Saving money isn't rocket science, but it isn't always as easy as stashing some cash in a jar each month. Learning how and when to save is essential to navigating a successful savings strategy in the upcoming year. 

Saving money also doesn't come naturally to a lot of folks. It takes work to know which steps to implement and when to start. For lots of people, the thought of failing is enough to keep them from even getting started. 

If you're looking to start 2025 off on the right foot with a clear set of savings goals in mind, we can help. Check out some of our best tips for getting a jump on making 2025 your best year for saving yet. 

1. Date Your Finances

If you never look at your financial documents, how will you ever know where you stand? While you don't really have to go all out on a date with your money matters, you should schedule a time (in the first week of January) to take a long, hard look at where your money is, where you want it to go, and how you're going to get there. 

Take a moment to take stock of how 2024 went. Did you reach the goals you wanted to for the year? Did your savings grow or shrink? How's your emergency fund holding up? Are you carrying more or less debt than when 2024 started? These questions will give you a clearer view of how the past year went and what you might want to change going into 2025. 

2. Beef Up Your E-Fund

The first time I ever heard about an emergency fund was when I was 40 years old. I come from a low-end, middle-class family, and money wasn't always a sure thing. My parents weren't exceptionally great at handling their own finances, and the public school system is sorely lacking in this area. 

Financial literacy wasn't something most people talked about in the '80s and '90s, and generations of children grew up with little to no compass on how to handle money effectively. If your emergency fund is low or you don't have one, start here. Shoot for a cushion of three to six months' worth of your regular bills. Once you have that in place, you can move on to paying down debt and adding to your current savings and investment accounts. 

3. Money Management

Evaluating your finances also means looking over your money management tools. Did your budget help you stay within your means? Did you earn interest on your savings accounts, and did that help you get closer to your financial goals? Did you have any investments that did particularly well or didn't perform well?

Overhauling your money management can have a very positive effect on your savings goals and ability to keep those goals moving ahead. Stay the course, use what works, and take one step at a time. 

4. First Steps First

When we're trying to get our finances in order, it's so easy to prioritize debt because carrying a lot of debt is bad, right? However, it's not actually the first thing you should worry about. Instead, put that emergency fund at the top of your priority list. 

Once that's in order and secured, you can chip away at your debt and save a little. After you clear your debt, you can allocate what you were paying to your savings accounts and watch them flourish, all without sacrificing your progress. By keeping that emergency fund flush, you won't have to worry should you lose your job or have another unexpected financial issue. 

5. Begin at The End

It might seem counterintuitive to think about the end of 2025 when the year is just beginning. However, by doing so, you can better grasp what you'll have to set aside in order to accomplish where you hope to be a year from now. 

While you won't want to focus on the end of 2025 the whole year, spending a few moments at the start to consider your end-of-year goals could be a great way to gauge what you want to accomplish and see how you're doing as the year progresses. 

6. Defined Pension Plans

If you have a recurring business income of $400,000 or more, a defined benefit pension plan can work in your favor. You'll need to set up your account by December 2025 and can add contributions before September 15, 2026. 

If you have a high number of employees, John Garalka of The Garalka Law Firm recommends checking on special planning to ensure a smooth setup and contribution rate. By funneling funds into this fund, you can avoid taxation and build a pension fund your employees will appreciate when they retire. 

7. Family Budget Night

Budgets only work if everyone's doing their part. One of the most contentious areas where couples run into problems is with money. It's one of the top three reasons couples end up in divorce court, and I've seen it happen more than once. 

The most crucial step you can take to set yourself up for success in 2025 is to sit down with your spouse and children and explain your goals, what they mean, and why they're important. Get your family on the same page as you and work out a budget for everyone to live in the long term. 

8. Automation is Life

Once your budget is in place, start automating as much of your finances as possible. Sign up for direct deposit if your employer offers it. Then, work with a money management system that helps you set aside funds for your emergency stash, investments, and other savings accounts and see how your budget holds up after you pay everything, and your fun money is all that's left. 

If your budget falls short, adjust your automation process accordingly. If you end up with more fun money than you thought, and everything else is kosher, enjoy the extra cash on hand. 

9. Cash Flow

No one likes living paycheck to paycheck. It's not fun wondering if you'll have enough cash to make it until you get paid again. If you're hoping to make 2025 a financially successful year, understanding your cash flow is the first step in getting everything where you want it. 

Knowing how much money you have to work with and how fast you're going through it is essential to a solid financial strategy. By understanding these two metrics, you can adjust your spending to ensure you're all good before more cash comes to hand. 

10. Debt Be Gone

In the USA, the average household debt is currently $104,215 per household. Credit card debt alone has reached $1.14 trillion. Debt isn't something that gets tackled all at once. It's like the adage about eating an elephant. You cut down on big problems one small step at a time. 

That's not to say you can't cut up bigger chunks if you have the funds available. However, getting your debt under control is essential to financial success. You can't be financially solid and carry enormous debt at the same time because that debt is accruing interest and stealing more and more of your wealth the longer you hold it. 

11. Regular Reviews

While automation and money management can have a set-it-and-forget-it element to them, you can't set them up in January and never think about them again until December. You have to schedule regular financial reviews to make sure your goals are still on track and that your automation is working the way you want. 

By making time to revisit your money processes and budget, you'll keep your money goals on point. This will, in turn, help you better manage your goals as the year moves on. 

12. 401(k) Bump

If you're expecting a pay raise in 2025, now is a great time to increase your 401(k) contribution. By making just a 1% increase to your payout here, you can continue to stash away more for retirement without greatly impacting your overall spending. 

Always adjust your budget accordingly, as your fun money section will see a bit of a dip, but nothing so huge that you're going to end up broke before your next paycheck comes along. 

13. Cut Your Monthly Bills

When you sit down to work on your budget, you may be surprised by just how much you pay out every month for items like subscriptions and memberships that sit by the wayside, not even utilized in 30 days. 

When you take stock of all your bills and know exactly where your money is going every month, you can start to cut out unnecessary and unused subscriptions. You can also cut back by bundling services together, lowering your data plan, or using a company like Mint Mobile to reduce your costs greatly. 

14. What you Really Want

Most people aren't yet where they'd really love to be. We want a different job or at least more time with our loved ones. We desire more pay for less work. However, how do we get there?

As we ring in 2025, take a moment to evaluate where you really want to be. What sort of life do you really, really want? Aligning your goals with where you want your life to be in a year will help you ensure you meet those goals month in and month out. By December 2025, you'll have a good handle on whether or not you're closer to that life.