Here's How to Save $5,000 by the End of 2025

One of the best ways to prepare financially is to have extra money saved. You never know when a costly, unexpected expense may come your way. But if you have money stashed away, navigating stressful financial situations can be easier.

Saving an extra $5,000 in 2025 is an excellent way to prepare. I'll share a few tips to help you be more successful and show you how much money to set aside regularly so you reach your goals before the end of 2025.

1. Break your savings goal into smaller milestones

Are you feeling overwhelmed at the idea of saving several thousand dollars? Focusing on a big savings goal can be daunting and cause added stress. But breaking your larger goal into smaller, more manageable chunks can make your target savings milestone feel more achievable. If you want to save $5,000 in 2025, here are some more manageable ways to tackle your goal:

• Saving $1,250 every quarter
• Saving $416.67 every month
• Saving $192.31 every two weeks
• Saving $96.16 every week

Doing this can help you feel less overwhelmed. But there's another benefit. This strategy makes it easier for you to know how much money to set aside regularly to reach your goal before the end of the year. This way, you stay on track as you make progress toward your goal.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of December 27, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of December 27, 2024. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

Want to reach your savings goal sooner? Consider the Discover® Online Savings account, which offers a competitive 3.75% APY. That's more than nine times the national average savings rate. Click here to learn more and open an account today.

2. Keep your money in a high-yield savings account

Where you keep your savings fund matters. You should keep it in a bank account that earns interest. This will allow you to boost your bank account balance with no extra effort. But make sure you choose a savings account with a competitive APY.

Many traditional savings accounts offer meager APYs. However, a high-yield savings account can be an excellent place to stash your extra cash to maximize your earning potential. Many of the best high-yield savings accounts offer rates of up to 4.75%.

The higher the APY, the more you earn while your cash sits in the bank. Keeping your money in a high-yield savings account can make it possible for you to achieve your savings milestone sooner. Take advantage of the opportunity to earn more from interest.

Need a high-yield savings account? You could earn 3.90% to 4.75% APY right now. Check out our curated list of the top high-yield savings accounts to find your ideal account.

3. Automate the savings process

Do you sometimes forget to set aside money in your savings account? You're not alone. Another tip that can help you save $5,000 by the end of 2025 is to lean into automation. You can automate the process so you no longer have to remember to make manual contributions.

It's easy to set up automatic transfers through your bank. Once you do this, money will routinely be transferred from your checking account to your savings account. Doing this can help eliminate forgetfulness so you stay on track throughout the year. Plus it can save you time.

Don't delay outlining your financial plans for 2025

You may be wondering why we're discussing 2025 savings goals in December. Believe it or not, now is an ideal time to consider your financial goals for the upcoming year. If you wait until 2025 begins, you may get sidetracked. The above tips can help you be more successful. If you create a plan and put in the work, you can achieve your goal. I believe in you!