On New Year’s Eve, Mike, known among his friends for his not-so-healthy eating habits, declared his resolution: “This year, I’m going to eat more greens!” His friends, used to seeing him dodge anything resembling a vegetable, were skeptical but supportive. A week into January, they visited Mike and were astonished to see bowls of green everywhere. “Wow, Mike, you’re really sticking to your resolution!” one friend exclaimed. Mike, grinning, replied, “Absolutely!” But as they looked closer, they realized the ‘greens’ were bowls of green jellybeans, lime-flavored chips, and mint chocolate chip ice cream.
As 2024 unfolds, many Americans are making similar resolutions focusing on increasing their greens … Dollars, that is! According to a recent Statista’s Consumer Insights survey, Americans are shifting their focus from traditional New Year’s resolutions like exercising more or eating healthier to a more pressing concern: improving their financial circumstances.
In stark contrast to the typical health-focused resolutions, 2024 has seen a notable pivot. Financial goals have taken precedence, reflecting a growing awareness of the importance of financial health in achieving overall well-being. This shift clearly indicates how Americans are re-evaluating their priorities amid ongoing economic challenges and uncertainties.
This change can be attributed to several factors. The economic landscape, marked by inflation, interest rate hikes, and market instability, has undoubtedly influenced the public’s mindset. Additionally, the lingering effects of the pandemic have led many to reassess their financial stability and security. Goals such as saving more money, reducing debt, and investing wisely are now at the forefront of Americans’ minds.
The ongoing conflicts in regions like Russia and Ukraine and the Israel war against Hamas have significant implications for the global economy. These geopolitical tensions contribute to uncertainty and instability, affecting worldwide trade and investments. The expectations of central bankers to cut rates to stimulate growth will only grow stronger in such a fragile international climate. This week, we have experienced the start as the Bank of Israel cut its rate for the first time since 2020.
The rise in financial resolutions also underscores the need for better financial education and training. People are seeking direction on managing their finances effectively, from budgeting and saving to investing and retirement planning. The demand for financial literacy coaching has increased exponentially over the past decade and even more so over the past few years.
Technology is playing a crucial role in this financial awakening. Budgeting apps, online investment platforms, and financial planning tools have made managing finances more accessible and user-friendly. This technological revolution enables people to control their financial health more efficiently and effectively than ever before. Beware, however, that financial administration is not a DIY side hustle.
While financial goals have taken the lead, it is important to maintain a holistic approach to a total well-being. After all, financial stress can have a significant impact on one’s overall health. A comprehensive approach encompassing financial, physical, and mental well-being is the key to achieving a truly prosperous life.
Perhaps we can use the principles of the Talmud to help us truly maximize our “New Year’s” resolutions. Tractate Rosh Hashana discusses four Jewish New Year’s where different aspects of life are given specific moments for reflection and renewal. The first of Nisan, marking the beginning of the reign of kings – emphasizes leadership and communal commitments. The first of Elul, designated for tithing animals – focuses on stewardship, charity, and accountability. Rosh Hashanah, the well-known Jewish New Year, encourages self-reflection and renewal, and Tu B’Shevat, the New Year for trees, symbolizes planting, growth, and renewal. How fortunate we are, the Jewish people, to have several New Years to help us achieve maximum life success.
Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.
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