Surviving the Financial Vortex: 5 Ways to Find Calm in the Swirl of Serious Financial Competition

A “financial vortex” refers to a set of competing financial priorities and life events that make it difficult for many people to save for long-term goals such as retirement.

The Struggle to Save is Real

According to the 2024 Goldman Sachs Retirement Survey, 67% of Americans report that monthly expenses, financial difficulties, and unexpected events such as medical emergencies or family support obligations are the main reasons they find it difficult to save. This “vortex” pulls people in different directions, making it difficult to stay on track with retirement and other important financial goals.

Five Steps to Lower Your Financial Vortex

Maybe you feel overwhelmed, but you can escape the financial crisis and build long-term financial stability.

Here’s how:

1. Follow the Savings Playbook

Not knowing where to focus is a common feeling for those in financial situations. It can be difficult if you are pulled in many directions without a clear idea about what to do.

Many financial experts recommend a savings playbook as a way to prioritize how you spend your money.

This approach helps ensure that you are spending your money in the most impactful way possible.

• Start with an adequate emergency fund to cover the unexpected. Emergency savings are the foundation of financial security. Ideally, you have at least three months’ worth of expenses available to help you deal with unexpected events such as job loss, home renovations, or major medical debt.
• Then you’ll want to save enough in your employer’s retirement savings plan to capture the employer’s match. This is free money.
• The third priority is to pay off any high interest debt you have.
• The fourth is to put a large amount of money into a Health Savings Account, if you have one.
• If you still have funds available, you should contribute more to an IRA. (Use the Boldin Planner to check whether you’re better off saving in a traditional or Roth account.)
• Next, you’ll want to put a premium on your employer’s plan.
• The seventh step in the savings playbook is to contribute to another after-tax account such as a 529 if appropriate.
• Finally, pay off low-interest debt, such as a mortgage.

2. Have a Written Financial Plan

Having a written financial plan is essential to dealing with financial challenges. The plan gives you a clear direction and helps you stay focused on long-term goals. Goldman Sachs’ 2024 Retirement Survey found that people with a written financial plan are more likely to be confident about their financial future and reach their goals.

A good plan includes budgeting, setting goals, and dealing with potential risks, such as emergency expenses or market downturns. It gives you direction and allows you to weather financial storms without being thrown off track.

Get started now with Boldin Planner.

3. Start Small with Small Financial Habits

Big financial goals can sound daunting, but starting small is the key to success.

Adopting small financial habits—like saving $10 a week, reviewing your budget every month, or paying more toward debt—can make a big difference in the long run. These small actions, if practiced consistently, help build positive financial momentum without overwhelming you. Behavioral finance research from Duke University highlights how small, incremental financial behaviors lead to lasting financial change.

4. Set Goals and Prioritize Your Future

It’s easy to focus on short-term costs, but prioritizing your future ensures long-term success. According to the Fidelity Retirement Study, people who prioritize their future by regularly saving for retirement are more likely to retire comfortably and on time.

Setting clear financial goals is one of the most effective ways to prioritize your future. Goals give you direction, help you stay focused, and allow you to track your progress. Start by defining short-term and long-term goals, such as building an emergency fund, paying off debt, or saving for retirement. Break these big goals down into smaller, manageable steps.

5. Find Great Savings Opportunities

If you want to know how to save a lot of money but don’t know how to change it, check out these 23 saving tips. You may find a strategy that won’t reduce much. And if you start habits like these, sooner rather than later, they can make a big difference in your retirement.

Use the Boldin Planner to Navigate Your Financial Vortex

The financial vortex may seem overwhelming, but following a structured savings playbook, creating a written financial plan, implementing small financial habits, and focusing on long-term goals can help you relax. Start small, stay consistent, and keep your future in mind. By doing so, you will navigate the vortex with ease and build a secure financial foundation for years to come.

I’m not sure? Try any of these “what if” strategies in the Boldin Planner and see the impact on your future.