How Is The Average American Planning To Manage Finances Better This Year?

Resolving to be better with finances is easier than actually taking action, so not everyone who wants to do better will follow through. However, according to a new study commissioned by Slickdeals, 76% of Americans have resolved to be smarter with their finances in 2022.

The top 5 goals stated by the 2,000 respondents to the survey were:

• Getting out of debt (50%)
• Removing unnecessary bills (47%)
• Seeking out deals and discounts (44%)
• Using a savings app (44%)
• Applying for a credit card/credit increase (41%)

Other goals, that came a little lower down the list, included improving credit scores, switching banks, and investing money. Whether all those who have committed to improving finances will or not is up to them, but there are some good goals on the list. Here’s why these top five goals are so important.

Getting out of debt

According to Fortune, US household debt rose by $266 billion during the first quarter of 2022. While much of this debt is due to mortgages and auto loans, plenty of it is still expensive consumer debt that most people need to address if they are ever to get their finances under control. People put off addressing their consumer debt as it is invariably a big task, and certainly can’t be done overnight, but just making a plan to pay down debt and having a deadline to look forward to, when you’ll eventually be debt-free, can make you feel much more in control of your finances.

Removing unnecessary bills

Yahoo Finance has estimated that Americans spend, on average, $348 a year on subscriptions they’re not using, with a lot of that being on streaming services and other entertainment-based subscriptions. Many more are paying more than they need to for utilities, cell phone plans, bank charges, and insurance, among other things. It’s well worth looking at all your regular bills and seeing what can be canceled, switched, or re-negotiated. Many people can save hundreds of dollars, just by switching their cell phone plan.

Seeking out deals and discounts

It is almost always worth looking for the best deal on a large purchase, and often on a smaller one too. Online comparison sites make shopping for the best deal on everything from insurance to a new credit card relatively easy. Survey respondents also mentioned that they would be using coupons more for deals and discounts. Again, technology makes this a whole lot easier. There are apps such as Honey that will automatically search for coupon codes for you at checkout when you shop online, plus a range of coupon apps that allow you to store discount deals on your phone too.

Using a savings app

There are a ton of savings apps out there you might want to try. Always take a close look at the features of any app to make sure they suit your needs. Here are just a few you might want to consider:

• Mint: Good for beginners to personal finance
• Chime: Good for easy savings
• Firstly: Good for couples who want to manage finances together
• GoodBudget: Good for those who use the envelope system of budgeting
• Long Game: Good for a fun, game-like experience
• Current: Good for teens, students, and other young adults
• Acorns: Good for new investors
• Qoins: Good for those who need to manage debt

Applying for a credit card/credit increase

While using a credit card irresponsibly can be one of the worst things you can do for your finances, there are some big advantages to credit cards when they are used right. It can also be a very good thing to get a credit increase, even if you don’t need it. In fact, especially if you don’t need it, as credit you don’t use improves your credit utilization rate, which in turn tends to improve your credit score.

The majority of Americans are addressing these issues this year, but your needs might be more complex. Always consult a financial professional if you’re not sure where to start or what to prioritize.

Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen