Quicken Resolution Round-up: This New Year, Try Investing in You
As the year comes to a close, we’re starting to think about how to make the most of the new year and live our best lives.
Quicken, maker of the best-selling personal finance software in the US, surveyed over 1,000 adults to gather insights into financial New Year’s resolutions — and discovered some surprising secrets to success.
The best things in life might be free, but it turns out resolutions aren’t.
- The majority of people making resolutions are spending money on them. 56% of people who make resolutions say they spend money in order to keep their resolutions. The good news? People who invest money in resolutions are 25% more likely to report keeping them for a year or more.
People spend real money on their resolutions.
- Nearly 40% of people who spend on resolutions say they spend between $100 - $500, while 14% say they spend between $500 - $1000 and 12.5% say they spend a whopping $1000 - $5000.
But not everyone is admitting to it.
- Forty percent of people who say they spend on their resolutions also say they’ve hidden how much money they have spent on a resolution. Men are nearly 40% more likely than women to say they’ve hidden the fact that they’ve spent money on resolutions (47% of men vs. 34% of women).
New Year, New Spending Habits?
- Over 55% of people report making resolutions about their health or fitness, while financial resolutions came in second place. Each year, millions of Americans make financial resolutions. People who make financial resolutions are most likely to say they plan to pay down debt (38%) or save money (37%).
- Men are more likely than women to make financial resolutions by about 16% (people who make financial resolutions are 52% men vs. 45% women)
- Millennials (age 23-38) are the most likely generation to report making financial resolutions — nearly a quarter (24%) of millennials who make resolutions report making financial resolutions, vs. just 9% of Gen X’ers (age 38-55) and 14% of boomers (age 55+).
- People who make financial resolutions spend more overall on those resolutions — over half (51%) say they spend over $500 and 1 in 4 (27%) say they spend between $1,000 - $3,000 on goals like spending less, saving money toward a specific goal, or investing.
Resolutions are a young (wo)man’s game.
- While just over half of all people make resolutions (51%), women are about 10% more likely to make resolutions than men (53% of women vs. 48% of men make resolutions).
- While only 30% of boomers bother to make resolutions, the younger generations’ resolution game is strong. Millennials are twice as likely to make a resolution — 60% of millennials make them. Gen X is close behind, 50% resolve to make changes in the new year, respectively.
Long live the resolution!
- Millennials are most likely to say they keep resolutions for a year or more, with one in five saying that’s how long they keep them.
- While Gen Z (age 22 or under) is most likely to say they make a resolution (65%), they’re also most likely to say they abandon it in five weeks or less (68% of those who make resolutions).
Anything you resolve, I resolve better
Married couples each say they’re more likely to keep a resolution than their spouse is — clearly we’re more confident in our own resolve than our partner’s. 65% percent of men and 70% of women say that they are more likely to keep their resolution than their spouse is. That said, married couples overwhelmingly report that their spouse is a positive influence — 60% report that their spouse helps them keep their resolutions.
Want to Keep Your New Year’s Resolution? Find a Tool to Track It.
- The majority (62%) of people who report keeping their New Year’s resolution for a year or more use software or trackers to do so, vs. less than half of people who do not keep their resolutions.
- Accountability is also key. 72% of people who report keeping their resolutions tell someone about it, vs. 60% of people who do not keep them.
Accountability is a time-tested tool for success. Spending on tools that help you plan and track toward your long-term financial goals may be the key to sticking to those financial resolutions long past February. Sharing your goals with a loved one also helps. This new year, consider investing in yourself.