Ahh, life’s big changes. They can be exciting, but also can induce financial worries. If money was no object, changing jobs or buying a new home would be less stressful. Nevertheless, Americans don’t seem to be letting money woes get in the way of their future plans.
According to the Liberty Mutual Insurance New Beginnings study (which surveyed nearly 2,000 Americans over age 18), 42 percent of people said they were planning to make at least one major life change this year. Forty-four percent said they expected to move or undertake a major home renovation, while 22 percent were on the job hunt. Millennials, however, are the most focused on new beginnings, with nearly two-thirds saying they will be making a life change this year.
But here’s the kicker: All of these plans for the future can bring lots of money anxiety. Those millennials with the big plans also happen to be the most stressed in terms of finances, with 89 percent saying they were most concerned about money. Boomers weren’t far behind with 73 percent of them saying the same.
For the most part, I found these survey results encouraging, and on par with some of the emotions I’ve had in my own financial decision making over the past few years. A major life change should be accompanied by some apprehension especially if it involves going into debt or the flow of your income. For instance, becoming a full-time freelance writer was hardly something I leaped into. I had been pondering the move for a few years, but worrying about not having a steady income prevented me from making the move. Ultimately, it was getting laid off by my full-time employer that gave me the kick I needed to make it happen. (So far, so good.)
Here are a couple of other takeaways from the survey findings:
- Americans are more aware that their financial standing matters and has a direct correlation to their quality of life. No longer are we a nation that throws caution to the wind, taking on mortgages we really can’t afford (actually, we won’t qualify to do that anymore even if we tried, which is why strong credit and overall financial health is so important). The economic recovery also is giving us more confidence to look for better job opportunities. In other words, we’ve adopted a positive but prudent outlook, which makes sense after having lived through the rocky economic downturn of the past few years.
- When it comes to making big decisions, a little worry is a good thing. Concern over how much debt you can reasonably take on if you move or invest in a home, and how you’ll pay it back, will help you to make smarter borrowing decisions. The same should go for making smaller purchases, too. Likewise, weighing the pros and cons of a job change, and having a financial plan in place even if that means saving up before you make the leap will help protect you from a gap in income.
- Be willing to invest your own time and effort in addition to money to achieve your goals. Today’s younger adults are the most willing to participate in their own home improvement projects. According to the survey, 9 in 10 millennials (and 7 in 10 overall) said they will put some DIY effort into their home renovations. And more than half (55 percent) of respondents are doing so to improve their home’s value a wise investment.
As Americans, we strive to advance our careers, own our own homes and be more self-sufficient. As per the survey, worrying about money comes with the territory. In my book, being more cash conscious is a good thing that will ultimately make us more financially prepared for the major life changes we seek.