Falling behind on your savings goals can feel stressful, but it’s not the end of your financial story. Whether you’re approaching retirement or just realizing you haven’t saved as much as you hoped, what matters most is what you do next. With the right strategy, discipline, and mindset, you can catch up and take control of your financial future.
1. Get a Clear Picture of Where You Are
Before you can move forward, you need to understand where you stand. Gather your bank statements, investment accounts, debt balances, and income details. You can’t fix what you can’t see.
At Planning Made Simple, every financial conversation begins with what we call a Base Plan. It’s a clear snapshot of your lifestyle, income, assets, and shortfalls. We look at what’s above ground, meaning your market-based assets, and what’s below ground, meaning your protected assets. This breakdown helps you see where your plan is strong and where you may need to adjust to achieve balance and stability.
2. Focus on the Four Freedoms
True financial success isn’t about the largest portfolio; it’s about achieving freedom. At Planning Made Simple, we define this through the Four Freedoms: Income, Time, Choice, and Purpose.
If you’re behind on savings, begin with the Freedom of Income. How much income do you need to maintain your lifestyle comfortably? What’s the shortfall between your current income and your ideal target? Once you know that number, every decision, whether saving more, adjusting expenses, or shifting investments, should move you closer to closing that gap.
3. Reevaluate Your Investment Strategy
When people realize they’re behind on retirement savings, their first instinct is often to take bigger risks to catch up. But aggressive investing without a strategy can backfire. The goal isn’t just to grow fast; it’s to grow smart.
Review your portfolio and make sure it aligns with your goals, time horizon, and risk tolerance. Consider diversification, income-focused strategies, and dividend-paying investments that can provide steady cash flow while building long-term value. These approaches help create momentum without unnecessary exposure to volatility.
Work closely with a trusted advisor to align your investments with your objectives, not your emotions. In investing, consistency and education matter far more than timing the market or chasing trends.
4. Automate and Increase Your Savings
Catching up requires structure and discipline. The simplest way to stay consistent is to automate your savings. Set up automatic transfers into your savings or investment accounts so money moves before you get the chance to spend it. Even small, regular contributions add up over time.
If possible, increase your savings rate by one or two percent each year. That modest change can translate into tens of thousands of dollars over time. And if you’re 50 or older, don’t overlook catch-up contributions in IRAs or 401(k)s. These higher contribution limits are designed to help you accelerate your progress toward retirement readiness.
5. Stay Focused and Ignore the Noise
It’s easy to get distracted by market headlines or trending investment fads. But successful investors know that execution and patience matter more than quick wins. Stick to your plan, stay the course, and review it regularly with your advisor.
Focus your financial check-ins on life changes, not just market movements. Major events such as a career shift, inheritance, or approaching retirement often have a much greater impact on your financial future than daily market fluctuations.
6. Surround Yourself with the Right People
Financial success is easier when you’re not alone. Join a financial community, accountability group, or coaching program that helps you stay motivated and focused. Sharing experiences with others can keep you encouraged and expose you to new ideas.
If you’re working with an advisor, lean into that relationship. A great advisor doesn’t just manage your investments; they coach, educate, and empower you to make informed, confident decisions about your money.
7. Take Ownership of Your Story
Catching up on savings isn’t just about math; it’s about mindset. You are the hero of your financial story. The best advisors use a co-planning approach, where you actively participate in building your plan. That collaboration helps you take ownership of your goals and understand how every decision shapes your outcome.
Each decision you make, from saving a little more to managing risk better, moves you closer to the life you envision.
Final Thought
Being behind on savings doesn’t mean you’ve failed. It simply means now is the time for action. With a clear plan, consistent habits, and the right guidance, you can rebuild and even thrive.
Your best financial days are still ahead of you. The key is to start now and stay consistent.