When it comes to money goals for 2025, chances are good you’re hoping to save more. After all, almost everyone is eager to step up their retirement savings or add to their emergency fund so they can make their financial position more secure.

Simply upping your savings account balance may not be enough to set you up for true financial success though. There are a few more money moves you should make this year if you want to end 2025 richer than when you started. 

1. Set specific long-term, mid-range and short-term goals

The first thing you should do if you want to improve your finances this year is to set very specific goals. You should have one or two short-term goals to accomplish within the next few years; a few medium-term goals to accomplish within the decade; and some long-term goals like retirement savings.

Each goal you set should be specific, actionable, measurable, time-bound and something you are excited about.

For example, don’t just specify you want to save for retirement. Figure out how much you need to invest each month to be on target, either doing the calculations yourself with online calculators or by getting help from a financial planner. Then, automate the process of investing for your goal, transferring money on payday so you never miss a contribution. 

2. Use the right tax-advantaged accounts to invest

When you invest for retirement, you need to make sure you’re taking advantage of the tax breaks available to you. There are a variety of different tax-advantaged accounts to choose from including:

• A traditional 401(k)
• A traditional IRA
• A Roth 401(k)
• A Roth IRA
• A health savings account

You’ll have access to a 401(k) only if your employer offers one, and your employer may provide access to a traditional 401(k), a Roth, or both. Your employer may also offer matching contributions when you invest in your account.  IRAs, on the other hand, can be opened with any brokerage firm so almost anyone can contribute as long as your income isn’t too high. 

Roth and traditional accounts come with different tax breaks, with Roth accounts deferring your tax savings until you are a senior as you can take tax-free withdrawals but not make tax-deductible contributions. Traditional accounts do the reverse, offering tax savings when you contribute, but not when you make withdrawals. And HSAs offer tax breaks both when you invest and if you withdraw money for qualifying medical expenses. 

You should think carefully about which of these accounts to put your hard-earned money into. For most people, it makes sense to:

• Max out their 401(k) first to earn the full match. If your company offers both a traditional and Roth 401(k), you’ll need to decide which makes sense. A Roth is usually the right option if you think you’ll be in a higher tax bracket as a retiree while those who think they’re paying a higher rate now should consider a traditional 401(k). 
• Max out an HSA: You get tax-free investing and tax-free withdrawals from these accounts if you’re eligible to contribute (you must have a qualifying high-deductible health plan to do so). If you don’t use withdrawals for medical expenses, you can still take money out penalty-free after 65 but will be taxed at your ordinary income tax rate. Since many seniors have high healthcare costs, it’s worth investing in an HSA to get the added tax breaks if you can. 
• Maxing out a traditional or Roth IRA: Putting some money into one of these accounts can make good sense after getting your full 401(k) match, because you get more flexibility with regards to your investment choices. Just be sure you’re eligible for tax-advantaged contributions based on income. 
• Contributing more to a 401(k) with anything left over: If you still have money to invest, then you’ll likely want to put it into a 401(k) until you reach your max contribution limit. 

By making the most of these tax-advantaged accounts in 2025, you can claim all the government help available to set yourself up for a secure future.

3. Make sure you have a diverse mix of investments

You’ll need to select the right investments in all of your different retirement plans so your money can grow as much as possible. For many people, using exchange-traded funds (ETFs) is the best course of action because they have low fees and are simple to invest in. Famed investor Warren Buffett suggests most people put around 90% of their portfolio into an S&P 500 index fund, as the S&P tracks the performance of the market as a whole and provides exposure to around 500 large companies across the U.S. 

You also need to be sure you have the right exposure to equities for your age, as putting money in the market means you stand to lose it — especially if you have a short investing timeline and can’t wait out a downturn. A standard rule of thumb is to figure out the percentage of your portfolio to put in the market by subtracting your age from 110. A 40-year-old investor would have 70% of their portfolio in stocks based on his rule, and exposure to equities should be adjusted each year.

Check your portfolio as 2025 gets underway to make sure you have safe investments with low fees that you want to hold for the long-term — and that you aren’t being either too conservative or too aggressive with your asset mix. 

4. Take full advantage of employee benefits

If your employer offers workplace benefits, they’re built into your compensation package. Make sure you’re getting their full value. This means investing enough to earn your full employer match, but it could also mean making sure you’re investing in your FSA or HSA if you’re offered access to one, using workplace wellness benefits, or signing up for employer-provided life insurance coverage. 

If your company offers a choice of health plans, you’ll also want to take advantage of the opportunity during open enrollment to make sure your coverage is optimized.  If you don’t use many health services, for example, you may want to switch to a plan with lower premiums but higher deductibles. Put the amount you’re saving on premiums into a savings account so you can cover your deductible in case you need it. 

5. Improve your credit score

Finally, if your credit score is lower than you’d like it to be, aim to improve it in 2025. Improving your credit can pay off big time in the form of reduced borrowing costs, lower auto insurance rates, and lower deposits when you sign up for utilities.

You can improve your score by setting automatic payments to ensure all your bills are paid on time, keeping your credit utilization to 30% of the credit line available to you, having a good mix of different kinds of accounts, and keeping old accounts open to develop a longer average credit age. If you have a record of late payments or other issues but are now a good customer, it may also be worth asking your card issuer if they’d be willing to remove the old information from your record as a gesture of goodwill. 

Taking these five steps can make a huge difference in your finances in 2025, so start working on them now. You have plenty of time to improve your financial future if you commit to making these moves this upcoming year. 

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