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Q: I am 35 years old and I have nothing saved for retirement. Every time I plan to start, an unexpected expense occurs or I need to pay down debts. Last month it was a car repair. The month before it was my credit card bill from attending a friend’s destination wedding. I have a decent job but no real plan, other than that I should save. Hopefully it’s not too late to catch up. Where do I start? —Ryan

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FP Answers: Starting from zero at 35 is more common than you might think, and it does not mean you have missed your chance. Rather than viewing this as an age problem, it may help to see it as a budgeting problem. That is good news because budgeting problems have practical solutions. With about 30 years until a typical retirement age, you still have time for regular contributions and compound growth to build.

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Recognizing the problem is a helpful first step but figuring out what is getting in the way can take a little more work. It may feel as though willpower is the issue, but debt payments and everyday spending are often using up a paycheque before you get the chance to set savings aside.

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In addition, interest on a credit card balance, car loan or overdraft protection works against you each month, while savings is left with whatever remains, which is often very little. The goal is to reduce those costly outflows so you can redirect more of your money toward your future.

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Start with an honest household budget. Track every dollar for one full pay cycle, paying particular attention to variable expenses. As you review the numbers, consider what is truly essential and what could be adjusted. This exercise often reveals money that could be redirected from interest charges or lifestyle spending toward your future.

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If you are carrying high interest debt, such as a credit card balance, make paying it down a priority because the interest rate is likely higher than the return you would earn on savings. A non-profit credit counsellor can help you identify the best strategy so that you can start saving before you are completely debt free, especially if your employer matches retirement plan contributions.

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An employer matching program is free money, and passing it up while you repay a loan can cost more than it saves. A modest automatic contribution alongside steady debt payments is often more sustainable than an all-or-nothing plan that never gets started.

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Once you have a debt repayment plan in place, a financial adviser at your bank or credit union can help you decide how to divide contributions between a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA), based on your income and goals. In the meantime, use reputable Canadian resources to build your knowledge so you can approach that conversation with informed questions and greater confidence.

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Keep your first step small and automatic. Consistency matters more than starting with a large amount. Set up a fixed transfer of $50 or $100 each payday, treat it like a bill you have committed to paying and increase the amount whenever you receive a raise instead of letting the extra income flow into spending.