2025’s Best Financial Improvements!
As we all know, the new year is by far one of the most popular times to start working on your finances. But as history shows, simply deciding to “save more” in the upcoming year isn’t somehow feasible. It is yet a mystery as to why that is.
Instead, what might work is to improve our habits which could lead to a bigger bank account. Here’s how to effectively think of yet another set of resolutions, hoping that this will be the year that finally brings what we wish for (at least financially wise). Also, remember that money isn’t everything, but it does help to have enough of it!
Set up automatic transfers
If you make this exercise of saving what’s left every single month after you pay your expenses, you are sacrificing your future for your current self. Instead, what you can do is pay yourself first. You can simply do that by coming up with automatic transfers to a separate savings account.
Moreover, if you get the sudden temptation to withdraw money from your savings, open a savings account with a different bank. This way, it will be much easier for you to forget about your savings and withdraw from your regular checking account.
Cancel recurring subscriptions
Research has proven that around 42% of consumers have a specific type of subscription service they have forgotten about. Even if you think you already know all your subscription services, you probably forget about one or two anyway.
Just go through your bank and credit card statements for the past year and mark down your recurring subscriptions. Why it’s best to do it for the past year? Well, some subscriptions only charge you on an annual basis. So if you want to retrace the past few months’ worth of statements, you might miss some pricey services.
Increase 401(k) contributions
If you want to save more money, there’s another, more classic way to go about it: increase your 401(k) contribution percentage. The minimum amount you should have in mind needs to be enough to earn the company match, only if your company offers one.
We advise you to have a discussion with your HR and kindly ask them how to increase those contributions. Of course, it can take a couple of pay periods to go through. Since 401(k) contributions come out of your paycheck right away, you won’t even have to focus that much on it once you have set it up.
Reinvest dividends
One of the most efficient ways to increase your retirement savings is to start reinvesting in your dividends. When you make room for that in your financial agenda and invest in the stock market, you have the option to choose between keeping your dividends or reinvesting them.
Just go through your retirement account and check what it says about your dividends. Whatever it says there, don’t panic: everything is an easy fix when it comes to investing.
Switch to a high-yield savings account
If your main goal is to save money, then you might as well consider switching to a high-yield savings account. That, in fact, might be the easiest way to save the amount you have in mind. A high-yield savings account is an account that offers you better interest rates than any other regular savings account.
High-yield savings accounts are far more common with online banks and credit unions than major national banks. And the best part is that they don’t have extra fees, so there’s really no downside to switching to a new one.
Change your bank
Even if it’s 2025, some people still believe that it’s normal to pay a monthly bank maintenance fee. These days, there are many banks and credit unions that don’t have maintenance fees. You can switch to a bank or a credit union with no monthly fees.
Refinance your loan
Well, paying less interest is definitely a facile way to save some cash and pay down your debt faster. In case your interest rates have shifted since you first took the loan, you can always consider refinancing with a new lender.
If the rates are similar, you could qualify for a lower rate if your credit score has drastically improved, especially since you took out the loan. If you can’t get a lower rate on your mortgage, you can also qualify to remove private mortgage insurance (PMI) from your monthly payment.
To do that, you need to have built up 20% equity in your property. You don’t even have to refinance to remove the PMI, but you will have to pay for an appraisal. This might save you hundreds every year, especially during the term of your mortgage.
Transfer your credit card balance to a 0% APR Card
If you pay down your debt, one of the most efficient ways to fast-track the process is to transfer your existing balance to a card that has no APR. There are plenty of special offers that last between six and 21 months, depending on your card. As soon as you have transferred the balance, you can pay down the amount by the time the offer expires. This way, you will be able to avoid paying excess interest.
Set a 24-hour rule for non-essential purchases
One of the most important reasons why people overspend is due to impulse. Instead of buying what you want when you want it, try this exercise: wait for 24 hours. It will give your brain enough time to calm down and decide if you truly want it or just need the item.
During this time, you might come to the realization that you already have something slightly similar, or that you can either find it at a cheaper price, or you don’t really want it that much. If you have this serious shopping urge, just extend it to a week-long break.
Negotiate a lower rate
Let’s be real: when was the last time you compared prices on your cell phone bill? What about that internet provider? If you simply can’t remember, now is the ideal time to start. First, get in contact with different competitors and check what their rates for new customers are.
Then, you can call your current provider and ask to speak to the retention department. You can tell them you want to cancel your account if you can’t get a lower rate. As soon as the rate decrease has gone through, just take the money that you get to save and automatically transfer it to your savings account.
Sign up for browser extensions
If you buy something online, you might be missing out if you don’t have installed a cash-back browser extension. There are plenty of extensions like Rakuten and Capital One Shopping that can offer you easy cash-back opportunities.
You can also redeem the cashback right away or save it for special occasions, such as Christmas. Moreover, such extensions often come with additional coupon codes you can use for free to save more money.
Look for coupons
Even if the days of extreme couponing seem to be behind us, coupons are still a wonderful way to save money. You can find online coupons through companies or simply via aggregate websites like Coupons.com.
We hope these tips help you along the way, and we can’t let you go without wishing you to have the year you wish for! Happy New Year!
If you found this article insightful, we also recommend checking: 12 Money-Saving Household Tips to Stay on Budget
