The end of the year is more than just holiday parties and last-minute shopping—it’s also your chance to give your finances a strong finish. Before the calendar flips, there are a few smart money moves that can help you lower your tax bill, boost your savings, and set yourself up for a more secure 2026.

Completing these banking tasks before year-end can help set you up for financial success in 2025.

Creating a budget is crucial, but it shouldn’t be set in stone. Your financial situation and priorities may have changed since the start of 2025.

Compare your monthly spending amounts with the amount you expected to spend. Did you spend more, less, or about the same?

If you spent more than you expected, you may need to come up with a plan to reduce your spending and/or increase your income in 2025. Alternatively, if you spent less than expected, it may be time to bump up your savings and investment contributions.

Read more: Your complete guide to budgeting

Maintaining an emergency fund is one of the most important steps you can take to protect the health of your finances.

Why? Without an adequate emergency fund, you might be forced to turn to credit cards or other forms of high-interest debt if you lose your job, experience a medical emergency, or are surprised with a major unplanned expense.

To prevent this from happening, experts typically recommend having enough liquid funds to cover at least 3 to 6 months’ worth of living expenses. But if you are self-employed or have an unpredictable income, you may need more.

So, take a look at your current savings and decide whether you need to work on building a bigger safety net. If so, determine how much you can afford to set aside each month and start contributing to a high-yield savings account that you can easily access when needed.

Read more: How much money should I have in an emergency savings account?

A flexible spending account (FSA) is an employee benefit that allows you to set aside money for healthcare expenses. The money in an FSA is contributed pre-tax, and you can use it to cover qualifying expenses such as deductibles, co-payments, coinsurance, and some drugs.

FSA contributions are limited to $3,300 per year. If you are married, your spouse can contribute the same amount through their employer’s plan.

While FSAs can provide tax savings for eligible healthcare expenses, you generally must use the money in the account within the plan year. If you don’t, you may lose the money in the plan (though some employers offer leeway in the form of grace periods or carry-overs).

If you currently have money sitting in your FSA, consider using the remaining funds before the end of the year. Contact your employer for details about which expenses are covered under your plan.

According to C&R Research, the average consumer spends about $219 per month on subscriptions. However, the same consumers estimated they only spent $86 per month. This subscription creep could be costing you over $2,500 per year without even realizing it.

Review your bank and credit card statements to spot subscriptions you rarely use (or even forgot you had) and cancel them. To simplify the process, consider using a service like Rocket Money to identify recurring subscription costs.

Read more: How do I stop automatic payments from my bank account​?

Your deductible on an insurance plan is the amount you must pay out of pocket before your insurance provider starts to pay. These deductibles generally reset on Jan. 1.

If you have already reached your deductible for the year, take advantage of reduced health costs and make any outstanding medical appointments by the end of the year. If you wait until next year, you’ll once again need to reach your deductible before insurance kicks in.

Read more: Is health insurance tax deductible? Here's what you can claim.

Accounts that offer tax advantages, such as 401(k)s, individual retirement accounts (IRAs), and health savings accounts (HSAs), are powerful ways to save and invest. Contributions to these accounts reduce your taxable income, helping you get a bigger refund — or at least, a lower tax bill — when you file taxes in April.

You have until April 15, 2026 to contribute the maximum allowable amount for tax year 2025. So, if possible, aim to max out your contributions by the deadline, if not sooner. If that’s not financially possible, but your employer offers matching contributions on your 401(k) or similar plan, make sure you are at least contributing enough to get the highest match available.

Read more: How much can you contribute to your 401(k) in 2025?

While often not as critical as tax-advantaged accounts, taxable brokerage accounts have benefits. One of the biggest is the ability to make penalty-free withdrawals at any time. Additionally, you often have more freedom in investment selection than you would with a 401(k).

If you invest using taxable accounts through an online brokerage or elsewhere, there are some basic tasks you should do at least once a year. Perhaps the most important is rebalancing, which involves selling investments above your target allocation and buying ones below your target allocation. You can also perform tax-loss harvesting, selling underperforming investments to offset capital gains.

