Slippage in Your Savings Goals

Slippage in Your Savings Goals

One of the common challenges I see is savings slippage: families don’t increase their savings rate in line with annual compensation increases.

Even though most 401(k) contributions are set as a percentage of pay (until you begin maxing out), savings outside of your employer plan often stay flat year after year despite raises, bonuses, or promotions.

January is an ideal time to reset.
That’s when new benefit elections take effect and year-end raises typically show up in your paycheck. It’s also the perfect time to revisit savings that happen outside your 401(k).

Pay Yourself First, Automatically

My preferred approach is simple and effective: Pay Yourself First, using automation.

For each goal, set up a recurring automatic transfer from your checking account into the appropriate savings or investment account. This ensures your goals are funded before lifestyle spending creeps in.

When the “big rocks” are handled automatically, you can spend the rest with confidence, knowing your plan is on track.

As You Set Your 2026 Savings Goals, Review:

• Cash reserves for upcoming lifestyle needs such as vacations, home improvements, or kids’ activities.
• Debt service (your mortgage payments may change after annual escrow reviews)
• Roth IRA / Backdoor Roth contributions (if applicable)
• Taxable brokerage investments
• Education funding / 529 plans

If you received a year-end bonus or have vested RSUs, this can be a powerful way to top off accounts and get a head start on the year.

Need Help Balancing Today and Tomorrow?

If you’re wrestling with how to enjoy life today while still making meaningful progress toward long-term goals, you’re not alone, and I’m happy to help you put a framework around it.