In 2025, financial wellness is more important than ever. With global economies evolving, new tech tools changing how we manage money, and lingering inflation, it’s important to start thinking about ways to do things that ensure financial stability and growth. Here’s how to reach financial wellness this year and beyond.

What is financial wellness?

Financial wellness is being in control of your finances, having the capacity to absorb unexpected financial situations, and being on track to meet your short and long-term goals. It’s more than just savings—it’s about making informed decisions, reducing financial stress, and creating a sustainable lifestyle.

Key pillars of financial wellness in 2025

  1. Budgeting and expense tracking
    • Use financial apps: Leverage advanced budgeting apps like Brigit, YNAB (You Need a Budget), or PocketGuard. These tools offer personalized insights and tracking of your expenses.
    • Digital payment awareness: With the rise of contactless payments and digital wallets, track those small transactions because they can add up fast!
  2. Emergency fund
    • 3-6 months of expenses: Aim to have at least three to six months’ worth of living expenses in an easily accessible savings account.
    • High-yield savings accounts: Take advantage of higher interest rates in 2025 by placing your emergency fund in a high-yield savings account or money market account.
  3. Debt management
    • Prioritize high-interest debt: Focus on paying off high-interest debts, like credit cards, first to save on interest costs.
    • Consolidation: Consider debt consolidation loans or balance transfer credit cards to simplify payments and reduce interest rates.
  4. Retirement planning
    • Max out contributions: Be sure to take full advantage of employer-sponsored retirement plans like 401(k)s, especially if your company matches your contributions.
    • Diversify investments: Use tools like robo-advisors to create a diversified retirement portfolio tailored to your risk tolerance and goals. Robo-advisors are automated investment investing services that use computers to build and manage your portfolio—like Wealthfront and Vanguard.
    • Catch-up contributions: If you’re over 50, you can (and should) use catch-up contribution options to boost retirement savings.
  5. Investing for growth
    • Sustainable investing: ESG (Environmental, Social, and Governance) investments are increasingly popular. Research funds that match your values and can offer solid returns.
    • Fractional shares: Platforms like Robinhood and E*TRADE let you invest in expensive stocks through fractional shares.
    • Cryptocurrency caution: While digital currencies are a part of the financial landscape, they’re very high risk; be careful..
  6. Financial education
    • Stay updated: Attend webinars, read books, and follow financial blogs to keep up with trends and strategies.
    • AI financial advisors: Use AI-driven tools (but double-check their recommendations because AI does tend to make things up!) for personalized advice tailored to your financial situation.
  7. Health and insurance planning
    • Comprehensive coverage: Make sure you have enough health, life, and disability insurance to protect you against unplanned expenses.
    • Health savings accounts (HSAs): If you’re eligible, contribute to an HSA to save for medical expenses and benefit tax advantages.

Leveraging technology for financial wellness

  1. Artificial Intelligence: AI-driven tools can analyze spending patterns, recommend saving strategies, and even help you negotiate bills.
  2. Blockchain and security: As payments and banking go more and more digital, blockchain technology helps keep your transactions secure. Look for platforms that prioritize user security.
  3. Subscription management: Apps like Rocket Money can identify and cancel your unused subscriptions, saving you a lot (often hundreds of dollars) annually.

Build your financial resilience

  1. Diversify your income
    • Explore side hustles, freelance opportunities or dividend-paying stocks.
  2. Prepare for economic uncertainty
    • Keep an eye on economic trends and be ready to adjust your financial strategy to adapt to market changes.
  3. Maintain a growth mindset
    • Treat financial setbacks as learning opportunities and stay committed to your goals.

The importance of mental wellness in financial planning

Financial stress can take a toll on your mental health. Address this by:

  • Practicing mindfulness to manage stress.
  • Breaking large financial goals into smaller, manageable steps.
  • Seeking professional help from financial advisors or therapists if you need it.