According to a recent survey, about 29% of US adults expect their personal finances to get worse in the next year.
A Bankrate.com survey released Monday found that number split between 18% who said they expected their financial situation to get “somewhat worse” in 2023 and 11% who said it would “will significantly worsen”. According to the survey, more than a third of all respondents, 36%, said they thought it would remain roughly unchanged.
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Among the 66% of respondents who expected their personal finances to see no improvement in the coming year, the reason many pointed to was persistent inflation, according to Bankrate.com. About 63% cited it.
Consumer inflation has been running at painfully high levels for some time. FOX Business reported last week that November cooled slightly, rising 0.1% month-over-month and 7.1% year-over-year.
About 29% said “the work done by elected representatives” was the reason they expected their financial situation to stay the same or get worse. Similar but slightly lower percentages cited stagnant wages or reduced income and changing interest rates, with 27% citing the former and 25% citing the latter, the survey found.
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The Federal Reserve has made several interest rate hikes this year as part of its efforts to reduce inflation, including four back-to-back hikes of 75 basis points and — most recently this month — 50 basis points.
Debt that respondents had accumulated, money built up from savings or investments, and changes in life circumstances were among some of the other reasons why they thought their finances would not improve.
Meanwhile, 34% of all respondents had a rosier outlook for how they will fare financially in 2023. Nearly a quarter (24%) of these Americans expected their situation to get “somewhat better,” and 10% said it would “ will significantly improve”. ” the survey showed.
A Bankrate.com survey found that for Americans who expect to improve their personal finances in 2023, earning more money at work was the most commonly cited reason, up 41%.
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The main reasons behind this were lower debt at the level of 30%; change in life circumstances by 25%; and generating more money from investments or savings, at 24%, according to the survey. “Lower levels of inflation” were cited by 19% of those who predict their finances will improve in 2023.
Some other respondents either said “other” or said they don’t know why they think their finances will or won’t improve when asked why, Bankrate.com reports.
For 2023, overall survey respondents, according to a Bankrate.com survey, said their biggest financial goals were paying off debt, improving budgeting and saving more for emergencies.
The survey, conducted for Bankrate by YouGov, was conducted online Nov. 15-18 and surveyed more than 3,600 US adults.