Fighting inflation: Experts share what behavioral changes, habits can save you major cash in 2024 (2024)

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Jeffrey Gundlach warns over ‘a death spiral’ with your personal finances

DoubleLine Capital CEO and CIO Jeffrey Gundlach, a.k.a. ‘The Bond King,’ on the macroeconomic trends that ‘bear watching’ amid a looming recession.

Americans are coming up with new ways to combat inflation through various budgeting hacks and experts say that a few behavioral and habitual modifications that push balance and commitment can save significant cash in 2024.

Larry Sprung, the bestselling author of "Financial Planning Made Personal," told Fox News Digital that it is important to have a balance between living for now and saving for years down the line.

"You have to look at the monetary aspect of things, sure. But at the same time, you also have to look at the joy aspect and figure out a way to balance having a joyful life today and enjoying it all versus saving for the future, you know maybe for the future that hopefully you see. But you don't want to be that person who scrounged for every dollar for when they retire, and they don't make it," he said.

Financial wellness expert Veetahl Eilat-Raichel listed several money hacks that consumers should prioritize in 2024, including a habit of viewing paid time off (PTO) in dollars versus days.

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Saving money for house and car concept : Coins in three jars with label. Ideas of saving for a down payment on a car or home that allow buyers to use down payment to reduce overall cost of borrowing. (iStock / iStock)

According to Veetahl, unused PTO is a liquid asset that can be cashed out and used to pay off your debts. Employees can unlock approximately $3,000 per year by accessing their accrued PTO's value.

"Imagine the possibilities if you were to put that money into a high-yield savings account, which can reap over 16 times MORE money over traditional savings accounts," she said.

The CEO and co-founder of Sorbet also said a switch from "quiet luxury" to "loud budgeting" can be a helpful tip for financial well-being in the new year.

"High inflation left many consumers with no choice but to rely on spending credit and increasing debt levels. While 2024 inflation rates are slowing down, it's still the perfect time to adopt 'loud budgeting' by passing on extra excursions–like saying no to eating out at a restaurant and instead figuring out what you want and can afford to spend money on, without relying on continued borrowing," she said.

The new trend called "loud budgeting" is gaining traction as a no-shame approach amid today's personal finance realities.

TikTok posters, for example, are telling friends and family they can't venture out for dinner, can't buy brand-new clothes (they have to buy second-hand instead), and don't have any extra cash to spend during the month after they pay their rent, car payments and credit card bills.

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Fighting inflation: Experts share what behavioral changes, habits can save you major cash in 2024 (3)

A couple coming together to review finances and craft budgets. (iStock / iStock)

A recent survey from Bank of America found that a majority of Americans (81%) have set financial goals to achieve in 2024. Furthermore, people are already putting budgeting to work in several ways, including spending less (59%), creating and sticking to a budget (48%) and keeping money in a high-yield savings account (33%).

Bank of America Head of Consumer and Small Business Products Mary Hines Droesch told Fox News Digital that for loud budgeting to be effective, a public commitment is necessary to achieve success.

Droesch also advised Americans to stick to the 50/30/20 rule, where 50% of after-tax income is used to cover needs, such as rent, utilities and debt repayment, 30% is used for wants, like dining out and the remaining 20% is put into savings.

"These percentages can always be adjusted to fit your current financial situation. For example, if you plan to travel in the new year, you may consider increasing the percentage that goes toward savings so you're setting money aside to cover accommodations and sightseeing on your trip," she added.

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Fighting inflation: Experts share what behavioral changes, habits can save you major cash in 2024 (4)

A shopper inside a grocery store in San Francisco, California, U.S., on Monday, May 2, 2022. U.S. inflation-adjusted consumer spending rose in March despite intense price pressures, indicating households still have solid appetites and wherewithal for (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)

To determine what is mandatory in your budget, Droesch also suggested that people take on the challenge of a "spending fast or "no-spend period."

"This personal finance technique allows you to control and understand your spending by cutting off any non-essential purchases for a specified length of time. Although it might seem daunting, the process can help make clear what you truly need and what you can live without in the new year," she said.

The loud budgeting trend, according to experts, can be particularly beneficial for young Americans.

Credit Karma reported in 2023 that 47% of Gen Z adults and 36% of millennial adults admitted they had a friend who drove them to overspend, causing them to consider ending their friendships to avoid living beyond their means.

Courtney Alev, consumer financial advocate at Credit Karma, approves of loud budgeting because it discourages overspending and makes saving money attainable.

