With the hardships of the pandemic and the difficult times in returning to normalcy many of us have made difficult decisions that oftentimes led to financial losses. But how do we climb out of the economic hole we may be in?

It’s possible to recover from financial mistakes if you follow the right steps, according to Michael J. Garry, CFP, JD/MBA, a Certified Financial Planner practitioner and a member of the National Association of Personal Financial Advisors with over twenty years of experience.

He shares his insight in his new book, The Smart Person’s Guide to Financial Planning & Investments: A Simple and Straightforward Approach to Understanding Your Personal Finances. In it he covers everything you need to know to finally achieve financial security and peace of mind.

1. The first think to do is take stock of your current financial position. Get all of your financial information together, maybe with the help of a Certified Financial Planner. You need to gather everything related to your finances: bank statements, investments, retirement, and all of your bills and debts.

2. Figure out your net worth and compare your income to your expenses. Are you in a good spot with both, or with one or the other? Is your mistake something easy to overcome or will it be a journey?

3. Depending on the answer to those questions, you will need to come up with a plan to get you into better shape with the ultimate goal of being able to comfortably retire at some point.

4. If your income is not enough to pay your bills and save what you need to, you either need to increase your income or cut some discretionary spending. Most financial planners are all about cutting spending. Personally, I think it depends on the situation and what would work best for you. I worked a second job for years to help pay down my student loans. Yes, it wasn’t fun, but it worked.

5. Once your plan is in place, you need to check on it periodically to make sure it’s still the right plan and make adjustments as needed. It’s common to make adjustments along the way because your situation and goals are likely to change throughout your life.