America has gone on a savings binge.
As we recently reported, the savings rate in the U.S. nearly quadrupled from April 2019 to April 2020. Flush with all that cash, savers now might be wondering what to do with it.
New York Life’s latest Wealth Watch survey — conducted among 2,200 U.S. adults in late June — found that savers are prioritizing three long-term financial goals well above all others.
1. Building my emergency funds
A rainy day can arrive at any moment. If you ever doubted that truth, you likely changed your mind sometime in the past 18 months.
As COVID-19 swept across the country, millions of Americans found themselves out of work. Some of these workers still remain on the sidelines.
Homeowners and renters who suddenly found it hard to meet their monthly financial obligations now understand the need to build a financial cushion before the next crisis — personal or societal — arises.
Perhaps that’s why building an emergency fund is America’s top financial priority. In the New York Life Wealth Watch survey, 41% of respondents cited it as a long-term goal they are prioritizing.
If you are among them, check out “9 Tips for Starting an Emergency Fund Today.”
2. Being on track to retire at my desired age
Few financial fears are more worrisome than not having saved enough for retirement. Who doesn’t fret about running out of money before running out of life?
Apparently, a lot of Americans share this concern, as they have made being on track to retire at their chosen age the No. 2 long-term financial goal, with 31% of survey respondents prioritizing it.
Making foolish decisions can easily derail your efforts to build a solid financial foundation for your golden years. We detail some of the worst errors in “5 Money Mistakes That Will Wreck Your Retirement.”
3. Paying off credit card debt
It’s tough to build emergency savings or sock away money for retirement when you are drowning in debt.
Paying off credit card debt is America’s No. 3 long-term financial goal, with 29% of New York Life Wealth Watch survey respondents prioritizing it.
If you buckle down on your spending and perhaps take on a side hustle, you might achieve this goal sooner than you think.
However, if you simply feel overwhelmed by debt, don’t be ashamed to look for help. Visit the Money Talks News Solutions Center and find expert help in zapping your credit card debt.
Help with meeting your financial goals
If you are struggling to meet your financial goals, check out Money Talks News founder Stacy Johnson’s recent podcast episode “10 Ways to Earn at Least 10% on Your Savings.”
In the episode, Stacy talks about ways to earn 1,000 times more on your savings without taking 1,000 times more risk.
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Finally, consider enrolling in Money Talks News’ course Money Made Simple. In this course, you will learn lessons on 13 key financial topics by watching short videos and reading through jargon-free articles and worksheets.