5 money moves you need to make before the end of 2024

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As we quickly approach the end of the year, it can be tempting to stop focusing on finances and instead enjoy the comfort of the holidays. But there are some steps you can and should take before the end of the year if you want to start the new year stronger.

The key is knowing what to focus on to get the best results. Here are five key money actions you should take by 2025.

1. Check your budget

If you want to achieve your various money goals, it’s important to understand how you actually spend and save money. So looking at your money habits is a good first step to finding a budget that actually works for you.

Want to use a budgeting app to quickly assess your finances? Check out our list of the best budgeting apps.

It can easily happen here that you fall into a self-critical way of thinking. But remember: your habits and goals have no moral meaning and your budget can be arbitrary. The key is to treat it as a living document that can change over time.

2. Change your 401(k) contribution amount

If you have a 401(k) contribution and your employer is offering a contribution increase, now is the time to contact your 401(k) provider to make sure you are contributing enough to meet that contribution . This is especially true if you received a raise at any time in 2024 or if you haven’t adjusted your contribution in more than a year.

For example, if you contributed an additional $500 at age 35 (about $42 per month), your retirement accounts could total over $10,000 by the time you’re ready to retire.

3. Replenish your emergency fund

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

Are you ready to take the plunge and purchase a HYSA? Check out our selection of the best HYSAs right now.

4. Cancel unwanted subscriptions

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

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

5. Use up any remaining FSA funds

Flexible spending accounts (FSAs) can be useful tools for reducing your taxable income and paying for medical expenses. The biggest caveat, however, is that these contributions generally do not roll over from year to year (with some exceptions, such as a 2.5-month grace period if your employer offers one). Therefore, it is important to use up this money to ensure that it does not go to waste.

This money can be used for expenses such as deductibles, copays, prescriptions, crutches and blood sugar kits.

Waiting until the new year to take care of your finances may prove to be a misstep. But taking the time to address these five areas beforehand will set you up for an even better 2025. This way, you can focus on achieving your goals in 2025 – rather than playing catch-up.

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