Personal FinanceJNemchinova from Getty Images and rimmabondarenkoChristy Bieber
Setting the right money goals in 2025 can help put you on the path to financial success.
Make sure you’re investing in the right kinds of accounts in 2025.
Confirm your asset allocation is correct this year, so you can make the most of your invested funds.
Retiring early is possible, and may be easier than you think. Click here now to see if you’re ahead, or behind. (Sponsor)
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 goalsThe 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 investWhen 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. Traditi