High-interest debt can significantly strain your finances, so reducing or eliminating it can help you start off 2026 on better financial footing.

Fortunately, debt reduction doesn't have to be all or nothing. If you're currently making the minimum payment on your credit card bill, consider paying just an extra $50 monthly. This will help reduce your balance faster and significantly lower the amount of interest you pay in the long run.

Read more: What's more important: Saving money or paying off debt?

If you are currently making monthly payments on a large loan, such as a car loan or mortgage, check your current interest rate against today’s rates. The Federal Reserve recently cut the federal funds rate, which means interest rates on loans and credit cards have also been falling. Refinancing could save you a lot of money if rates have dropped since your purchase.

Keep in mind that the exact rates you qualify for will depend on your income, credit score, and other factors. Additionally, there can be origination fees and other costs when refinancing. So crunch the numbers and see how much refinancing could potentially save you before applying.

Read more: Want to refinance your mortgage? Here are 7 options.

The first quarter is a great time to connect with your financial advisor to reflect on the past and discuss the future. An in-depth conversation about annual tax rules, budgets, investment performance, and the year ahead can reveal insights and needed adjustments for your financial plan.

You can initiate that conversation with the five expert-recommended questions below.

Learn more: What is a financial advisor, and what do they do?

Ken Robinson, founder and senior advisor at Practical Financial Planning, explains, "Tax law is changing all the time, and practices that a consumer is used to — or has avoided — could be treated differently in the new year." Robinson recommends tackling any tax law changes with your advisor as early as possible. This gives you more time to adjust and implement new strategies.

Jennifer Kohlbacher, director with wealth advisory Mariner, adds that tax changes can prompt a range of actions, from updating estate planning documents to allocating funds to 529 plans for the grandkids.

Learn more: Everything you need to file your taxes on time

Gregory Luken, founder of Luken Wealth Management, recommends asking your advisor what you can do independently to support your financial plan. Market conditions and personal circumstances change. Those changes may prompt the need to save more, redirect your tax-deductible contributions to a different account, or update your estate planning documents.

“There are only four variables you can control,” Luken explains, “but those four are enough.”

Luken says there are always external economic factors pressuring your financial plan, but you have control over how much you invest, how long you invest, how you allocate your investments, and what you spend relative to your income.

Learn more: How to start investing: A 6-step guide

Jake Falcon, CEO at Falcon Wealth Advisors, poses the alignment question to help savers stay true to their priorities. "Many people get caught up trying to make the biggest return they can every year. What's more important is that your portfolio aligns with your financial goals," Falcon explains.

For example, a retired couple focused on preserving capital shouldn't be invested in volatile growth stocks like Nvidia (NVDA). The risks of poor alignment include emotional stress, missed goals, lack of direction, and increased risk exposure, according to Falcon.

Learn more: Create a stock investing strategy in 3 steps

Joel Callagan, vice president at Wealth Enhancement Group, recommends a first-quarter conversation with your advisor about giving strategies. "The Tax Cuts and Jobs Act significantly changed the ability to deduct charitable giving," Callagan explains. Your advisor can identify when more aggressive strategies make sense, such as super funding a donor-advised fund.

Donor-advised funds function like charitable foundations for individuals. You contribute to the fund and the fund, in turn, donates to charities. Your contributions earn an immediate tax deduction. The fund’s undistributed assets also grow tax-free. Superfunding involves donating two or more years of contributions to the fund.

Learn more: How much does a financial advisor cost?

The first quarter is a good time to review how investments have performed relative to their benchmarks, according to Jeff DeLarme, founder and president of DeLarme Wealth Management. This question may broaden your perspective, particularly if you tend to compare your performance to one benchmark only, like the S&P 500. It can also initiate a productive discussion about risk, portfolio allocation, and the advisor's skill at choosing appropriate investments.

