Cautiously Optimistic: Americans are Feeling Better About their Finances, but Regrets and Concerns Persist
Submitted by Carson Now Reader on Thu, 10/12/2023 - 12:55pm
After a downward trend in feelings of financial security in the first half of 2023, Americans are starting to feel relief. A new survey from Country Financial found that Americans’ levels of financial security are improving. Nearly 6 in ten Americans (59%) rate their level of financial security as excellent or good, a 5-point increase from Q2 2023.
Additionally, those who have a financial advisor are more likely to have positive feelings, with 62% reporting their level of financial security as excellent or good vs. 52% of those who do not have a financial advisor.
“The high rates of inflation we experienced in 2021 and 2022 have subsided somewhat, which may be helping people feel more confident about their finances. Additionally, some may have experienced pay raises,” said Chelsie Moore, CFP®, CFA, Director of Wealth Management at COUNTRY Financial.
Future Economic Impacts are Top of Mind
Feelings of regret from the financial mistakes Americans made earlier this year and concerns for the future linger. Americans report they are concerned that economic factors and global events will negatively impact their financial goals, specifically:
• inflation (64%),
• tax increases (46%),
• increasing healthcare costs (44%),
• global events (40%),
• rising interest rates (38%) and more.
“All of these economic factors have occurred in the past and will most likely surface again at some point in the future. Having a plan that accounts for various negative factors that could occur, along with the help of an experienced financial advisor to guide you, can keep you from making a critical mistake that could make a tough situation even worse,” Moore said.
Financial Advisors Help Relieve Savings Struggles
Americans are also reflecting on financial challenges from the year so far. One in four Americans report their biggest financial regret from the last six months is not saving enough money, followed by taking on too much credit card debt (12%). However, those who have a financial advisor are less likely to say they regret not saving enough. In fact, 8 in ten of those who have a financial advisor say they were able to set aside money for savings or investments over the past two months, compared to 50% of those who do not have an advisor. They are also more likely to say they do not have any financial regrets (53% vs 38%).
“There are a few factors that may be impacting people’s ability to save to the extent that they want to,” Moore said. “First, recent inflation has caused prices to increase across the board. This means that people need to spend more just to continue paying for the goods and services they’re used to. If that part of the budget is going to increase then another part of the budget usually needs to give, like their savings rate.
“There are always competing needs and wants demanding pieces of a budget. A financial advisor can serve as another set of eyes to help you see opportunities or risks that you might be missing. They can also share common mistakes that others have made or provide solutions to problems that have proven successful with other clients.”
For more information or to speak with a financial advisor near you, visit https://www.countryfinancial.com/en/investments/planning-services.html
