As we move into a new year, it’s the perfect time to take a look at your financial goals and set yourself up for success. You can start building healthy financial habits right away that will lay the groundwork for a prosperous financial future. Here are five 5 financial decisions you can make in 2025 to improve your money management.

1. Maximize retirement contributions

If you’re not already doing this, be sure to prioritize contributions to your retirement accounts, like your 401(k) or IRA. If it’s available to you, take advantage of employer matching and aim to increase your contributions by at least 1% annually. Starting early and staying consistent can lead to significant long-term growth.

2. Build an emergency fund

Make sure you have at least 3-6 months’ worth of living expenses saved in an emergency fund. Put it in an account where you can get to it quickly if you need it. It’s a safety net that can protect you if you run into unexpected situations like medical bills or unemployment, so you’ll be less dependent on credit cards or loans.

3. Invest in education or other skills development

Think about investing in courses, certifications, or training that can help you earn more. Upskilling in growing industries or fields can open up new opportunities to you, improve job security, and lead to higher long-term earning potential.

4. Refinance or pay down high-interest debt

High-interest debt can drain your finances fast. Look into refinancing options for loans or consolidating credit card debt to get lower interest rates. If these aren’t an option, focus on aggressively paying off your debt on your own.

5. Diversify your investments

If you’ve already started investing, go through your portfolio to make sure it’s well-diversified to balance your risk. Include a mix of stocks, bonds, and other assets. Consider consulting with a financial advisor to align your investments with your goals and risk tolerance.

Making thoughtful financial decisions in 2025 can set the stage for long-term stability and success. By focusing on savings, investments, and skill-building, you’ll position yourself to achieve your financial goals and navigate the year ahead with confidence.