How to Catch Up Financially If You’re Feeling Behind

Feeling like you’re financially behind in life can be overwhelming and disheartening, but the good news is that with the right mindset and actionable steps, it’s possible to bounce back and regain control. Whether you’re starting over after a major life event, rebuilding your finances, or simply trying to catch up to where you feel you should be, there are strategies that can help you create momentum toward financial stability and success.

Start with a Clear Vision

The first step is to write a vision for your life. It may sound abstract, but having a clear picture of the life you want to live can serve as both a foundation and a motivator for your financial goals. Vision boards, goal-setting activities, or even journaling can give you clarity. If you’re unsure where to start, my new “The Designed Life” guide can provide structured prompts to help you outline your vision, identify your unique talents, and align your goals with your values.

⬇️ Download “The Designed Life” Guide Now

Create a Financial Plan

Once you have a vision, the next step is to outline a financial plan. Consider using resources like Dave Ramsey’s Total Money Makeover to guide you. Focus on paying down debt, building your asset base, and growing your net worth to become financially independent. Tailor these strategies to fit your unique circumstances, keeping the ultimate goal of financial independence in mind.

Consistently Track Your Progress

Regularly tracking your financial progress can help ensure you’re staying on course. Tools like the Empower app (formerly Personal Capital) can provide a comprehensive overview of your finances, from debt repayment to net worth growth. Monitoring your progress monthly, quarterly, or yearly keeps you accountable and allows you to pivot if needed.

⬇️ Download the Empower App Now

Prepare for the Future

Estate and healthcare planning are crucial for financial security. Ensure you have a simple will in place and consider term life insurance for peace of mind. If you’re unable to work with an attorney immediately, there are affordable and accessible templates and online services to get the basics done until you’re able to invest more in estate planning.

Resource: Online notary services

Additionally, secure adequate healthcare coverage, whether through employer-sponsored plans, the open market, or medical sharing ministries like Medi-Share.

⬇️ Explore Medi-Share Health Care Plans

⬇️ Explore Travel Health Insurance Plans

Diversify Your Income

One of the fastest ways to catch up financially is by increasing your income streams. From side hustles and freelancing to real estate and online business ventures, there are countless opportunities to boost your cash flow.

If you’re exploring real estate, consider strategies that require little upfront capital, like house hacking or purchasing properties abroad where costs may be lower.

⬇️ Download 17 Creative Ways to Become a Homeowner Now

Explore Geoarbitrage

Geoarbitrage, or relocating to an area with a lower cost of living while maintaining income in a higher-value currency, can be a game-changer. Whether moving to a more affordable state or relocating internationally to countries like Panama or the Dominican Republic, this strategy can accelerate your path to financial independence. Research and planning are key, but the savings and opportunities for investment can be significant.

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Stay Hopeful and Persistent

Finally, the most important component of catching up financially is maintaining hope and persistence. Life’s challenges may set you back temporarily, but you have the power to rewrite your financial story through determination and consistent effort. Surround yourself with resources, stories, and communities that encourage you to stay the course.

Remember, with the right strategies and a commitment to action, you can build a stronger financial foundation and move toward the life you’ve envisioned. Check out my latest eBook “Real Estate by Faith,” to further inspire and guide you on your financial recovery journey. Stay focused, and never give up!