15 Trends To Watch in 2024 That Could Impact Your Finances

2024 promises a financial rollercoaster. Are you ready to navigate the twists and turns?

From economic shifts to market fluctuations and even the presidential election, your financial future is in for a wild ride.

Read on to discover the key trends that could impact your finances and learn how to prepare yourself financially for whatever comes your way.

Your wallet may have taken a significant hit in the past year or two because of gas prices, but there may be some relief in sight.

The average gas price in the United States at the end of 2023 hovered around $3.10 per gallon, with more than 20 states seeing their average gas prices under $3 a gallon.

Those prices are a welcome relief to consumers who saw prices reach an all-time high of more than $5 in June 2022, and it could mean you can keep more cash in your wallet to spend on other things. 

The last few months of 2023 saw a decline in mortgage rates, which could be a good sign if you’re in the market for a new home.

At the end of 2023, Freddie Mac reported the weekly average for mortgage rates was around 6.6% for a 30-year fixed-rate mortgage, compared to a 2023 high of 7.79% in October.

Programs using artificial intelligence are becoming more popular in all types of business and financial situations. That could work to your advantage.

You may be able to use an investment company’s AI tools to help you create personalized plans specifically based on your current situation, or get ideas for new goals you can try to reach to become more financially successful in 2024.

Major retailers have rewards programs that may help you earn points for purchases or get you extra deals for being a loyal customer. You may be a rewards customer for the major grocery store chains near you or retailers like Target and Walmart.

But pay close attention to smaller businesses or local retailers as they may be using rewards programs to generate more interest in their businesses, too.

Check with your favorite retailers and see if you can find additional ways to save cash in 2024 by staying loyal.

Due to the pandemic, more travelers are packing up and heading out after several years of lockdown.

There are several ways this could affect you financially, so pay attention to travel trends if you live in an area that relies on tourism. You could possibly earn extra money in the tourist or hospitality industry.

Inflation could still be an issue for investors in 2024, but there are some signs that it may not be as much of a factor compared to recent years. 

The Bureau of Labor Statistics has noted that the Consumer Price Index, which measures inflation, has slowed compared to a year ago.

Keep an eye on prices for things like groceries and household items, with prices steadying in some cases compared to 2022.

Housing costs have been expensive in recent years, but there are signs that the rental market may be softening. That could be good news for your budget if you’re a renter.

There are still hot markets in places like Miami or Chicago. Still, cities overall have seen decreases in the number of renters renewing their leases as they find more affordable options, along with fewer renters competing for available units.

One reason for lower costs may be the increase of new rental units becoming available and giving renters more options for their next place.

The unemployment rate continues to hover below 4%, which is a stark contrast to its spike in April 2020 at the height of the COVID-19 pandemic. That could be good news if you’re looking for a job.

However, you may also have to navigate some dark clouds as companies continue to lay off workers. You may want to watch for layoff announcements to see if the trend continues or affects economic markets.

ESG is becoming more popular among investors and could be something you’ll want to watch for your portfolio.

ESG stands for environmental, social, and governance investing. It focuses on climate change, social relationships, and sound business governance that encourages companies to act more responsibly.

These ESG standards could be an option for you to incorporate in your investment philosophy or strategy as more companies adopt these types of policies

2024 is a major election year with the position of U.S. president on the ballot as well as federal, state, and local offices.

Some investors are keeping a close eye on the election, believing that who is in charge could affect the economy and other financial decisions.

Keep an eye on markets and economic indicators closer to elections at the end of the year to see if they are shaped by voters’ decisions in November.

Fraud detection and cybersecurity issues will continue to be a factor for consumers, especially if your financial information is compromised due to retailers and companies having data breach issues or other security problems.

It may be a good idea to invest in an app or program that can alert you to potential fraud regarding your financial information. And you’ll want to continue to monitor your accounts for any unusual purchases so you can freeze those accounts in case of data breaches.

After a significant rise in housing prices in 2021 and 2022, the housing market has seen prices become more steady.

That’s good and bad news for potential buyers. Prices have been relatively level compared to a year earlier but are still much higher compared to the beginning of 2020.

Watch market prices in areas you may be interested in to see if prices continue to stay level or perhaps even decline in 2024.

Cryptocurrency could have a comeback in 2024 with more investors becoming interested in the crypto market.

However, the crypto market could also see more regulations, which could be good for investors who want to add crypto to their accounts but are worried about the stability of the currency or potential risks involved.

More companies and retailers are adopting cash-free and touch-free payment options that make it easy to tap and pay before leaving a retail site.

This can be a great advantage for consumers and a new trend that you may need to keep close tabs on if you’re trying to save money. Tap-to-pay options could make it easier for you to spend money, so you might want to keep a closer tab on your spending.

More Americans are retiring each year, and you could be one of them. Regularly check your retirement plans and see how your investment strategy works with current economic trends such as inflation, housing, and gas prices.

You may need to earn more money or shift away from volatile investments if you need the cash sooner than you think.

There are potentially good and bad trends coming in 2024. It’s important to be prepared as much as possible.

If you’re concerned about uncertainty, it may be a good time to open a high-yield savings account so you can save money with little risk compared to other options that may be more exposed to the market.

You’ll also want to consider your retirement portfolio. Your retirement goals may be several years off, but it could be a good time to adjust your portfolio to handle current market trends.