Surveys are always suspicious in my opinion … even though I rely on them from time to time. 😎.
In this case with the added stress and risk of the pandemic, thinking short-term is understandable. What you have routinely done is not available, the news good and bad seems to change hourly, planning for that next vacation is so questionable, it’s no fun.
Humans tend to think in the short term most of the time, 2020 is making it worse.
More than one-third, 38%, of people say they’ll be in “survival mode” in 2021, according to Fidelity Investments’ annual New Year Financial Resolutions Study released Tuesday. Survival mode entails being focused “on the day-to-day as I try to get myself and/or my family through the next year,” the poll of more than 3,000 people said.
The older the participant, the more likely they feel this way: 43% of baby boomers (age 56-74) said they will enter 2021 in survival mode, while 34% of millennial-age participants (age 24-39) said the same. “Unfortunately, our ability to see the big picture is severely limited when we’re in fight-or-flight mode,” said Andy Baxley, a Chicago-based financial planner at The Planning Center. “This can lead to choices that seem to make sense in the heat of the moment, but have the potential to cause significant harm in the long run,” he added.
Getting out of “survival mode” starts with trying to envision what your life will look like a year from now, and asking what changes need to happen to feel more secure, Baxley said. “Next, I encourage people to think of one thing that is relatively easy to accomplish and will have a meaningful impact in moving them forward in the right direction. Sometimes, one small step is all it takes to start building momentum,” he said.