'Don't Dwell on the Past': A Quick Guide to Recovering From Financial Setbacks

It takes courage to accept financial problems and identify what's gone wrong. The good news? You don't have to solve everything overnight, and you can start small.

By Adam Coarts, Alex Duffy Reviewed by Charlotte Gorbold

Published 15 September 2026 In Features

A young man looks thoughtful as he looks out the window. — (Image credit: Getty Images)

We've all made at least one financial mistake we wish we could undo. For some, it's an over-reliance on credit cards. Others may wish they'd set more money aside for emergencies.

According to a report from the TIAA Institute, 76% of current retirees say they regret not starting to save earlier in their lives and 71% wish they'd saved more.

Whatever the case may be, we all experience financial setbacks. The key to getting back on track depends on how we approach the recovery.

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1. What just happened?

Financial recovery starts with an honest look in the mirror. And it's easier said than done. Confronting debt, savings setbacks or feeling like you've missed important financial milestones is uncomfortable. But pretending the situation doesn't exist isn't going to solve it.

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The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Take time to evaluate what's happened. What triggered the financial changes? An unexpected emergency expense? A sudden job loss? Spending habits that gradually spun out of control?

Understanding what caused things to take a turn can make it easier to figure out what needs to change moving forward. Identifying the problem allows you to begin finding the solution.

2. Start small

As you're working to turn things around, it can be easy to feel like you have to solve everything overnight. Remember: These problems weren't created overnight, so start small.

Setting up automatic transfers to a savings account, paying off one debt at a time or reducing a few monthly expenses are all great places to start. These changes may seem minor, but consistency is key.

Building better habits creates momentum, making larger goals feel more achievable. As time passes, the plan can be changed to keep up with the different phases of your life.

3. Adapt and adjust

When it comes to financial recovery, many people believe they can simply make a plan, set it and forget it. But life is constantly evolving and your plan should be able to adapt. Unexpected expenses, income changes and new priorities all happen more than once.

Instead of seeing these moments as failures, view them as opportunities to make changes and move forward. It's not about following the original plan exactly — it's about remaining consistent in pursuing your long-term goals even when the route changes course.

Financial plans aren't meant to be rigid. They're meant to grow alongside your life. The next time something comes along and alters your circumstances, identify what's changed, understand how it's impacted your goals and make the adjustments needed to bounce back.

4. Don't dwell on the past

Recovering from a financial setback isn't easy. But it doesn't have to happen overnight and you aren't expected to do it alone. If you're not sure how to adjust your plan or choose your next steps, work with a trusted expert to get professional guidance and accountability.

As you go through the process, don't dwell on past mistakes. What's important is taking action to get back on track.

Alex Duffy has been in the customer service and financial services industry since 1999. His expertise spans loans, debt consolidation and comprehensive financial planning, emphasizing smart money management and family protection.

Adam Coarts is the owner and senior agent at Goldfinch Financial Group in Des Moines, Iowa. He formed Goldfinch Financial Group to better serve clients as an independent financial professional.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Alex Duffy has been in the customer service and financial services industry since 1999. His expertise spans loans, debt consolidation and comprehensive financial planning, emphasizing smart money management and family protection. Alex is dedicated to helping individuals navigate healthcare options, achieve financial security and plan for a dignified retirement.