In 2022, This Was Americans’ Biggest Financial Regret

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Americans had many financial regrets last year, but one stood far above the rest. 

For many people, 2022 was a challenging year financially. That’s to be expected when inflation hits record highs and there’s near-constant talk of a recession. Recent research has shown that a large portion of Americans aren’t feeling great about the state of their finances.

Nearly one-third (32%) of Americans said they experienced financial regrets in 2022, according to a Forbes Advisor poll. They also selected their top three regrets, and while there were quite a few mentioned, there was one that ranked far above the rest.

Americans’ biggest financial regrets of 2022

The biggest financial regret that Americans had in 2022 was not saving more money. Among Americans who had financial regrets, 56% mentioned not saving enough. Here were the top five most common regrets:

Not saving more money: 56%Spending above their means: 37%Took on too much credit card debt: 29%Didn’t make a budget or track spending: 22%Paid bills late: 14%

It’s understandable why the biggest regret, by far, was savings-related. Saving money is one of the most important financial habits, and it’s the key factor in many money goals. If you want to build an emergency fund, set aside money for a down payment on a home, or put away money for retirement, your progress will largely depend on how much you can save.

On the bright side, 43% of Americans are feeling optimistic and think their finances will improve in 2023. Only 15% believe their finances will get worse.

How to save more money in 2023

If you wish you had saved more last year, you’re not alone. But 2022 is over, so it’s best to put that year’s financial regrets behind you. Focus on saving more in 2023, because that’s a positive change you can control.

So, how can you make that happen? Here are five tips to boost your savings this year:

Set clear savings goals. Vague goals like “I want to save more money” rarely get good results. You’re much more likely to succeed if you set clear short- and long-term goals. For example, your short-term goal could be saving $150 per month, and your long-term goal could be saving $1,800 in a year.Make sure you have a high-yield savings account. Online banks have raised their interest rates quite a bit, and some now offer APYs of 3.5%, 4.0%, or more. Having a savings account with a high interest rate means your money will grow faster, and this could also serve as motivation to save more.Set up automatic transfers to your savings. It’s much easier to save money consistently when you’ve automated it. Decide on an amount you can afford to save, and then set up a regular transfer from the account where you receive your paycheck.Manage your money with a budgeting app. If you aren’t using one already, a budgeting app could help you track spending and see where you can cut back. Some budgeting apps connect to your bank accounts and credit cards, so this is also a convenient way to have all your financial accounts in one place.Work on increasing your income. Reducing spending can work, but only to a certain extent. Over the long haul, the best way to save more money is to earn more money. Brainstorm ways you could do that, such as getting a promotion, job hunting, or trying a side hustle.

Saving more money is challenging. It takes both hard work and a good savings strategy to succeed at it. Just keep in mind that it gets a lot easier once saving more turns into a habit for you. And if you make saving a priority for you now, you may not have any financial regrets at the end of 2023.

These savings accounts are FDIC insured and could earn you more than 12x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you more than 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

 Read More