3 ways to save money before the end of 2025
Although 2025 is quickly coming to a close, there are still money-saving moves you can make ahead of the new year.
Here are some tips from financial experts.
Use FSA funds
Dec. 31 is an important deadline if you have been contributing money from your paycheck to a flexible savings account, known as an FSA, for medical expenses.
For many FSA accounts, it’s a “use it or lose it” situation at the end of the year. Instead of letting that money go to waste, consider using it to stock up on medical essentials such as aspirin, hand sanitizer or contact lenses.
You can find a list of items and expenses that you can purchase with FSA funds at FSAfeds.gov.
Make charitable donations
Dec. 31 is also the deadline for charitable contributions. Donations you give to charities can be deducted from your taxes next year.
Consider deferring income
According to financial services company Fidelity, anyone who works on a freelance basis can consider deferring some income or waiting to bill any clients until next year. Doing so can lower your taxable income when filing taxes next year.
How to save money in the New Year
Once you lock in your 2025 money savings, it's time to get your finances in shape for 2026.
Consider the 60-30-10 budget model
The new year is a perfect time to make a budget and track how much money goes into your accounts versus how much is going out and getting spent every week or month.
There are different ways to save money but one method is the 60-30-10 model.
- 60% on needs
- 30% on wants
- 10% on savings and paying off debt
This means, you can allocate 60% of your weekly paycheck spending to “needs” like bills, child care, groceries, insurance and transportation.
After that, 30% of your weekly paycheck would go toward your wants, or leisure expenses such as restaurants, shopping and travel.
Finally, 10% of the paycheck then gets earmarked for savings and paying off any debts. This may mean paying down or paying off student loans, saving for retirement and putting money toward emergency savings.
Another way to keep track of your income and spending is to use budgeting apps that automatically sort expenses and make it easy to see different saving and spending categories.
Open and keep up with savings accounts
The start of a new year can be a good time to focus on investing and saving to various financial accounts, such as 401(k) and high-yield savings accounts.
If your company offers a 401(k) retirement account and contributions are matched, it’s worth trying to maximize that option. If you allocate $100 a month to your 401(k) for example, your company might match your $100 contribution per month. This means your money grows twice as fast.
Other ways you can grow your savings include opening and using high-yield savings accounts or a certificate of deposit, known as a CD. These are accounts where you earn more on your money that's already in the bank.
According to Bankrate, some banks are offering saving rates that are averaging close to 4%. After one year, $1,000 turns into $1,040 and so forth.
