How to save more money in 2025: Tips, goals & accounts you can use

Want to save more money in 2025? You’re not alone. Every year, “save more money” ranks among top New Year’s resolutions—along with losing weight and exercising more. But when 80% of those resolutions fail by February, it can be hard to stay motivated and see a real difference in your account balance, but also your day-to-day life.

Ready to defy the odds? Read on for expert tips, practical goal-setting guidance and account recommendations to help set yourself up for savings success.

It likely doesn’t come as a surprise that the fundamental first step in saving more money is to reel in your spending. One way to do that is to categorize your current spending into needs, wants and wishes. Needs are critical items like housing, food and health care. They’re fairly non-negotiable. But as you take inventory of wants, like takeout and vacation, and wishes, like a larger or more luxurious home, you can look for places to pause or cut back on spending and refocus your goals.

“Look at your spending habits. Dining out, offhand entertainment expenses. Review your mindless subscriptions—like subscribe-and-saves. Your streaming services. Your cable. Ask yourself if those are consistent with how you want to spend your money,” says Karl Jensen, financial planner in Advice & Planning Services at Thrivent.

Knowing where your money is going can help you pinpoint opportunities to “reroute” some of that into savings. Ashley and Paul Silber, Thrivent clients in Lake Elmo, Minnesota, suggest creating a tracking document to help.

“We created a budget spreadsheet that included our assets, liabilities and net worth on one tab. Then our monthly expenses are on another tab,” explains Ashley. “If we didn’t have the money, we didn’t spend it. We tracked it down to the dollar for probably three years.”

It’s easy to click the “add to cart” button or stop for fast food on the way home from an errand and get caught up in that desire for instant gratification. Especially with the temptation and pressure to “keep up with the Joneses” that’s often perpetuated by social media. But those quick, unplanned purchases can add up quickly. When shopping, carefully stick to a list and give yourself time to think over purchases before making them. You always can go back for the item after you’ve mulled it over and reviewed your budget.

Put simply: Don’t spend more than you make. In not leaving anything left for your savings, you can spiral into a habit of racking up credit card debt or relying on money you’ve borrowed. Ask yourself: If you knew the brand-new pair of jeans and sweater you charged for $100 would cost $200 by the time your credit card interest payments were complete, would you still want it?

Saving more money starts with living within your means today so you can turn your goals into realities down the line.

As you rethink your budget, you’ll want to pick a budgeting strategy that prioritizes saving. Take, for example, the “pay yourself first” budget, or what many people call the 80/20 budget. With this particular method, you immediately “pay yourself first” by putting 20% of your income toward savings, then divvy up the remaining 80% for your needs and wants. You won’t need to worry about having money “left over” to save, since it’ll already be done. The good news? There are several different types of budgeting techniques out there. So, you can be sure there’s one that works for you.

When taking a look at your excess spending, you’ll quickly realize how subscriptions and automatic payments make it easy for money to leave your account. Ami Lopez, a Thrivent financial advisor in Federal Way, Washington, recommends turning that structure on its head by using it to streamline money coming in.

“Let’s say your gym membership takes out $23 a paycheck. You realize later that that’s over $500 a year. You could set up your direct deposits into savings the same way. If you never touch it, you won’t spend it,” Lopez says.

While it can be hard to come to terms with your current financial state—including your debt and account balances—getting an accurate and full picture of where you stand is important to make changes and improve your financial decision-making.

“Get everything out and in the open,” Lopez says. “Know your numbers and make sure your spouse knows them, too.”

That’s a key message he’s shared with Thrivent clients Roman and Melissa Mcknight in Tacoma, Washington.

“Staying in constant communication about how we’re spending our money forces us to be more careful,” Melissa says. “We’ll revisit our budget a couple times a month and frequently do some inventory. It helps us prevent guilt because we stay on the same page.”

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Take a minute to think about why, or for what, you’re trying to save. Then transform that list of “things” into goals, especially ones that are SMART: Specific, measurable, achievable, relevant and time-bound.

For example, instead of simply saying you’d like to save for a car, a hypothetical SMART goal could look like saving for a car over the next five years by setting aside $500 per year in a CD to have $2,500 ready for a down payment.

