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27 Easy Ways You Can Save More Money in 2018

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Resolving to finally pay off a massive pile of debt at the beginning of the new year can seem like a good idea at the time. But then, you may find yourself back where you started months later, having barely made a dent in your goal.

Often, if resolutions are too broad or too lofty (read: unrealistic) from the start, it can actually hurt your chances of seeing them through.

Instead of setting a broad resolution like becoming a money expert, or eliminating a debt worth half your annual income, try starting small.

Making small behavioral changes — or, microresolutions — may help you inch toward financial freedom without taking on too much at once.

A microresolution, as defined by author Caroline Arnold in her book, “Small Move, Big Change,” is a commitment to a limited, specific, and measurable change in behavior or attitude that produces an immediate and observable benefit.

Arnold argues making small behavior changes that can be incorporated into your daily habits — for example, resolving to take a few seconds to check your bank account balance during a lull in your day — can help establish lasting changes.

The following are 20+ small changes you can make to save more and pay down debt this year.

1. Cut one subscription service right now.

 

List all of the subscription services you pay for and cross out one or two that you can stand to lose. Using an app like Mint or a service like Trim can help you identify services more easily — Trim will even cancel them for you. A $10.99 standard Netflix account adds up to over $100 per year and a $14.99 Spotify family plan is nearly $200 per year.

2. Ditch your big bank savings account for an online savings account.

Savings accounts at online banks almost always offer a higher annual yield than those at brick-and-mortar institutions. If you put $1,000 in an Ally online savings account today, you’d earn $12.50 in interest after one year. That same $1,000 in a Bank of America account would only earn $0.10.

Check here to compare the best online savings accounts.

3. While you’re at it, set up a checking account with an online bank, too.

Online banks notoriously carry fewer fees and often reimburse for out-of-network ATM use.  Big banks often charge maintenance fees or require minimum balances to avoid them. Ally Bank, for example, uses ATMs on the Allpoint network, available in most drugstores. Ally also reimburses ATM fees paid during each month up to $10.

Check here to compare the best checking account offers today.

4. Ask payroll to set up a recurring deposit to your savings account.

Automate your savings so you don’t have to think about it. If your employer allows you to split your direct deposit, speak with your human resources department to send a portion of your direct deposit directly to your savings account.

“Commit to make saving money happen without you doing anything,” said Dan Andrews, a Greenwood Village, Colo.-based financial planner. “This makes your lazy behavior happy because you don’t have to do anything after you set up this system.”

5. Don’t withdraw money from ATMs that charge a fee.

Try to pay less money to access your cash reserves this year. Do your best to avoid ATMs that charge a fee. Often, you are charged twice — by both the owner of the out-of-network ATM and your bank just to take out your cash. For example, Bank of America charges its members $2.50 to use out-of-network ATMs and non-members $3.00. Now let’s say the out-of-network ATM you’re using also charges its own $2 fee. You could pay a nearly 10% premium to take out $50 or more if you’re taking out less money.

6. Identify your guilty pleasure and vow to only use cash to pay for it.

If you’re having trouble controlling your spending in a certain area, like restaurants or new clothes, Monterey, Calif.-based financial planner Catherine Hawley recommends limiting yourself to a cash-only budget in that spending category.

“This strategy helps create awareness of how much one’s spending in specific categories. Using cash makes spending tangible,” Hawley said.

For example, take out $50 for the week to spend dining out. If you spend $50 the first day then there’s no more spending in this category until the next week. But, if you can hold on to the cash, you can add it to what you’ll have to spend the following week.

7. Make a list of what you need before you go to the grocery store.

Making a list saves you time and money — preventing impulse purchases once you get to the store and stopping you from buying more food than you need.

8. Call one service provider and ask for a better rate.

If you pay recurring service bills like a cellphone bill, cable bill or wireless internet service, there’s likely somewhere you can save money. Take a few minutes to call up one of these servicers to see if you can negotiate savings.

If you don’t want to risk waiting on the phone for hours or getting bounced around from department to department in the process, you can try a service called BillFixers, that’ll negotiate your bills with your providers for you. The service costs 50% of the amount you save on your bills in the first year, paid to BillFixers upfront or monthly.

