Financial Stability Tops Physical Health As Number One Priority For Americans
At the beginning of the year, many people make resolutions about getting in shape. Starting diets, doing yoga, and going to the gym are the prevailing trends as a new year begins. However, this year those resolutions have been edged out in popularity by a different goal: getting finances in shape.
Seventy-one percent of participants in Allianz Life Insurance Company’s New Year’s Resolution Survey said their number-one priority for 2018 was to improve their financial stability. Forty-two percent of them resolved to manage their money better and put more into savings, in pursuit of that goal.
When it comes to finances, many people said their worst habit was “spending too much money” on things they didn’t need. Thirty-two percent of survey respondents said they regularly overspend on unnecessary purchases. Another twenty-nine percent said they don’t save any money, while 24% felt they could save more, and 23% were worried about paying down debt quickly enough.
Bad financial habits have lasting consequences
Not saving money and spending too much can lead to credit card debt, which can have negative effects on more than just your bank account. Carrying a large amount of debt can impact your credit score, making it difficult to secure a low interest rate on mortgages, car payments, and other types of loans.
When consumers have a credit score of less than 650, they’re regarded as “sub-prime,” and often cannot be approved for credit cards that offer the lowest rates and best rewards. Part of being financially stable means achieving and maintaining a good credit score, in order to have more financial flexibility and freedom.
For folks with bad credit, there are ways of improving a credit score. Always paying bills on time, keeping your balance due lower than your amount of available credit, keeping accounts open in order to have a long credit history, and utilizing a mix of types of credit are all ways of getting better credit.
The Allianz Life Insurance Company conducted this survey online during November 2017, and more than 1,000 people participated.