Financial Success in 2025: Money Moves to Make Before Year-End

It seems like only yesterday we were ringing in 2024 and now 2025 is almost upon us. That means now is the time to start making those end-of-year money moves to set yourself up for financial success in 2025.

But what does that mean? Evaluating your finances top to bottom. Looking at accounts that may not be working well enough for you and where money could be put to better use. Eliminating unnecessary expenses.

By putting these tips into action, you’re giving yourself a head start before the new year even begins. Here’s what we recommend.

1. Evaluate Your Current Budget

You should evaluate your budget every time you reach a new milestone or ring in a new year. Over the course of time, circumstances change. Perhaps you got a raise or switched jobs, or maybe paid off a significant credit card or loan.

Knowing your financial standing is so important to achieving success. Updating your budget at least once a year will also give you an opportunity to see where you can make changes where maybe you once couldn’t.

2. Pay Down Debts

Specifically, pay down your high-interest debt—credit cards, we’re looking at you. Carrying over debt into the new year may not seem like a big deal, because, hey, it’s just another day.

Ditch that mindset immediately. Instead, think of goals you want to achieve in the coming year and then imagine how much quicker you could achieve them if you weren’t saddled down with your high-interest debts. See where we’re going with this?

3. Refinance Large Monthly Payments

If you have a large car payment or mortgage and the rates are favorable, refinancing could be a good idea. If you’re successful, you can cut down the amount of money going out the door each month.

Then, take that money and put it to better use. Either use it to pay down high-interest debt or put it in savings or your retirement accounts. Make it work for you rather than against you.

4. Spend Your FSA Money

If you have a Flexible Spending Account (FSA), chances are that money does not roll over into the following year, so you have to use it up. Now is the time to do so.

The good news with FSA is the funds within can be used for multiple things, such as co-pays, some prescriptions, deductibles, and even special medical equipment. If you need clarity on what’s covered, you can speak to your employer.

5. Cancel Subscriptions You Don’t Use

It happens to all of us. We sign up for subscription services and then promptly forget about them. Or, perhaps we sign up to watch one show and then continue paying for the service all year even though it’s sitting idle.

There’s one solution: get rid of them. They are the very definition of wasted money. If you have two subscriptions, that could equal $20 or more per month, or $240 or more per year.

6. Review Your Investment Accounts

If you have investment accounts, other than your retirement accounts, it’s worth taking a deeper look at them. Are you getting the most out of them, or could your money better be served elsewhere?

The rule of thumb is investing is a marathon, not a sprint. But… if your money is sitting stagnant, and it’s in a taxable brokerage account, for example, you could pull it out without any penalties and move it to where it will do better. Additionally, you could move the money not serving you well in a particular investment allocation.

7. Build Up Your Emergency Fund

We never know when an emergency is going to strike. We can only be prepared for that eventuality. This means building up an emergency fund with at least three to six months’ worth of expenses in it.

There are situations where you’ll need more, such as if you’re self-employed, but three to six months is a good start. If you’re not anywhere near that, consider some of the other money moves on this list to help you along.

8. Make Charitable Contributions

Charitable contributions are (mostly) tax deductible. Donating to your charity of choice is a great way to reduce your tax liability.

Make sure you get a receipt for your donation and that your money is going to an approved foundation to get the credit. Also make sure you don’t claim more than the allowable amount, which is 00% of your adjusted gross income (AGI) for cash and 30% of your AGI for long-term assets held more than a year.

9. Make Your Doctor Appointments

Every year, most insurance plans have a deductible amount you must meet before you stop paying out of pocket. If you’ve hit your deductible, now is the time to set up your appointments for the remainder of the year at a reduced cost.

If you have money left in your FSA, you can use it to pay for these appointments, a double win.

10. Max Out Retirement Accounts

Every year, when possible, you should be maxing out your retirement accounts by hitting the contribution limits. If you can’t pay that much into them, then at the very least contribute the max your employer will match.

That’s free money going toward your future and the more you contribute, the better off you’ll be when retirement rolls around.

11. Check Your Credit Report

Have you checked your credit report this year? If not, get to it! Keeping an eye on your report and checking it once a year at the very minimum is essential to your credit health.

It also helps ensure you’re starting the next year off on your best foot. If you notice any errors or questionable accounts, dispute them immediately and if necessary, freeze your credit until those issues are resolved.

12. Take Advantage of High-Yield Savings Accounts

Now that you’ve (hopefully) found some extra money, it’s time to take advantage of high-yield savings accounts. These are accounts that pay significantly more than the national average.

Instead of making pennies, you’ll make much more in interest, which you can then compound and build up even more savings.