9. Aim to bring lunch to work once this week.

According to a 2015 survey commissioned by Visa, Americans spend $2,746 a year on lunch alone. Take the opportunity to redirect that money elsewhere in your budget. For a more challenging task, try setting aside some time once a week to prepare your lunches for work for a day or two in advance.

10. Sign up for a no-brainer savings app like Digit.

A savings app can take the work out of saving money. Digit watches your spending, then uses an algorithm to calculate how much money to transfer to your Digit savings account periodically. In addition, you earn 1% on the fund in your Digit savings account. Transfer your Digit savings to your bank account anytime, for free. Digit is free to start but after the 100-day trial period ends, you’ll be charged $2.99 monthly. You can easily get a better return on your savings by opening an high-rate online savings account. But if you’re not a good saver historically and you think you could benefit from the automation that Digit offers, that fee might be worth it.

Qapital helps you set savings goals and rules to match them. The app goes ahead and transfers money toward your savings goal when the rule, like rounding all of your debit card purchases to the nearest dollar and saving the difference, applies. Qapital does not charge any fee for its service.

11. Carry a reusable water bottle.

According to the Beverage Marketing Corporation, Americans spent nearly $16 billion on bottled water in 2016. If you’re even spending just $3 on water a week, you could still save around $150 this year carrying a reusable water bottle (if you buy the bottle for $6).

12. Increase your retirement contribution by 1%.

Adding even 1% more to your retirement account a year can have a huge impact down the line. According to the Economic Policy Institute, “nearly half of working-age families have nothing saved in retirement accounts.”
Your employer’s 401(k) administrator might offer a way to automatically increase your contributions by 1-2% each year. Or you can do it yourself in about five minutes by logging in to your account.

“This is a great way to increase savings consistently without any hassle,” said Hawley. “If you are not maxing out your 401(k) already increasing contributions is important.”

13. Check your retirement allocations.

Take a peek at how your retirement money is being invested. Resolve to take a few minutes this year to check your retirement allocations to make sure they still make sense for your age. A common rule of thumb for making sure the investment risk you’re taking matches your age is holding a percentage of stocks equal to 100 minus your age.

The remainder should be invested in lower-risk investments like bonds and government debt. For example, someone who is 60 years old should have 60% of his investment in the stock market, and 40% invested in safer investments.  If you’re more aggressive, subtract your age from 110.

14. Dedicate 5 minutes to reviewing your finances at the end of the day.

Pick a time of the day when you’ll know you have a few minutes to spare (after work when you’re catching up on Netflix?) and review your recent spending. Use your bank’s mobile app or money-tracking apps like Mint or YNAB. Regularly going over your recent transactions helps you stay on top of your spending and savings goals, and give you the opportunity to evaluate your spending decisions.

15. Calculate your net worth.

Your net worth is one of the most important numbers to know in life because it’s is the best way to understand your financial health. Knowing how much you are worth helps you track your debt paydown progress and keeps your debt-to-income ratio in check.

Your net worth is easy to calculate. Your net worth is the number you end up with when you add up how much you own — assets like your 401(k), or investments in the stock market, or the current value of your home — and subtract how much you owe —  like credit card debt, student loan debt, an auto loan, or what you owe on your mortgage.

16. Automate your monthly credit card payments.

Out of sight, out of mind isn’t always a great approach to take with your finances. That being said, taking a few minutes to automate your credit card payments may help you avoid the sting of paying your debts each month. It also helps to avoid late payments, if they have been an issue for you in the past.

17. Set reminders to pay your bills on time.

It can be tough to keep all of your due dates straight when you have several bills due at different points throughout the month. Do yourself a favor and look up the due dates of all of your recurring bills, then put them into your phone’s calendar and set a notification to alert you when the bill is due. This task should take all of about 30 minutes if you decide to do all of your bills at once.

18. Pay more than the minimum on one of your debts each month.

Debt can be overwhelming. Start small. Choose one of your debts and vow to pay more than the minimum amount due to your lender.

