4 Best Ways To Invest Your Last Paycheck of 2025
Written by
Chris Adam
Edited by
Jenna Klaverweiden
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Use your final paycheck of the year intentionally so your money continues to work for you long after 2025 ends. That’s the advice from Taylor Kovar, founder and CEO of 11 Financial. “Your last paycheck of the year is a great opportunity to finish strong and set yourself up for success next year,” Kovar said.
With those goals in mind, here are four expert-backed ways to invest your last paycheck of 2025.
Pay Off Your Debt
According to Brandon Gregg, CFP, an advisor with BBK Wealth Management, no matter the time of the year, paying off debt will help your financial position.
He said that if funds aren’t earmarked for anything, pay down some debt. It may help you as you plan your budget the upcoming year.
Maximize Your Retirement
“Once the new year rolls around, contribution amounts will start fresh in your work retirement plan,” Gregg said. “It may make sense to do more in your retirement before this if the funds are not planned for something else.”
Melanie Musson, a finance expert with Quote.com, said that if you haven’t maxed out your IRA for the year, invest in your Roth IRA. If you can take advantage of interest-bearing investments while also getting tax advantages, you should. Similarly, if your employer offers 401(k) matching and you haven’t invested the limit for matching yet, you should invest as much as you can from your last paycheck, Musson added.
Maximize Your Charitable Contributions and Deductions
Many people like to give toward year-end. In order for charitable deductions to be made for the current year, they must be made by Dec. 31. Gregg said that if you have plans for last-minute giving, use that last paycheck toward that goal if it makes the most sense for your financial situation.
Review Your Budget for the Year
After receiving your last paycheck, you will now know exactly what your income is for the year.
“It’s a great time to review how you did on your budget,” Gregg said. “Based on this analysis, it may open up to you exactly how you should use this last amount of income to better your financial situation.”
If you hit all of your goals, then maybe it’s time to treat yourself to something you’ve really been wanting or something that will better yourself in the upcoming year.
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