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As we rapidly approach the end of the year, it can be tempting to take your focus off your finances and bask in the comfort of the holidays instead. But there are steps you can, and should, take before the year is out if you want to start off strong in the new year.

The key is knowing where to put your focus to get the best results. Here are five important money moves to make before 2025.

1. Review your budget

Understanding how you’re actually spending and saving is vital if you want to reach your various money goals. So taking a look at your money habits is a good first step to finding a budget that actually works for you.

Interested in using a budgeting app to quickly assess your finances? Check out our list of the best budgeting apps.

It can be easy to slip into a self-critical mindset here. But remember: Your habits and goals don’t have moral weight, and your budget can be whatever you want it to be. The key is treating it as a living document that can change over time.

2. Change your 401(k) contribution amount

If you have a 401(k) and your employer offers a contribution match, now is the time to contact your 401(k) provider to make sure you’re contributing enough to reach that match. That’s especially true if you received a pay bump at any time during 2024 or if you haven’t adjusted your contribution in more than a year.

For example, an extra $500 contributed (about $42 per month) at age 35 can grow to more than $10,000 in your retirement accounts by the time you’re ready to retire.

3. Bulk up your emergency fund

Savings rates for high-yield savings accounts (HYSAs) are still high, despite the Fed’s recent benchmark rate drops. And if you have money that you don’t need right now, adding that to your emergency fund is a solid way to grow, or at the very least prevent loss of value due to inflation.

Ready to take the plunge and get an HYSA? Check out our picks for the top HYSAs available right now.

4. Cancel unwanted subscriptions

New years represent a fresh start, but if you’re still paying for subscriptions that you no longer want or use, that can put a damper on things. And unfortunately, as more and more companies jump on the subscription bandwagon, that can mean more of your money going toward these services.

The Federal Trade Commission’s click-to-cancel rule isn’t yet in effect, so you may have to make a few phone calls or jump through hoops to cancel certain subscriptions. But if you’re spending hundreds of extra dollars per year on these services (for example, via a $15 and $35 subscription), it’s time that will be well spent.

5. Use up any remaining FSA funds

Flexible spending accounts (FSAs) can be useful tools to reduce your taxable income and pay for medical expenses. But the major caveat there is that those contributions generally don’t roll over from year to year (with a couple of exceptions, such as a 2.5-month grace period if your employer offers one). So using up that cash is vital to make sure it isn’t going to waste.

That money can be used on expenses like deductibles, copayments, prescriptions, crutches, and blood sugar kits.

Waiting until the new year to tackle your finances can prove to be a misstep. But if you take the time to address these five areas beforehand, you’ll be set up to have an even better 2025. That way, you can focus on accomplishing your goals in 2025 — rather than playing catch-up.

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