The time-bound aspect is perhaps the most important factor in deciding where you’ll save your money. You’ll want to tailor your savings account selections to whether your goals are short-term, mid-term or long-term.

• Short-term. These are typically goals you’d like to accomplish in three years or sooner. For these, you’ll want to save money in accounts you can access without a fee or penalty. In addition to traditional savings accounts and cash reserves, these also may include high yield savings, short-term CDs and money market accounts (depending on interest rates).
• Mid-term. Think of these goals as ones you’d like to check off in the next three to five years. They may be a solid fit for certificates of deposit (CDs)—which have relatively short maturity periods (usually up to 60 months)—in addition to I bonds and, in some cases, Treasury notes.
• Long-term. These are goals that likely will take more than five years to achieve, such as retirement. With time on your side, you may want to consider interest-earning investments, like mutual funds and brokerage accounts.

The timing and prioritization of your goals is entirely up to you. Perhaps you’d like to start socking money away for your toddler’s future college education but want to buy a larger home in the next two years for your growing family. Or maybe you’re five years out from retirement but want to save for the travel you’ll do in that next exciting chapter. Regardless, here’s an overview of common goals to save for—along with accounts and tools you can use to do that efficiently.

Speed up your savings

Wondering how you can save for your goals faster? Discover strategies to help accelerate your savings and achieve your dreams sooner.

Check out our hacks for quick savings

Emergencies can happen anytime to anyone—whether that be a flat tire or an unexpected surgery. Their unpredictability—but inevitability—is why an emergency savings fund is such a critical financial tool to have on-hand.

You may have heard the general rule of thumb to save at least three to six months’ worth of expenses in a rainy-day fund. But if that amount feels out of reach right now, it’s OK to make incremental progress.

Lopez recommends starting with an initial goal of $1,000 and gradually working up to one month’s worth of expenses, then that up to a three to six months’ target. (Or more if you have a variable income.)

“Start small and build organically,” agrees Oua Xiong, a Thrivent financial associate in Eau Claire, Wisconsin. He reminds his clients, like the Silbers, that some emergency savings are better than none.

The Silbers prioritized getting an emergency fund in place before they began paying off their large amount of debt. “That really helped us sleep at night—knowing that if something did happen that was catastrophic or an emergency, we’d have that.”

When building up those reserves, it’s important to keep emergency funds in accounts that are liquid, protect your principal and have potential for growth. Those may include high-yield savings accounts, money markets, CDs and I Bonds.

Knowledge is power. But the average cost of college in the United States is $38,270 per student per year when factoring in books, supplies and day-to-day expenses.

Since this goal typically comes with a longer time horizon, you may have some additional savings options with potential tax advantages and financial aid opportunities—including 529 plans, Coverdell education savings accounts, IRAs, UGMAs and UTMAs, permanent life insurance and trusts, and a variety of other investments.

Explore college savings options

Retirement is a major milestone. And over the course of your career, there are many savings vehicles you can leverage to help make your golden years the most fulfilling they can be.

Take advantage of a variety of investments—including retirement savings plans, like employer-sponsored 401(k)s and individual retirement accounts (IRAs). You may also consider purchasing an annuity or whole life policy with a cash value component. By paying premiums to those kinds of products, you are, in turn, building up future retirement income.

Discover the best way to save for retirement

You love your kids and want the best possible care for them. And that comes at a premium.

A traditional savings account can help you accumulate funds for date night babysitters, summer camps and day programs, and even center-based or in-home day care, if you are expecting or have young children who may need care soon.

You also can help make child care more affordable for your family through diligent budgeting, employer benefits and financial assistance programs, and considering alternative types of child care.

Homeownership a key tenet of the American Dream. But with the current low inventory of homes and high mortgage rates, it can be hard to make buying a house a reality.

As you shape your savings for this goal, you’ll want to consider the down payment and monthly mortgage, but also additional expenses and fees like closing costs, home appraisal and inspection, home insurance and property taxes, and more.