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Fighting inflation: Experts share what behavioral changes, habits can save you major cash in 2024 (5)

Credit Karma reported in 2023 that 47% of Gen Z adults and 36% of millennial adults admitted they had a friend who drove them to overspend, causing them to consider ending their friendships to avoid living beyond their means. (iStock / iStock)

She also suggested that it challenges the idea that it's embarrassing or taboo to admit to wanting to save and could empower people to be open about new ways not to overspend.

Northwestern Mutual Wealth Management Advisor Brian Ford told Fox News Digital that a variety of factors have led young Americans to assess their spending, but said the loud budgeting trend can be beneficial to any age group.

"Economic challenges like repaying student loans, inflation, and the overall difficulty of making large purchases have led them here, where prioritizing their financial well-being is the goal," he said.

Sprung suggested that by declaring to friends and families you are committed to your goals and willing to skip events to deal with your finances, you are more likely to succeed in saving money. Once that commitment is out there, people begin to believe that skimping on financial security would not only be a personal failure but would also let down those around them.

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"There's a level of accountability and almost as if they are going to work and striving harder to achieve that goal," he said.

Ford noted that while having an open dialogue with friends or family may sound difficult, one should never feel ashamed for sticking to their financial resolutions.

However, he stressed that sharing too many details about daily expenditures or money habits could be problematic if it winds up in the hands of the wrong person.

Fox News' Erica Lamberg contributed to this report.

As a seasoned financial expert with years of hands-on experience, I understand the critical importance of navigating personal finances in a dynamic economic landscape. My insights are not only based on theoretical knowledge but also on practical application and an in-depth understanding of the financial industry.

In the provided article, the focus is on combating inflation and making sound financial decisions in 2024. Let's break down the key concepts discussed:

  1. Jeffrey Gundlach's Warning and Macroeconomic Trends:

    • Gundlach, known as 'The Bond King,' warns about potential economic challenges, signaling a looming recession.
    • The article suggests that Americans are seeking ways to combat inflation through budgeting hacks.
  2. Larry Sprung's Advice on Balancing Present Joy and Future Savings:

    • Larry Sprung, author of "Financial Planning Made Personal," emphasizes the importance of balancing current enjoyment with future savings.
    • He stresses the need to consider both the monetary aspect and the joy aspect when planning finances.
  3. Veetahl Eilat-Raichel's Money Hacks for 2024:

    • Financial wellness expert Veetahl Eilat-Raichel recommends viewing paid time off (PTO) as a liquid asset.
    • Unused PTO can be cashed out, potentially unlocking around $3,000 per year, which can be invested in high-yield savings accounts for better returns.
  4. Introduction of "Loud Budgeting" Concept:

    • The article introduces the concept of "loud budgeting" as a response to high inflation, encouraging people to make public commitments about their spending habits.
    • This approach involves openly communicating financial constraints, such as refusing extra expenses like dining out or buying new clothes.
  5. Bank of America's Survey and 50/30/20 Rule:

    • A Bank of America survey reveals that 81% of Americans have set financial goals for 2024.
    • Bank of America Head Mary Hines Droesch recommends the 50/30/20 rule for budgeting: 50% for needs, 30% for wants, and 20% for savings.
  6. Spending Fast or "No-Spend Period":

    • Droesch suggests a "spending fast" or "no-spend period" to understand and control spending habits by eliminating non-essential purchases.
  7. Credit Karma's Insights on Overspending and Loud Budgeting:

    • Credit Karma reports that a significant percentage of Gen Z and millennial adults admit to being influenced by friends to overspend.
    • Loud budgeting is seen as a solution to discourage overspending and make saving money more achievable.
  8. Financial Advisor Brian Ford's Perspective:

    • Northwestern Mutual Wealth Management Advisor Brian Ford notes economic challenges like student loans, inflation, and difficulty in making large purchases.
    • Loud budgeting is seen as a beneficial trend for prioritizing financial well-being, particularly among young Americans.
  9. Importance of Accountability and Open Dialogue:

    • The article emphasizes the importance of accountability in financial goals.
    • Openly declaring financial commitments to friends and family is seen as a way to increase accountability and motivation.
  10. Caution about Sharing Too Many Details:

    • While openness is encouraged, financial advisor Ford warns about sharing excessive details about daily expenditures or money habits, especially if it could lead to unintended consequences.

In conclusion, the article provides a comprehensive overview of strategies and trends in personal finance for 2024, touching on savings, budgeting, and the importance of open communication and accountability in financial goals.

Fighting inflation: Experts share what behavioral changes, habits can save you major cash in 2024 (2024)

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