"To be sure," DeLarme explains, "even the best investment managers and advisors are likely to underperform from time to time, but we should strive to understand why we performed the way we did."

Learn more: Alternatives to having a financial advisor: How to build wealth without one

The first quarter is a productive time to meet with your financial advisor, but whether that's the only time you two connect depends on your circumstances.

Chad Gammon, CFP and owner of Custom Fit Financial, schedules meeting cadences according to the maturity of the client's financial plan. With new clients, for example, he prefers to meet three times annually. Later, the frequency can dip to one conversation every year or two, unless there are specific complexities to address.

If you are comfortable with your net worth growth and you do not expect major life changes in the short term, a once-annual meeting can be sufficient. Life changes that should prompt more frequent conversations include retirement, divorce, or an inheritance. Any of these can change your income or liquidity needs or your risk tolerance.

Small changes to your financial plan in the first quarter can yield big results. Don't miss the opportunity to review your goals, money management habits, and investment performance with an experienced professional. If strategy changes are needed, you'll have nearly the full year to benefit from their impact. As well, your financial advisor will appreciate the conversation, and you will feel more connected to your wealth plan.

With an unpredictable stock market and stubborn inflation, having a well-funded savings account is one of the best moves you can make for your finances.

What that looks like could be different for everyone. But a common goal for those just getting started is reaching $10,000 in savings — a significant achievement, but not so large that it feels unattainable. A $10,000 savings fund goes a long way toward goals like saving for a big vacation, a down payment, or a rainy day fund.

But when it gets down to the nitty-gritty, how do you save $10,000? And what if you wanted to do so in one year?

As the saying goes, “The only way to eat an elephant is one bite at a time.”

Whether your savings goal is $1,000 or $10,000, you’ve got to take it one dollar at a time. You do that by breaking it down into smaller chunks.

For instance, instead of thinking about saving $10,000 in a year, try focusing on saving $27.40 per day.

If you break this down into savings per day, week, and month, here’s what you’re looking at in terms of numbers:

Per day: $27

Per week: $192

Per month: $833

Keep in mind that those numbers could slightly change depending on the number of days and weeks in the month.

If you want to save $10,000 but don’t have a purpose behind it, you’re unlikely to succeed.

Your purpose will be what drives you on those days when you just want to scrap it all and go on a shopping binge.

So, what’s your purpose? Some examples might be:

Build an emergency fund

Save for a down payment on a house

Jumpstart your kid’s college funds

Improve your overall financial well-being

Save for a bucket list vacation

You get the idea. The bottom line is that a $10,000 savings fund isn’t something you can knock out in a short amount of time. Having a purpose, with some determination behind it, will help you get there.

Let’s get down to the practical. Here are some ways you can really put together $10,000 in savings by the end of the year.

Before you can get started, you need to know your baseline. And how much you make in a year combined with how much you spend is just that.

First, you need to make sure $10,000 is a reasonable amount. If that’s a third of your yearly income, you might want to readjust — maybe $5,000 is a better goal.

Next is making sure you know everything that’s coming in and out of your checking account. That’s your income (and your partner’s if you’re part of a couple) and every expense you incur monthly, quarterly, and annually.

Record all the fixed expenses in your monthly budget. That’s things like rent or mortgage payment, car payment and health, home, and car insurance costs. For variable expenses — those that may change monthly, like dining out, power bill and so on — read over your bank and credit card statements to get a monthly average. If you’re spending $300 a month dining out, for example, then that’s an area where you could potentially cut back.

Read more: Fixed vs. variable expenses: Key differences and how to budget for each

Once you have a clear picture of what’s going in and coming out of your bank account, you can proceed to the next step.

You’ve got all the information you need. It’s time to make the game plan.

One of the easier-to-follow budgets is a zero-based budget. With this system, you take your income minus your expenses to equal zero every month. It means every penny you earn should be allocated to a category in your budget (including savings).

You should have predetermined how much you plan on spending at the grocery store for the month, how much you’ll spend on entertainment options, how much you put toward gas and transportation, and so on.

