‘Tis the season for New Year’s resolutions … and maybe a few lingering regrets. If you’re like most Americans, you plan on tackling both this year.
Student Loan Hero conducted a survey to find out what the biggest New Year’s resolutions are for 2016, as well as the financial decisions Americans regret most from 2015.
Find out how you compare and what you can do to crush your 2016 goals.
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Top New Year’s Resolutions for 2016
If you had to choose, would you focus on your health, career, finances, or something entirely different this year? We asked, and America answered.
Which of the following most closely fits your most important 2016 resolution:
- Get in shape/eat healthy: 37.7%
- Travel more: 16.7%
- Be more financially responsible: 15.8%
- Create a better work/life balance: 14.6%
- Do more charity work/volunteer: 7.7%
- Get a promotion/change jobs: 7.5%
Health Is Top Resolution
Nearly 38 percent of Americans plan to put their health above everything else in 2016, selecting “get in shape/eat healthy” as their top New Year’s resolution. And it makes sense — about the same number of U.S. adults (35.7 percent) are considered to be clinically obese. Here’s to more salads and cardio in 2016.
But America’s obesity rate is not the only frightening number we face today. We’re taking on way too much debt as a country.
Finances Take a Back Seat
Consider that U.S. cardholders carry an average credit card balance of $5,234. According to the Federal Reserve, total outstanding consumer debt was a whopping $3.34 trillion as of February 2015 — excluding home loans! That number does, however, include the pesky $1.2 trillion in student loan debt that plagues more than 40 million Americans.
So, perhaps surprisingly, the resolution to “be more financially responsible” only made third place among all resolutions, also beat out by “travel more,” which got 16.7 percent of responses.
Interestingly, the least popular New Year’s resolution was “get a promotion/change jobs.” In fact, a greater number of people would rather give more of their time and money to charity than improve their job situations. Yet according to a recent Gallup poll, 70 percent of U.S. workers are dissatisfied with their jobs.
Whether they simply have higher priorities, or don’t believe they can successfully climb the career ladder, it’s important to know that job growth is an important — and attainable — goal to pursue.
Biggest Money Regrets
Often, when setting goals for the future, it’s to correct mistakes from the past. And according to the respondents of our poll, a lot of people regret how little money they put towards savings and debt repayment last year.
What was your biggest financial regret of 2015?
- Didn’t save or invest as much as I wanted: 34.9%
- Didn’t pay off as much debt as I wanted: 21.8%
- Spent frivolously (shopping, Netflix, meals): 18.3%
- Didn’t pay my bills on time: 8.7%
- Made a bad investment: 8.5%
- Made a major purchase I couldn’t afford: 4.9%
- Other: 2.8%
Lack of Savings
“Didn’t save or invest as much as I wanted” was by far the biggest money regret of 2015. Again, the results aren’t too surprising.
According to data from national nonprofit NeighborWorks America, about a third of Americans — or 72 million people — don’t have any emergency savings at all. Additionally, USA Today reported about 36 percent of workers have less than $1,000 in savings and investments that could be used for retirement (excluding primary residence or defined benefits plans).
Maybe that’s why those age 45-54 chose “didn’t save or invest” much more frequently than 35-44 year-olds. As Americans get older and closer to retirement age, they realize how important regularly saving and investing actually are — and how much catching up they need to do.
Deep in Debt
The second biggest regret of 2015 was “didn’t pay off as much debt as I wanted” at 21.8 percent. Given the U.S. debt figures mentioned earlier, it’s good to know Americans at least recognize their shortcomings when it comes to debt repayment. Plus, as you’ll see below, they’re making it a priority in 2016.
Financial Resolutions for 2016
U.S. debt might be at near-crisis levels, but close to a third of Americans have resolved to eliminate theirs in 2016. The only goal that rivals debt elimination is to have no goal at all.
What is your top financial resolution for 2016?
- Pay off debt: 26.9%
- I don’t have a financial resolution for 2016: 23.2%
- Save for retirement: 17.3%
- Build an emergency savings fund: 12.6%
- Improve my credit score: 10.3%
- Buy a house: 8.4%
- Other: 1.3%
Unfortunately, almost one in four Americans admits they do not have a financial resolution at all for 2016, with this being the top response among those age 18-24 and 65+.
The good news is that even though money might not be the number one priority for most Americans when setting New Year’s resolutions, about three quarters do have some sort of goal to improve their financial situation this year.
In addition to paying off debt, retirement savings will be a major focus. In fact, “save for retirement” was the most popular financial resolution among 45-54 and 55-64 year-olds. As they say, better late than never.
How to Accomplish Your Financial Goals in 2016
Whether you plan to hit the gym more often or pay off your student loans for good, congratulations — setting goals is both admirable and a healthy part of personal development.
But did you know only eight percent of people who set New Year’s resolutions actually accomplish them? Here are some ways to ensure you’ve achieved everything you want by next year:
- Write it down: Those who physically write their goals out are 42 percent more likely to achieve them.
- Tell someone: Sharing your goals with others adds accountability. Tell family and friends about your plans.
- Be realistic: Goals should be challenging, yet attainable. Don’t burn yourself out chasing a resolution that’s near-impossible.
- Be specific: Make sure your goals are specific and measurable, so you always know whether or not you’re on track to reach them.
Survey was conducted via Google Consumer Surveys on behalf of Student Loan Hero on December 23, 2015, with a nationally representative sample of 1,015 adults living in the United States and a margin of error of 2.6 percent or lower.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|