Feel Like You're Not Measuring Up Financially in 2026? You Might Be Using the Wrong Ruler

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Many Americans say they aren't feeling optimistic about their financial progress this year. According to a recent report from Omnicalculator, eight in 10 adults say they have at least one financial regret from 2025.

Missteps are tied to spending, debt or a lack of long-term planning, with almost three in 10 Americans reporting their biggest mistake was making decisions too quickly.

But feeling financially behind can be misleading. In many cases, the issue isn't a lack of progress — it's how that progress is being measured.

Higher cost of living

Much of this sentiment is being driven by dramatic shifts in our financial environment following the pandemic. During COVID, reduced spending and temporary government support left many households with more cash on hand than usual. The extra cash provided a cushion, but only temporarily. As daily life began to normalize, so did spending, but at a much higher cost.

Now, just a few years later, many household budgets are struggling to keep up. In this kind of environment, it's natural to feel behind. But the reality is, the cost of everyday life has increased.

No financial plan or budget

In addition to the changing environment, not knowing how to measure progress can also contribute to the feeling of falling behind. Without a clear plan or defined goals, it becomes difficult to track progress, forcing many people to rely on how they feel rather than what the numbers show.

In my experience as an adviser, many households do not have or keep a working budget, which is key to controlling cash flow as well as measuring financial progress.

Inaccurate benchmarks

Even with a plan in place, it can be hard to focus on the right indicators. For example, only paying attention to investment returns can be misleading. This can lead to emotional decision-making, especially when the market is volatile.

Others may measure progress based on their day-to-day finances or how they feel compared to their peers. While these benchmarks may feel significant at the time, they're hardly an accurate representation of real progress.

For many households, the issue isn't falling behind, but misunderstanding progress. Having a clear financial plan makes it easier to evaluate where you stand. With that clarity, financial progress becomes much easier to recognize.

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.