How to Keep Your Financial Resolutions on Track in 2024
As we step into the new year, many of us are filled with optimism and determination to achieve our resolutions. However, by mid-January, a significant number of these resolutions have already been abandoned. According to popular belief, January 12th is known as “Quitter’s Day,” the day when most people give up on their goals for the year. Research supports this, showing that nearly half of us abandon our resolutions within the first month.
Interestingly, many of these broken resolutions are financially based. Common goals include spending less and saving more. Despite the high failure rate, some people manage to keep their resolutions throughout the year. So, what’s their secret?
Tracking Your Credit Score: A Key to Financial Success
When it comes to monitoring personal data, consumers are more likely to track health and fitness metrics like weight, sleep, and step counts than their credit scores. A recent survey by Experian revealed that about two-thirds of respondents track their physical activity on a monthly basis or more frequently. However, less than half (48%) check their credit score at least monthly. Interestingly, 61% of those under age 45 (largely millennials and Gen Z) check their credit score at least monthly, compared to 41% of Generation X and baby boomers.
The Importance of Tracking Progress
Accountability is crucial for keeping resolutions on track. Studies indicate that those who write down their goals and set up a way to track progress are twice as likely to achieve them. Big businesses have long known this, implementing SMART goals—specific, measurable, achievable, relevant, and time-bound—to help employees reach their objectives. While tracking SMART goals might be too cumbersome for the average consumer, finding a system to track your financial goals can be highly beneficial.
Fortunately, technological advances, particularly smartphones, have made it easier to measure specific, achievable goals. However, the effectiveness of financial tracking apps still lags behind fitness apps. Steps and weigh-ins are more reliably trackable than spending from multiple accounts for daily purchases. It’s at these micro-levels—counting steps, calories, or pennies—that resolutions are often made or broken.
Demand for Technological Accountability
Despite their varying effectiveness, there’s a clear demand for technological accountability in tracking fitness and finance goals. A November 2023 Forbes survey found that while improving finances is a popular resolution, it remains a runner-up to improving fitness in the new year.
Fitness and Finance Resolutions for 2024
Even though tracking your finances may not be as seamless as tracking mile splits with a smartwatch, financial planners and economists have been studying consumer savings behavior for years. Behavioral economics has already made a positive impact on how much most workers save for retirement by implementing automatic savings increases annually for many 401(k) and other workplace retirement savings plans.
When it comes to credit, establishing a pattern of on-time payments is the best way to improve your scores. These payments don’t all have to be debt payments. Experian Boost® allows users to add utility bills and other payments to their Experian credit report, which can improve their FICO® Score and help them reach financial goals in 2024. Experian Boost has improved FICO® Scores by an average of 13 points among users who saw a score increase.
Why Physical Activity is Monitored More Frequently Than Credit
The fact that more people monitor their physical activity more frequently than their credit makes sense. Most consumers’ credit scores don’t change as often as their step count. Additionally, not all consumers need new credit in the short or intermediate term, which may cause them to check their credit score less often.
Conclusion
As we move forward in 2024, it’s essential to keep track of both our fitness and financial goals. While it may be easier to monitor physical activity, keeping an eye on your credit score and financial habits is equally important. At O1ne Mortgage, we understand the challenges of maintaining financial resolutions and are here to help. Whether you’re looking to improve your credit score or need assistance with mortgage services, our team is ready to support you. Call us at 213-732-3074 for any mortgage service needs. Let’s make 2024 the year you achieve your financial goals!