The average American household carries about $6,416.15 of credit card debt. Using MagnifyMoney’s credit payoff calculator, we found that if the household were to a pay minimum $143 per month, it would take more than five years to pay off the debt. In that time, they would also pay $2,967 in interest, assuming the card charges 15% APR.

19. Check your credit score.

Take a minute or two to check up on your credit health this year. Try any of these online and mobile resources you can use to check your credit score for free.

Keeping up with your credit score on a regular basis helps give an idea of where you stand as a borrower, which is important when it comes time to apply apply for a new credit card or other loans. It also helps you stay on top of signs of fraud, like unexpected changes to your credit history.

The stronger your credit score is, the better terms you’ll get the next time you apply for a loan, like an auto loan or mortgage. And scoring a lower rate can mean huge savings on interest over time.

20. Choose one debt to pay down first.

Prioritize your debt by choosing specific debt to tackle first. Here are two ways to do that:

  • Prioritize the debt with the lowest balance and work to pay it down first — achieving small wins early on will help build the momentum you need to tackle bigger debts.
  • Prioritize the debt with the highest APR and work to pay it off first — you’ll save money in the long term by attacking the costliest debts first.

Once you’ve chosen your top priority debt, throw everything you have at it while making minimum balances on the rest.

21. Apply for a 0% promo intro APR balance transfer credit card offer.

If you’re working to pay off a substantial amount of credit debt, take a few minutes and apply for a 0% promo intro APR balance transfer credit card. If you get approved, you could avoid paying a high interest rate on some or all of your debts for the promotional 0% period the card offers. Beware: The lender may charge a fee, usually 3-5% of the amount you transfer, for the service.

For example, if you avoid paying interest on a $2,000 debt on a card that charges a 15% APR for 12 months, you avoid paying back nearly $180 in interest charges.

22. Shop for auto loan refinance offers.

Take 10 minutes to see if you can save money on your auto loan this year. Refinance your auto loan on more favorable terms to get your payment under control. You could get a loan with a lower interest rate or a longer loan term to reduce your monthly payment.

23. Call at least one lender to negotiate your interest rate.

If you are stretched paying student loans, an auto loan, or even credit card debt, and have a good track record as a borrower, it may behoove you to call your lender and ask to negotiate a lower interest rate. The longer you carry debt, the more it earns in interest. If you are currently carrying debt month to month, lowering your interest rate may help you get out of debt faster by reducing how much interest you are charged on the remaining balance.

24. If you’re badly behind your debts, call to see if they’ll negotiate.

If any of your debts are outstanding, prioritize eliminating one of them today. You have much more flexibility in paying off long-outstanding debts than you may believe. Few know they can negotiate debts in collections, and by doing so they can save as much as 75%.

Those are significant savings. Set aside half an hour one day soon to call up the collections agency, or any business where you may have debt outstanding, and see if you can negotiate down the amount owed. At the very least, you’ll get the opportunity to work out a payment plan to pay off the debt.

25. Unsubscribe from promotional emails.

If you’re always tempted to follow the links on promotional emails you receive each week from your favorite retailers learn to delete the emails right away or, even better, unsubscribe from them all together.

“The less you look, the less you may click the “purchase” button,” said  Rose Swanger, a Knoxville, Tenn.-based financial planner.

26. Download a budgeting app.

If tracking your spending seems a little overwhelming, download an app that will do it for you. You Need a Budget is a longtime favorite for not just tracking spending but aligning your spending with your savings goals; and we recently reviewed the Honeydue app for couples looking for an easy way to track their household spending. If you don’t have a smartphone, many of these services have a web version.

27. Read one personal finance book.

Commit to reading just one book on personal finance this year. Browse your local library, the personal finance section on Amazon, or your local bookstore to find a book that stands out to you. If reading isn’t your thing, you may be able to purchase an audio version to listen to during your commute.

Some options:

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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10 Great Free Checking Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

The humble checking account may not offer rewards, cash back or many of the other perks offered by ritzy credit cards, but it remains the cornerstone of your financial life. Nobody likes paying monthly maintenance fees, so why not pick a free checking account that does away with them altogether?