Once you’ve covered all your necessary expenses, you can start putting extra money toward savings. And that’s where you’ll notice how much momentum you can gain by cutting back spending in certain areas to reallocate that money toward your $10,000 goal.

Here’s where the hard part kicks in. Since it can be impossible to trim your biggest expenses, since they tend to be necessities like rent, you might have to nip around the edges.

Is it time to part ways with that gym membership you’ve only used once in the last six months? Maybe you can let go of one of your multiple streaming service subscriptions or switch to a cheaper cell phone plan. You could try going out once a week for dinner instead of twice, or resolve to place fewer Amazon orders. These are the temporary sacrifices you’ll need to make to push your income away from expenses and into savings.

As you’re reviewing your expenses, really think about what is a “want” and what is a “need.” The power bill and the rent payments are needs. Dining out two to three times a week is a want.

Just like you’ll need to cut back in certain areas, you also might need to step it up in certain areas. Adding to your income is just another temporary sacrifice you can make while trying to save money.

You may consider a side gig as a rideshare driver with Uber or Lyft, or take a part-time job on evenings or weekends. Maybe you have a hobby you’ve wanted to monetize — now is the time!

Another option is exploring passive income opportunities. For example, if you travel a lot, consider renting out your home occasionally. Get creative and think about a few ways you can make a little extra money to supplement your usual income. Remember, this doesn't have to be forever.

Deciding where to put the $10,000 you’re working so hard to save will depend largely on what you plan to do with the money.

If you’re trying to build up your reserve funds or save for a specific goal, the money should be easy to access, but not necessarily an account you’ll use to manage everyday transactions.

Good savings account options include:

High-yield savings account (HYSA): These accounts pay much better interest than typical savings accounts. As of June 2025, some of the best HYSAs offer interest rates upwards of 4% APY. They also typically don’t have restrictions, like monthly fees or high minimum balances, but they also don’t usually come with debit or ATM cards.

Money market account (MMA): MMAs work similarly to HYSAs in that they provide a solid home for savings that is available without penalty when needed, but isn’t for day-to-day use. Money market account interest rates are also comparable to HYSAs, but may require a higher minimum balance and limit your monthly transactions.

Certificate of deposit (CD): A CD is a type of savings vehicle that earns a fixed interest rate over a set period of time — typically between three months and five years. They’re different from a savings account because the money can’t be accessed until the account matures. But the best CDs also usually have higher interest rates than savings accounts.

Compare your options at different banks and choose the account that makes the most sense for you and your savings goals.

Once you’ve developed your plan, one of the best ways to build your savings is to automate your contributions — whether weekly, bi-weekly, or monthly — and let it work for you in the background while you carry on with your other financial goals.

Just remember the dates you set up and the frequency. Automatic means automatic. So if $500 comes out on the 15th of every month, don’t be surprised when that $500 has been moved over to your savings. Leave yourself enough money to cover your expenses every month.

Read more: 3 smart things to do when your savings account hits $10,000

The holiday season is fast approaching, and for many, it’s one of the busiest and most expensive times of the year. In fact, holiday shoppers plan to spend an average of $1,638 on gifts, travel, and entertainment this year, according to PWC’s 2024 Holiday Outlook. That’s a 7% increase over 2023 and a 15% jump from 2022.

While making travel plans, hosting gatherings, and shopping for loved ones can be exciting, you could end up throwing your budget out of whack if you aren’t careful. Consider these six strategies to keep your holiday spending in check and start 2025 debt-free.

Ideally, the key to ensuring your holiday spending doesn’t make a massive dent in your budget is to factor it into your budget throughout the year. However, if you haven’t been saving for the holidays, you can still be strategic about spending and saving money now.

A sinking fund is a savings account meant for a planned future expense that doesn’t fit into your regular monthly budget, such as a vacation, home down payment — or holiday shopping.

