As the end of 2024 approaches, many people revisit the financial resolutions they set at the start of the year. Whether it’s saving more, paying off debt, or building an emergency fund, it’s important to evaluate our progress and make a final push to achieve what we set out to do. But just how many people actually stick to their financial goals? We investigated and found ways to help you be part of the goal-getters.
Are you on track with your goals?
In a recent poll on our Instagram account, we asked our investors whether they’re on track to reach their 2024 financial resolutions. 35% said they already reached them, whereas the remaining 65% said they were still working towards achieving them.
Checking in on your progress is essential in achieving your objectives. It’s also a great way to measure your progress and celebrate small milestones. Celebrating your progress has a profound impact on your mindset. This positive reinforcement is essential for maintaining motivation and commitment to your financial goals.
The reality of financial resolutions
According to UK Finance, in the UK, around 53% of people set New Year’s resolutions, with a significant focus on financial well-being. Common goals include saving more, budgeting better, and paying off debts. However, only a small percentage successfully stick to their goals throughout the year.
Across Europe, people find it equally challenging to stay on track with their financial goals. A study conducted by ING found that 33% of people in Germany and the UK struggle to follow through on their financial resolutions, often due to a lack of financial literacy and effective budgeting. Additionally, 45% of Europeans cite unexpected expenses as a major obstacle in reaching their financial goals.
These statistics highlight the difficulty of sticking to financial resolutions, but the good news is that with a focused strategy, you can still finish 2024 strong.
Three key tips to help you reach your financial resolutions
- Automate your savings: Automating transfers to your savings or investment accounts ensures you consistently work toward your goals without needing to think about it every month.
- Adjust your budget: As unexpected expenses arise, it’s important to revisit your budget. Make necessary adjustments to stay on track and allocate more toward your long-term financial goals.
- Maximize your investment opportunities: See if you can make some changes to your expenses to prioritize your investments for the rest of the year. With the new higher return rate of up to 6.75%* p.a. on your entire Go & Grow investment, there’s no better time to make your money work harder for you. Whether it’s investing more or increasing contributions, now’s the time to take advantage of this opportunity.
The power of compound interest
‘But the end of the year is almost here, I don’t have enough time to meet my financial goals’. If this is you, it’s time to rethink how big an impact your investment can have, especially thanks to compound interest.
Why compound interest matters:
Compound interest is when your returns begin to generate returns of their own, allowing your money to grow exponentially over time. The earlier you start, the greater the impact. So, even though there are just a few months left before the end of the year, investing now means your earnings can compound for faster financial growth.
Example:
Let’s say you invest €1,000 into Go & Grow, earning returns of up to 6.75%* p.a. Even though it’s only a few months, you’d see more growth compared to saving the money in a typical savings account. By investing more as the months progress, you can set the stage for substantial growth into 2025 and beyond. Go & Grow’s competitive rate makes it an excellent tool for making the most of compound interest.
Make the most of 2024
While it may seem like your financial resolutions are out of reach, with every extra step you take, or additional investment you make, you can get closer to achieving what you set out to do. With a few months left, you still have time to achieve your financial goals.
Whether it’s automating your savings or investing in Go & Grow, the tools to reach your resolutions are within reach. Let’s finish the year strong.
Stay tuned for more tips, insights, and inspiration on your financial journey. You can find even more inspiration on our Instagram account.