High cost of living making it difficult for most Americans to meet financials goals in the new year

As the cost of living continues its journey upward, consumers are finding this tough to deal with, according to a Bread Financial survey.

Fifty-seven percent of survey respondents said their financial goals would be more difficult to meet than in other years, and 64% cited the cost-of-living increase as their top concern, while 47% blame inflation. 

Different generations handle this uncertainty differently. Nearly half of Baby Boomers plan to cut back on spending to make ends meet, while 39% plan to focus on paying down debt.

All respondents agree with cutting back in order to save more money. Forty-one percent of all respondents to Bread’s survey plan to cut back on takeout, and 35% want to avoid online shopping in the new year.

Younger generations are prioritizing other financial goals — however unattainable those may be. Twenty-nine percent of Millennials and 30% of Gen Z stated in Bread’s survey that saving for a home or car was a top priority. Considering that housing prices are still up, it’s easy to see why this financial goal may be a struggle for younger generations.

Saving money is difficult when you’re dealing with high-interest debts. A personal loan may be able to help you tackle that debt once and for all. Credible’s online personal loan marketplace can help you compare loan rates from multiple lenders all in one place.

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Side hustles are now commonplace among certain generations

Americans often need extra income other than their full-time job. Forty-five percent of Americans currently have a side hustle, and of those, 30% need one just to cover basic costs, a Self study shows.

More than half of the respondents to Self’s survey rely heavily on their side hustle every month, even though almost 70% of them have full-time jobs.

Self-directed side hustles that are easy to start and maintain are the norm for younger generations. Forty-four percent of Gen Z are considering food delivery jobs like Doordash and Grubhub to make extra cash, according to the Bread study. Thirty-nine percent of Millennials are also considering selling their own products on marketplaces like Etsy.

To keep up with rising costs, one of the most helpful money moves is paying down debt that’s dragging you down. A personal loan can help you drastically lower your interest rate on these debts. Credible can show you several personal loan lenders that offer quick loans. Head to Credible to compare rates and lenders and find a timeline that works for you.

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Building savings is difficult for most

Many generations face the same difficult road to saving money. Sixty-three percent of Americans save less than $300 a month, a Finder Consumer Confidence Index study found.

Gen Z has adapted most to push savings to the top of their priority list. Between May 2022 and May 2023, Gen Z tightened their belts and reduced credit and debit spending by 2%, according to a Bank of America study. For older generations, spending went up by 2.5% - 5% during the same time.

"This younger generation has proven resilient and resourceful in managing their money during a challenging environment, and adapting their lifestyles as needed," said Holly O'Neill, President of Retail Banking at Bank of America in a press release.

Sixty-two percent of the Finder survey respondents blame inflation for this inability to afford basic expenses like groceries and medical costs.

If you're interested in consolidating or refinancing debt to lower your monthly bills, it can help to have experienced loan officers on your side. Visit Credible to get all your loan consolidation and refinancing questions answered.

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