Below, we’ve selected nine of the best free checking accounts by scouring our database for products meeting the following criteria:

  • No monthly maintenance fee
  • A low initial deposit amount (between $0-$50) needed to open the account
  • No minimum balance requirement
  • Minimal third-party ATM fees
  • Available nationwide

10 bests free checking accounts of March 2020

Account Name

Minimum needed to open

APY

Consumers Credit Union (IL) Free Rewards Checking$05.09% (applies to balances up to $10,000)
TAB Bank Free Kasasa Cash Checking$04.00% (applies to balances up to $50,000)
T-Mobile Money$04.00%(applies to balances up to $3,000)
One American Bank Kasasa Cash Account$503.50%(applies to balances up to $10,000)
Evansville Teachers FCU Vertical Checking$30 ($25 if you're already a member of this credit union)3.30% (applies to balances up to $20,000)
Lake Michigan Credit Union Max Checking$03.00%(applies to balances up to $15,000)
Andigo Credit Union High-Yield Checking$03.00% (applies to balances up to $10,000)
Simple Account$00% to 1.55% on balances in Protected Goals
Axos Bank$501.25% (applies to balances up to $150,000)
SoFi Money$01.10%

Consumers Credit Union (IL) Free Rewards Checking

The Consumers Credit Union provides an online-only Free Rewards Checking account to anyone in the nation who becomes a member. You can qualify for membership with a one-time $5 payment to Consumers Cooperative Association. Perks of the account, which charges no monthly maintenance fees and requires no minimum balance, include unlimited third-party ATM fee refunds.

However you do have to meet some requirements in order to get all of the benefits of the account (including the high APY). The APY for this account is divided into three tiers, with the lowest earning 3.09%, the middle 4.09% and the highest tier 5.09%. The requirements for each of these tiers are:

To earn 3.09%

  • Receive eStatements
  • Make at least 12 debit card purchases a month
  • Post direct deposits or ACH payments of at least $500 each month

To earn 4.09%

  • Meet all the requirements of the previous tier
  • Have a Consumers Credit Union Visa credit card and spend at least $500 a month on it

To earn 5.09%

  • Meet all the requirements of the previous tier
  • Spend at least $1,000 a month on your Consumers Credit Union Visa credit card

Keep in mind these high APYs only apply to balances up to $10,000. The portion of any balance between $10,000.01 and $25,000 earn 0.20% APY, and balances greater than $25,000 earn an APY of 0.10%.

SEE DETAILS Secured

on Consumers Credit Union (IL)’s secure website

NCUA Insured

TAB Bank Free Kasasa Cash Checking

Headquartered in Ogden, Utah, TAB Bank offers a great rate on its Free Kasasa Cash Checking account. Developed by the Kasasa Corporation, a Texas-based financial services and marketing organization, Kasasa accounts help smaller banks compete against larger rivals by providing higher rates.

TAB’s account charges no fees for using third-party ATMs, and reimburses up to $15 in third-party ATM fees per month. There are no fees and no minimum balance requirement for this account, but to earn 4.00% APY reward rate, every month you must:

  • Deposit at least one ACH payment or direct deposit, or make one bill pay transaction
  • Make at least 15 signature-based debit card purchases of at least $5 each

If you don’t qualify in any given month, your balance earns 0.05% APY, and third-party ATM fees are not refunded. You can earn the reward rate APY on balances up to $50,000, which is well above the other maximum balances on this roundup. Balances greater than $50,000 earn an APY of 0.25%.

SEE DETAILS Secured

on TAB Bank’s secure website

Member FDIC

T-Mobile Money

Wireless carrier T-Mobile is venturing out into new territory with a financial product – a competitive one, too. T-Mobile Money is a new checking account that pays a 4.00% APY on balances up to $3,000. Balances over $3,000 earn an APY of 1.00%. There are no monthly fees, overdraft fees, transfer fees, ATM fees or minimum balance requirements.

In order to receive the 4.00% APY, though, T-Mobile Money does require the following:

  • Enroll in a qualifying T-Mobile wireless plan
  • Register for Perks with your T-Mobile ID
  • Make at least $200 in qualifying deposits to your checking account in the calendar month

Balances that do not meet these requirements, or balances over $3,000, will earn 1.00% APY.

