Surveys show Americans are surprisingly satisfied with their finances. Here’s why

There is encouraging news after the past few years of pandemics, high inflation, high interest rates and global economic uncertainty. The U.S. economy could improve in 2024. January 17, 2024 Many Americans are fairly satisfied with their personal finances, according to an Axios Vibes survey of The Harris Poll released in January.

This is a good sign that the dreaded ‘whammy’ is over. For those unfamiliar, a vibecession refers to an economic downturn caused by high prices and high interest rates. If people feel secure in their jobs, satisfied with their personal finances, and willing to continue spending and investing, the overall U.S. economy can remain strong through 2024 and beyond.

Let’s take a look at some of the key findings from the Axios Vibes survey and what they could mean for the economy and personal finances.

1. The majority of Americans feel “good” about their money.

According to an Axios Vibes survey: 63% of Americans say their current financial situation is “good.” 19% said their finances were “very good.” With low unemployment and the possibility of interest rate cuts in 2024, this could be a sign that more Americans are feeling positive about their income and the cost of their loans.

But not all Americans are equally satisfied with their personal finances. According to the survey 37% of Americans say their personal financial situation is “poor.” This group of Americans was more likely than the national average to say their finances were “poor.”

• 42% of Republicans
• 43% of women
• 46% of rural residents
• 47% of singles
• 57% of people renting a home

Only 32% of people in relationships and 28% of Democrats say their personal finances are “poor.”

What explains this difference of opinion? Women face a gender wage gap, with women earning on average $0.82 for every dollar men earn. Single people are left to pay rising housing and grocery costs on their own without a partner to share the costs. Renters have seen housing costs rise, but they haven’t gained equity from rising home prices like homeowners have.

An Axios Vibes survey analysis also found that the level of financial dissatisfaction with the national economy among Republicans and rural residents “may reflect a general distrust of institutions or national leaders.” If your party controls the White House, you are more likely to feel that the U.S. economy is heading in the right direction.

2. Most Americans are optimistic about the future in 2024.

As we look ahead to the remaining years of 2024, which are not entirely “new,” many Americans are optimistic about the future of their personal finances. According to the survey, 63% of Americans say they are “sure” about job security, and 66% of Americans think 2024 will be better than 2023. 85% of Americans believe they can change their personal finances. For better results in 2024.

This is an encouraging sign. Many people have the power to take control of their finances, even as they struggle with rising prices and declining savings. Here are some possible methods: Transform your personal finances for the better in 2024.

The unemployment rate was 3.7% as of December 2023, back to pre-pandemic levels and close to a 20-year low. Low unemployment means many people have the “pricing power” to demand better wages. The Federal Reserve could cut interest rates in 2024, making it easier to refinance personal loans or pay off high-interest debt.

3. The U.S. economy still has room for improvement in 2024.

Not everyone feels great about their personal finances, and high inflation on food and gas is a big reason why. People are still suffering from high food prices. According to an Axios survey:

• 60% of Americans feel “triggered” by visiting the grocery store.
• 67% of Americans believe food will continue to become more expensive.
• More than 50% are concerned that gasoline prices (which have been falling in recent months) will start to rise again.

As Americans deplete their savings accounts and run up credit card debt, there are signs that some Americans are engaging in what a study from the Harris Poll describes as “negative spending.” This means people are continuing to spend even though they can’t afford it. The rise in credit card delinquencies could be a sign of greater suffering to come for Americans who lack emergency cash savings.

gist: Many Americans say they are satisfied with their personal finances despite concerns and frustrations about high prices and the overall economy. But nearly 9 in 10 Americans agree on one important point. In other words, they believe they have the ability to make active, positive changes in their financial lives. No matter what happens to the economy in 2024, there’s potential to make this a great year for your savings and investment goals.

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