By setting aside a bit of money on a consistent basis, you can spread out the expense and avoid taking on new debt or scrambling for funds when you need them. And there is still some time between now and the height of the holiday season you can use to build up savings for holiday expenses such as gifts, parties, decorations, and more.

Review your budget to see how much you can comfortably afford to set aside each time you get paid. You may also want to revisit your current savings goals and see if you can adjust your savings account contributions to prioritize holiday savings until the end of the year.

Read more: What is a sinking fund, and why do you need one?

Some banks and credit unions offer accounts specifically designed for holiday savings.

For the most part, they are similar to traditional savings accounts. However, they may come with lower fees or higher interest rates to encourage saving.

Keep in mind, though, that there may be minimum balance requirements or penalties for withdrawing money before the holidays. If you’d prefer a savings account with fewer restrictions, you can also consider a high-yield savings account, which pays above-average interest and can be used year-round.

Read more: What is a holiday savings account?

If you have a rewards credit card, now is a good time to review your rewards balance. See if you have enough points or cash back to redeem for gift cards or a statement credit (or even rewards miles for upcoming travel) to offset holiday costs.

It also pays to be strategic about how you use your rewards card over the next couple of months. For example, if your card offers rotating categories that earn a higher rewards rate, choose one that aligns with your holiday spending plans, such as department stores or restaurants. Of course, if you do put holiday expenses on a card, be sure to stick with your budget so you can pay off the full balance each month. Otherwise, interest charges will wipe out your rewards, and then some.

But even if you don’t have a credit card — or don’t want to use one — you can still earn cash back on your holiday spending. Cash back browser extensions such as Rakuten, Honey, and Capital One Shopping award cash back on purchases made at popular retailers, regardless of the payment method you use. Plus, they can also automatically search for and apply coupons when you shop online.

Read more: 2024 Discover rewards calendar: Earn 5% cash back at Target and Amazon in Q4

Ultimately, the holidays aren’t about overspending or buying luxury gifts for everyone on your list. Opting for a homemade gift can be a more intentional, heartfelt, and affordable way to show your loved ones that you’re thinking of them this season. Think: Baked goods, handmade ornaments, or even handwritten letters.

Another option is to set up a gift exchange with your friends and family. If you have a larger family or friend group, buying an individual gift for every person on that list can significantly dent your budget. If you can coordinate a gift exchange, it will save you money, and you’ll be able to put more time and thought into the perfect gift for whomever you’re shopping for.

If you’re hosting a party or holiday dinner, pre-planning can help you manage the costs. Buying items in bulk, purchasing non-perishables ahead of time when there’s a good sale, and spending some time searching for coupons can help you keep costs low.

Another creative way to save time and money on holiday meals is to host a potluck dinner. Reach out to your guests and see if everyone can commit to bringing one dish with them to your event. That way, you can save money on groceries — and avoid the headache involved with cooking multiple dishes.

These days, many Americans are struggling to pay for even their most basic living expenses. Although relying on credit cards when money is tight is rarely advised, the truth is that sometimes, it’s necessary.

However, you can use credit responsibly this holiday season, even if you need to carry a balance for a few months. The key is to choose a card with an introductory 0% APR, which allows new cardholders to avoid interest charges for a limited time.

When you open a 0% APR card, the purchases you make will not accrue interest until the end of the introductory period. Typically, intro periods last anywhere from six to 21 months. After that, your balance begins accruing interest at the standard APR. So, as long as you pay your balance in full by the time your intro period ends, you won’t accumulate any extra debt in the form of interest charges.

It’s important to stress that this strategy should only be used if you have a holiday budget in place and a plan for paying off your balance in time. If you struggle with managing debt or controlling spending, this probably isn’t the best route to take.

Many people struggle to fit holiday spending into their budget, and for good reason. With the rapidly rising cost of living and competing financial obligations, it can be a challenge to find spare funds to direct toward holiday expenses without having to make sacrifices in other areas. However, with the right strategies, you can lessen the financial blow of the holiday season.