Depending on how quickly you’re looking to buy, you may consider accounts that are fairly accessible but still allow your savings to grow while you house-hunt. Money market and high-yield savings accounts may be two great options. You also may consider certificates of deposit (CDs)—if you can wait the six–12 months for them to mature—or specific homebuyer savings accounts that may be offered by your state government.

Dive deeper into saving money for a house

Trying to get from point A to point B, but feeling blocked by a lack of funds? The average car payment for a new vehicle is $734 monthly. Used cars are at $525 a month. So, it’s important to do your research on the models and features you like, on top of if you’re eligible for a trade or other financing options.

As you assign a time horizon and dollar amount to this goal, ask yourself some key questions: What’s your commute like? Are there other forms of transportation you could take? Do you already have a drivable vehicle (and therefore, is a new one a want, or a need)? Can you hold off on this purchase until interest rates drop? Your answers can help you determine if a high-yield savings account, money market account or CD may be best.

Love is in the air—but the cost of weddings is inflated. The average 2024 wedding is setting couples back $33,000—up from $29,000 in 2023. This spike comes, in part, from the aftereffects of inflation and vendors looking to customers for help absorbing higher operating costs—whether that’s higher property rent leading to pricier venue rental fees, or more expensive groceries leading to costlier catering.

As you consider the best place(s) to save for the nuptials (either your own or your child’s), think about how long the engagement may last and/or how much time you expect before the proposal. A CD or high-yield savings account may be two solid options that also will help you earn a bit of growth.

Save for the big day

Some people prefer experiences over things. And vacations are often part of that. As you dream up the trip you want to take, make sure to account for the details, like how long you want to be gone, how you’ll get there (fly or drive), and what you’d like to get out of dining, entertainment and excursions.

They Silbers look for ways to save money on travel, like staying with friends or in Airbnbs, racking up hotel points and buying two one-way flights instead of one roundtrip ticket, when it makes sense.

Consider opening a separate traditional savings account dedicated to your vacation savings. That way, the funds are readily available, but you’ll reduce temptation to spend the money on other things.

Get more vacation-specific budgeting & savings tips

With so many financial obligations, it can be hard to find the means to give to the causes you care about. Freeing up space in your finances and setting aside savings for the purpose of generosity means that your dollars can make a difference.

Consider saving cash and other assets in a donor-advised fund (DAF) that can help you accumulate money toward charitable giving while enjoying potential growth and tax advantages.

You have bills to pay and mouths to feed. And if you’re like many Americans, you may be living paycheck to paycheck or at least feeling the squeeze when it comes to your grocery, energy and water bill. While you can set aside money throughout the year in a traditional savings account to save for these expenses, you also can save on them with a few helpful hacks and lifestyle tweaks.

• Adjust the temperature. Running your thermostat or faucet a little lower than usual can, in turn, lower your utility bills. Try also washing clothes in cold water to save on the cost to heat that up.
• Make savvy swaps. A little investment upfront may be able to save you money in the long run. Try swapping out old appliances or windows that may be inefficient or leaky. And try switching out existing lighting with LED bulbs.

• Shop smart. When spending is necessary, weigh the reusability of the items you buy. This is a key consideration for the Silber family. Their daughters, Felicity and Violet, are now 10 and 4. Their son, Luca, is 7.

  “We reused a lot of baby gear—car seats, strollers. Even today, I’ll buy nicer brands for Felicity knowing they’ll last and pass down to Violet.”

  The Mcknight family suggests cutting down on costs by buying in bulk and looking for discounts.

  “I love coupons, and I love a great deal,” Melissa says. “I pay attention to when things are on sale. When there’s something I do want, I do a few cost comparisons at other sites or stores. I also try to buy generic when I can.”

• Try a no-spend month. Challenge your family to a no-spend month from time to time.

“We don’t go out to eat and don’t buy clothes, just mainly essentials like groceries and utilities,” Ashley explains. “Those are good opportunities to finally eat through the food in our freezer.”

If a month doesn’t seem achievable, start with a no-spend week and go from there.

Saving money is a common goal—but often a daunting one. By putting these tips into practice, partnering with a financial advisor and staying consistent, you can break down mental and financial barriers to help give your savings a boost. Empowering you to have more financial stability and reassurance in the New Year—and beyond.