12 Personal Finance Tips for 2025
As we wrap up 2024, it’s time to focus on personal finance tips for 2025.
Make getting your financial house in order your main 2025 resolution.
Not only is it possible, but it is also something many of us need to do.
A 2024 Bankrate study found, “Whereas 72% of Americans indicated they were not completely financially secure in 2023, that number has now risen to 75% in 2024. Three in 10 (30%) Americans say they are not completely financially secure and likely never will be, up from 26% in 2023.”¹
Financial security is important – but it is up to you to get there.
Here are 12 personal finance tips for 2025 to help you take actionable steps toward improving your financial situation.
#1 Get Engaged with Your Finances
Mark Hamrick, a Senior Economic Analyst at Bankrate, explains, “Many Americans are stuck somewhere between continued sticker shock from elevated prices, a lack of income gains and a feeling that their hopes and dreams are out of touch with their financial capabilities.”²
If you feel this way, it can be tempting to bury your head in the sand and give up.
That’s not the answer.
If you want to improve your financial situation, get engaged with your finances.
Take a good, hard look at where you stand financially.
Review your debts. Review your savings accounts.
You need to be honest about where you are currently so you can get yourself to a more financially secure future.
#2 Set Achievable Goals
We love to set New Year’s resolutions, but we often fail to keep them.
Instead of setting an unattainable resolution, set achievable goals for yourself.
Ask yourself the following questions:
- How much debt do you have? How much time will it take you to pay it off realistically?
- How much more do you need to contribute to your 401(k) each paycheck to put yourself in a better position come retirement?
- Do you have any money saved for emergencies?
Consider your answers.
You may not be able to pay off all your debt and save more for retirement in 2025.
But could you set a more realistic goal, such as paying off 80% of your debt by the end of 2025, boosting contributions by 1%, or building an emergency fund of $5,000?
Setting smaller, more achievable goals may motivate you better than setting big dream goals.
#3 Get a Plan for Retirement
How can you save for a goal of retiring and traveling the world, if you don’t have a plan to get there?
It’s pretty difficult.
If you don’t have a retirement plan, create one based on your individual needs and wants.
Ask yourself the following questions:
- At what age do you want to retire?
- What do you want your retirement to be like? Where do you want to live?
- How much money will you need to have a financially secure retirement?
Answering these questions helps get a plan in place.
Use our 401(k) Calculator to see how much you may have at retirement with professional account management.
#4 Create a Budget
Once you know where you stand currently and have set financial goals, it’s time to create a budget.
Creating a budget is one of the best personal finance tips for 2025.
Keeping your current financial situation and goals in mind, draw up a budget that covers every budget item – including paying down debt, building up savings, and discretionary spending.
If you need help, there are numerous apps to help you budget and prevent you from overspending.
#5 Pay Yourself First
One effective way to stay on track with your budget is to prioritize saving for your future by paying yourself first.
Consider setting up automatic contributions to your 401(k) or IRA, if eligible, to have a portion of your paycheck deposited directly into these accounts.
Additionally, transferring money to your savings account before paying other expenses can help you build financial security over time.
#6 Build an Emergency Fund
Life happens, which is why you need an emergency fund.
If you don’t have an emergency fund, chances are you may have to put charges on your credit card.
Consider setting up a dedicated savings account just for emergencies.
Get a quick start on your emergency fund by depositing your tax refund into your emergency savings account.
#7 Boost 401(k) Contributions
How much are you currently contributing to your 401(k)?
Will 2025 be the year when you contribute more?
Try to do whatever is possible to increase contributions – especially contribute enough to make the company match.
Note – Individuals aged 60 to 63 may contribute an additional $11,250 in 2025 instead of the $7,500 catch-up contribution those 50 to 59 and 64 and older may contribute. This means those in this group can potentially contribute up to $34,750 in total to their 401(k) plan.
[Related Read: 2025’s Super Catch-Up 401(k) Contribution]
#8 Regularly Rebalance Your 401(k)
We recommend rebalancing 401(k) account allocations throughout the year.
Unmanaged allocations may experience larger losses because of down markets. In contrast, they may miss growth opportunities during good markets.
Instead of allowing these things to happen, rebalance regularly to earn more and retain more of your savings.
You can rebalance yourself or work with 401(k) Maneuver.
We offer professional quarterly 401(k) account rebalancing that is personalized to your tolerance to risk and based on current economic and market conditions.
Our goal is to increase your account performance over time, manage downside risk to minimize losses, and reduce fees that are hurting your retirement account performance.
See how it works.
#9 Improve Your Credit
Whether you are worried about your credit score or the increase in identity theft issues, you should get a copy of your credit report.
Ensure all the information is correct and report potential identity theft issues.
Call 1.877.322.8228 or visit www.annualcreditreport.com to obtain a free credit report from the three major credit reporting agencies.
Look over your credit report and see if you notice anything suspicious.
For those with a lower credit score, use 2025 to pay bills on time and boost your credit score.
#10 Review Insurance Policies
Take a few minutes of time in 2025 to review your insurance policies.
Don’t simply renew your insurance year after year.
You could potentially be missing out on savings based on changes you’ve made or changes with the insurance company.
Plus, you may be able to find better rates through a different company.
#11 Commit to Knowledge
One of the most effective personal finance tips for 2025 is committing to knowledge.
Knowledge is power.
Learn all that you can about finances and retirement savings.
As you grow knowledgeable, you will grow more secure and confident about making financial decisions for your future.
Check out our complimentary 401(k) investing guide. Read blogs like this one. Watch videos. Listen to podcasts.
#12 Work with a Financial Advisor
A financial advisor may help you get on track to meet your goals and help you feel more financially secure.
401(k) Maneuver provides professional account management with the goal of helping you grow and protect your 401(k).
Our goal is to increase your account performance over time, manage downside risk to minimize losses, and reduce fees that harm your account performance.
Have questions about how 401(k) Maneuver works? Book a complimentary 15-minute 401(k) Strategy Session with one of our advisors.
Sources
- https://www.bankrate.com/banking/financial-freedom-survey/
- https://www.bankrate.com/banking/financial-freedom-survey/
