NEW YORK, January 11, 2021 (Newswire.com) – A recent Credello survey had millennials share their financial resolutions of 2021. We found that saving remains top of mind, financial concerns are a daily occurrence, and despite 2020 being an all-around dumpster fire, most millennials remain optimistic. Here are a few of our most interesting finds, along with some tips for getting out of debt and setting yourself up for success in 2021.
Saving reigns supreme
Cash is indeed king, with 35% of respondents noting that their biggest 2021 goal is saving, followed by becoming debt-free (26%). Saving was also the biggest goal in 2020 for 42% of millennials, while 19% reported they wanted to go debt-free. The slight year-to-year drop in saving and increase in eliminating debt might be attributed to the pandemic causing more millennials to overspend or lose their jobs.
Constant concerns about money; debt and retirement
Of those surveyed, 50% of millennials report worrying about their finances daily. Even those who earn over $75K/year are concerned about their bank accounts, with 42% noting they worry every day. Looks like extra financial padding doesn’t make one immune to quotidian money fears. The biggest areas of concern are debt and retirement, which tied at 38%.
Plenty of 2021 financial optimism; boosts from bonuses
Despite all of the above, there is still hope: 73% expect to have a better year financially, and over half of respondents (52%) note that they met or outperformed their 2020 financial resolutions. For those who did save, approximately half did so by receiving a bonus or extra income. Almost one-third also had help by way of stimulus checks (30%). Here’s hoping that the millennial optimism is powerful enough to make the coming year a positive one.
4 ways to eliminate debt and have your best financial year yet
While we, unfortunately, can’t control the year ahead, we can try to make good money decisions and keep our financial lives on track. If you want to save in the coming year, one of the first steps you should take is to eliminate any existing debt. Here are four steps to get out of debt so you can start saving:
1. Assess your debt
Find out how much you actually owe by taking a look at your credit report and credit card/loan statements. Make sure to also check your credit score, since it will help you determine which interest rates/debt consolidation loans you can qualify for.
2. Select a repayment strategy
Pick a strategy that works for you, such as the debt snowball or debt avalanche methods. Debt consolidation, which rolls multiple debts into a single monthly payment, is another potential option. The debt consolidation calculator can help you estimate savings from consolidation.
3. Cut back
Create a budget and track your spending. See where you can save a little extra each month. For example, do you really need to pay for 5 streaming services each month? Answer: probably not.
4. Boost your income
Starting a side hustle or picking up some extra hours at work can make a big difference in boosting your earnings.