SEE DETAILS Secured

on T-Mobile Money’s secure website

Member FDIC

One American Bank Kasasa Cash Account

This small community bank, based in Sioux Falls, SD, offers a nationally available Kasasa Cash checking account that earns a decent 3.50% APY on balances up to $10,000. You need a minimum of $50 to open the account, but after that all you need to do to earn the very competitive APY of 3.50% is:

  • Make at least 12 debit card purchase transactions a month of at least $5.00 each
  • Receive electronic bank statements, account notices and disclosures
  • Log in to online banking at least one time a month

If you meet these qualifications, One American Bank also refunds up $25 in third-party ATM funds per month.

SEE DETAILS Secured

on One American Bank’s secure website

Member FDIC

Evansville Teachers Federal Credit Union Vertical Checking

Don’t let the name of this credit union fool you—anyone can become a member if they open a $5 savings account, which then allows you to open a Vertical Checking account.

This free checking account doesn’t charge a monthly service fee or require you to maintain a minimum balance, and in return gives you an APY of as high as 3.30% on balances up to $20,000, provided you fulfill the below requirements:

  • Make at least 15 debit purchases each month
  • Make at least one direct deposit into the account each month
  • Login to your mobile or online banking at least once each month
  • Opt in to receive eStatements
  • In addition to the high APY, meeting these requirements entitles you to $15 a month for reimbursing third-party ATM fees.

In addition to the high APY, meeting these requirements entitles you to $15 a month for reimbursing third-party ATM fees.

SEE DETAILS Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

Lake Michigan Credit Union Max Checking

Despite its name, the Lake Michigan Credit Union is open to anyone who makes a $5 donation to the ALS Foundation. That small donation can pay off tenfold with the credit union’s Max Checking account, which features a 3.00% APY on balances up to $15,000. The account also has no minimum balance requirements and no monthly fees.

In order to receive the 3.00% APY, you must:

  • Direct deposit into any LMCU account
  • Make a minimum of 10 debit or credit card transactions per month
  • Make 4 logins to home banking per month
  • Sign up for e-statements

The Lake Michigan Credit Union’s Max Checking account also offers up to $10 in monthly reimbursements for non-LMCU ATM fees.

SEE DETAILS Secured

on Lake Michigan Credit Union’s secure website

NCUA Insured

Andigo Credit Union High Yield Checking

Another credit union with a competitive checking account is the Andigo Credit Union High Yield Checking account. With a handful of physical branches in Illinois and mobile banking services, Andigo Credit Union is open to anyone who makes a $15 donation to ConnectVETS.

Andigo’s High Yield Checking account features a 3.00% APY on balances up to $10,000, has no monthly fees, no minimum balance requirements and $12 a month in ATM surcharge rebates. However, to take advantage of the 3.00% APY, you must:

  • Have $500 or more in total direct deposit
  • Make 15 or more debit card purchases per month

Accounts that do not meet those qualifications earn a 0.06% APY. Balances above $10,000 earn 0.10% APY.

SEE DETAILS Secured

on Andigo’s secure website

NCUA Insured

Simple Account

Another online-only account, Simple is owned and backed by regional bank BBVA Compass and offers customers a checking account that’s intertwined with the app’s Protected Goals savings account, and additional budgeting tools. Simple doesn’t charge any fees, meaning users enjoy:

  • No monthly maintenance fee
  • No minimum balance needed
  • No account closing fee
  • No stop payment fees
  • No debit card replacement fee
  • No ATM fee if using Simple’s network, but users can be charged a fee by other banks if using a non-network ATM

One fee you do have to pay is a foreign transaction fee when using your Simple card internationally, which can be up to 1% of the transaction.

As a cash management product, the Simple Account automatically comes with a savings account feature. While the checking balance in a Simple Account earns a token 0.01% APY, Simple’s Protected Goals savings balances earn an APY of 1.55%.

SEE DETAILS Secured

on Simple’s secure website

Axos Rewards Checking

With a generous APY and no fees, online bank Axos offers a checking account that stands apart from the pack. Axos’ Rewards Checking account boasts an APY ranging from 0.4166% to 1.25%, depending on your balance and how many monthly transactions you make with your debit card. The account has no maintenance fees and no monthly minimum balance requirements, however there is a required $50 to open an account.

