5 Money Moves You’ll Regret If You Want To Build Wealth in 2025
Written by
Cindy Lamothe
Edited by
Zuri Anderson
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There’s nothing like going around with a heavy conscience due to finances. It weighs on your mind, distracts you from the present and can even affect your relationships.
Financial stress like mounting debt, unexpected expenses or the constant worry about making ends meet, has a way of creeping into every aspect of our lives.
That’s why it’s important to be especially mindful of not making any money moves you’ll later regret. Below are some of the biggest to avoid this year.
Living with Debt
According to Abby Reed, co-CEO and financial advisor at Reed Financial Group, carrying high-interest debt, such as credit card debt, will harm your ability to build wealth because the monthly interest you pay will make it hard to save money.
Instead, reducing or eliminating consumer debt, such as credit card debt and personal loans, frees up your money to work for you instead of against you.
Her recommendations include limiting how much of your money goes into depreciating assets and aiming to increase the amount of money that goes into appreciating assets, such as retirement accounts, brokerage accounts and real estate. These types of savings and investment vehicles will allow you to grow your wealth over time.
“The earlier you start investing, the longer your money will have time to multiply with the power of compound interest,” Reed noted.
Not Opening Multiple Retirement Accounts
Saving in a 401(k) through your employer is a great start to building wealth, but you can increase your savings by opening multiple retirement accounts.
Reed advised opening a traditional or Roth IRA to put away even more money for the future.
“Saving money in a Roth IRA offers multiple tax benefits: You pay taxes on your contributions up front, but those funds grow tax-free and can be used tax-free in retirement. The IRA contribution limit for 2025 is $7,000,” she said.
Budgeting Too Strictly
You should aim for a balance between enjoying life to the fullest and planning for the future.
Spending money on traveling, making your home cozy or pursuing the latest TikTok trend can increase your quality of life, so long as you don’t overdo it, said Reed.
Set a limit on all the ‘extra stuff’ you can afford to buy each month, such as clothes, entertainment and dining out.
Making Impulse Purchases
Be mindful of how social media can influence your spending patterns.
“Social media influencers make content specifically to entice you to spend money, so try to avoid giving in to those impulse purchases,” said Reed.
While small purchases here and there may not seem like a big deal, those expenses can really add up over time and hold you back from building wealth.
Not Building an Emergency Fund
Not having a safety net for unexpected expenses can force you into debt when unexpected emergencies arise. A recent report found that 59% of Americans in 2025 don’t have enough savings to cover an unexpected $1,000 emergency expense.
According to Reed, you should aim to have two to three months worth of expenses set aside in a separate account for surprise expenses such as medical bills, home repairs or even a layoff.
This money is off-limits unless a true emergency comes up.
She also recommended putting your emergency fund in a high-yield savings account, because these types of accounts are easily accessible and allow you to earn a higher interest rate than a traditional savings account at a brick-and-mortar bank.
“Having an emergency fund to protect yourself when life throws curveballs will help you stay on track with building your wealth,” she added.
If you don’t have an emergency fund, she noted you may have to rely on credit cards and personal loans or dip into your retirement savings early, which will cost you extra in penalties and taxes.
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