It's never too late to put your finances in shape

The goal with saving and investing is to start moving in the right direction and stay consistent. Gary Clement for The National

Have you looked at your financial situation and felt a knot in your stomach? Maybe you've been putting off organising those scattered investment accounts, or you know your savings rate (the amount you invest each month) isn't where it should be. Perhaps you've glanced at a friend's retirement balance and wondered how you fell so far behind.

If this sounds familiar, you're not alone. We see this every day. The good news is that it's never too late to improve your financial position. No matter where you are right now, a few focused improvements can transform your situation faster than you might imagine.

Start small, build momentum

We suggest that you approach financial fitness the same way you'd approach physical fitness. You wouldn't expect to go from sitting on the couch to running a marathon overnight. That would be unrealistic and probably leave you injured or discouraged.

Instead, you'd start with small, manageable steps. You’d start with a 10-minute run. Then 15 minutes. Then, you’d maybe add some strength training. Before long, those small actions compound into something significant.

Your finances work precisely the same way. The goal isn't to become perfect overnight. The goal is to start moving in the right direction and stay consistent. Small steps compound quickly when you stick with them. We make starting harder than it needs to be.

Life happens

Sometimes being in the professional grind demands everything you have. Sometimes family needs take priority. Sometimes you're dealing with health issues or other challenges that push financial life management to the back burner.

That's completely normal. However, just because you've fallen behind doesn't mean you're stuck there permanently.

Fortunately, you don't need to overhaul your entire financial life in one weekend. You need to take the next right step. Even small actions create forward movement.

Remember, slow progress beats no progress every time. The person who saves an extra $200 a month for five years will be in a dramatically different position than the person who kept meaning to “get organised” but never did.

We see a common pattern with clients. We work together on a few improvements, optimise, let those changes settle in, then tackle the next area.

You might start by consolidating those old pension accounts scattered across previous employers. This simple step often reduces fees and makes your investments easier to monitor. Once that's organised, you might increase your monthly savings by setting up an automatic transfer. After that becomes routine, perhaps you review your investment allocation.

These aren't dramatic changes, but they add up quickly. When you consolidate accounts and create clear systems, you gain mental clarity. You start to feel “caught up” rather than constantly behind. This confidence often motivates further improvements.

One step at a time

We've learnt from working with many globally minded, successful families that a few short seasons of focused improvement can completely transform your financial position. We've seen people go from feeling concerned about retirement to feeling confident about their future, often in just two to three years.

If you're feeling behind or overwhelmed, take heart. Small, consistent actions compound faster than you expect. The next few years could look dramatically different if you start moving forward today.

Whether you need help consolidating accounts, increasing your savings rate, or getting organised, you can also reach out for professional support, ideally from a certified fiduciary. The first step is often the hardest, but it's also the most important. Are you ready to take it?

Sam Instone is co-chief executive of wealth management company AES