Axos says it does not charge overdraft or NSF fees for customers of its Rewards Checking account. The bank also offers overdraft protection, and will transfer available funds from a linked account, up to a maximum of six times per month.

The Axos Rewards Checking account’s other standout features include:

  • Unlimited domestic ATM fee reimbursement
  • No overdraft or NSF fees plus overdraft protection

SEE DETAILS Secured

on Axos Bank’s secure website

Member FDIC

SoFi Money

SoFi may be better known for its personal loan products, but its SoFi Money cash management account offers a great free checking experience. This account earns a decent 1.10% APY with fees and no minimum balance requirements. SoFi charges no ATM fees of its own, and it will reimburse you for any third-party ATM fees you are charged anywhere in the world. If you need physical checks, you can request them from SoFI.

SoFi partners with multiple banks to hold your money in FDIC-insured accounts. This means that SoFi Money accounts are FDIC insured on balances up to $1.5 million in total, well above the standard $250,000 FDIC insurance level available with conventional accounts.

SEE DETAILS Secured

on SoFi’s secure website

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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38% of Investors Are Worried They’ll Lose Retirement Savings Amid the Coronavirus Pandemic

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

As the coronavirus (COVID-19) pandemic brings the world to a screeching halt, one of its many detrimental effects is its impact on the stock market. With businesses shuttering, unemployment spiking and economic fears rising, the stock market has been hit hard, with multiple indexes plunging to new, multi-year lows in March.

Such a significant decline has taken a toll on individual investors, too. According to a new survey of over 1,000 respondents by MagnifyMoney, 38% of investors fear they’ll lose all of their retirement savings due to the economic turmoil caused by the pandemic. Already, the coronavirus outbreak has caused investors to lose money and alter their investing behavior, our survey found.

Key findings

  • Our survey found that 38% of investors are worried they’ll lose all of their retirement savings because of the coronavirus outbreak.
  • About 59% of investors said they’ve already lost money from investments during the pandemic (this does not include the 26% of respondents who weren’t sure if they had lost money).
  • The majority of the investors surveyed (39%) said they’re avoiding looking at their investment portfolio amid the coronavirus pandemic. On the other hand, 26% said they are “constantly” checking their investments.
  • Roughly 45% of surveyed investors said they had made changes to their portfolio in the last two weeks, as the coronavirus spread throughout the U.S. and across the world.
  • More than 1 in 10 investors said they’ll never feel comfortable with the stock market again, though 29% said they still feel comfortable. Other investors said they’d need to see some positive signs before they felt comfortable again.
  • When asked how the coronavirus will affect their future investing decisions, 55% of investors said it would impact them in some way (this percentage does not include the 13% who weren’t sure). Most notably, 29% will decrease their level of risk, 23% will make sure they have plenty of money outside the market and 21% will further diversify their portfolio.
  • Still, the vast majority of investors (78%) are confident the stock market will recover from the decline associated with the coronavirus. Only 8% don’t think the stock market will recover in their lifetime.

How much investors have lost amid the coronavirus pandemic

With markets swinging wildly and diving to new lows, investors have understandably lost money in the wake of the coronavirus pandemic. In fact, our survey reveals that the majority of investors (59%) have lost money — a figure that did not include the 26% of investors who were not sure if they had.

The bulk of investors who have lost money during the coronavirus outbreak, though, have lost less than $50,000, with 26% saying they lost less than $10,000, 12% saying they lost between $10,000 and $24,999 and 8% saying they lost between $25,000 and $49,999. However, some investors are reporting hefty losses, with 4% losing between $50,000 and $74,999 and 10% losing a staggering $75,000 or more. Meanwhile, our survey found that 15% of investors haven’t lost any money and 26% don’t know how much they have lost.

What’s arguably more alarming, though, is the sheer amount of investors (38%) who said they fear they have lost all of their retirement savings as fallout from the coronavirus pandemic continues to ravage the markets. While that percentage was fairly consistent across generations, it was highest among those in Generation Z. Nearly half (47%) of Gen Z worried their retirement savings would be completely wiped out, compared to 40% of millennials, 45% of Gen Xers and 30% of baby boomers.

One potential reason for the gap in concern between Gen Zers and baby boomers is that younger generations likely have far smaller nest eggs than their boomer counterparts, meaning it wouldn’t take as much market volatility to wipe out their retirement savings.

How the coronavirus pandemic is impacting investor behavior

As the coronavirus pandemic continues to batter the economy, our survey found that many investors (39%) are choosing to avoid checking their portfolios altogether. Meanwhile, 35% of respondents said they are looking at their portfolios occasionally, while 26% said they are checking in constantly.

Of those who are shielding themselves from watching their portfolios plummet, many are baby boomers. Our survey revealed that almost half of baby boomers (48%) are steering clear of checking their portfolio right now, compared to 37% of Gen Xers, 35% of millennials and 27% of Gen Z.

Despite the fact that many investors are opting against looking at their portfolios during this turbulent time, some are still making changes to their investing behavior in response to the coronavirus outbreak. Our survey found that while the majority of investors (55%) have not made any changes in the last two weeks, 19% have taken some money out of the stock market, 18% have reduced their level of risk, 9% have changed the type of stocks they’re investing in and a surprising 8% have taken all of their money out of the stock market.

How the coronavirus pandemic will influence future investing decisions

Stock market ups and downs are par for the course when it comes to investing, and our survey suggests that even the coronavirus pandemic’s impact on the stock market isn’t enough to have a lasting effect on the confidence of many investors. In fact, we found that the majority of investors (78%) think that the stock market will recover from the drop associated with the coronavirus pandemic.

Still, 8% of investors said they don’t think the stock market will ever recover in their lifetime, while 15% investors said they didn’t know if it would. It’s worth highlighting, too, that Gen Zers were far more likely (18%) than any other generation to not have faith that the stock market will make a recovery in their lifetime.

While we did find that most investors are confident that the market will recover from the drop associated with the pandemic, that confidence doesn’t necessarily translate to comfort. In fact, our survey found that 11% of respondents said they will never again feel comfortable with the stock market, which could impact how — and whether — they invest again in the future.

Meanwhile, 29% of investors said they still feel comfortable with the stock market during these turbulent times, though most investors said they’d need to see the following major changes to feel comfortable again:

  • 32% said that the Dow Jones would need to show positive growth
  • 29% said that the number of COVID-19 cases would need to significantly decrease
  • 20% said that news coverage of the stock market would need to turn more positive
  • 19% said the government would need to inject a stimulus into the stock market
  • 10% said they would need their financial advisor to tell them it’s okay

Aside from rattling investor confidence, our survey reveals the coronavirus outbreak could have lingering effects on investor behavior in the future. Only 32% of investors said their future investing decisions won’t be impacted by the coronavirus pandemic. Meanwhile, 29% said it will cause them to decrease their level of risk, 23% said that it would cause them to make sure they have enough money outside of the stock market and 21% said it will cause them to diversify their portfolio more. A striking 4% said they may not invest anymore.

What you should do when the stock market is dropping

When the stock market is taking multiple nose-dives as it has been recently, it’s understandable to feel uneasy. It’s important to remember, though, that investing is a critical component of building a healthy financial life, and stock market declines are par for the course.

In fact, market corrections — which is when the stock market drops 10% or more from its most recent high — happen every few years. Factoring in all corrections, the S&P 500 still has an average annual rate of return of around 10% over the longer term.

During times of turbulence, money moves you can make include:

  • Keeping your emotions in check when looking at your investment portfolio
  • Avoid pulling your money out of a declining market on impulse
  • Making sure you have a solid emergency fund in a liquid savings account
  • Considering a more conservative portfolio allocation if you’re closer to retirement and therefore have a shorter timeline

Methodology

MagnifyMoney conducted an online survey of 1,010 investors, with the sample base proportioned to represent the overall population. We defined generations as the following ages in 2020:

  • Gen Z are ages 18 to 23
  • Millennials are ages 24 to 39
  • Gen X are ages 40 to 54
  • Baby boomers are ages 55 to 74
  • Silent generation are age 75 and older

The survey was fielded through Qualtrics from March 18-19, 2020.

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