Humphrey Yang: Make These 3 Financial Moves Before 2025 Ends
Written by
Ashley Donohoe
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Rebekah Evans
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As 2025 wraps up, you should take some time to review how your finances have changed, revisit your goals and make a plan for the new year. It’s also not too late to take last-minute steps that can help you save money on taxes, boost your retirement fund and head into 2026 with more peace of mind.
In a YouTube short, personal finance expert Humphrey Yang recommended making these three last-minute financial moves. Learn how each step can boost your finances and get some bonus tips.
Maximize Your 401(k) Match
Through Dec. 31, 2025, you can contribute a maximum of $23,500 to $34,750 (depending on your age) to your job’s 401(k) account for the 2025 tax year. Even if you can’t reach that limit, Yang recommended at least contributing the maximum of your pay that your employer will match.
“It’s honestly the easiest and highest ROI move because your employer is literally giving you free money for your retirement contributions,” he said.
Also, if you lack a 401(k) or want an extra place to invest money and enjoy tax advantages, consider a Roth or traditional IRA. These accounts have lower contribution limits of $7,000 (if younger than age 50) or $8,000 (if age 50 or older) for 2025 and you should check the IRS rules on Roth IRA contributions.
As a bonus, your 401(k) or IRA contributions might qualify you for the saver’s credit, which is worth up to $1,000 for single filers and $2,000 for joint filers who don’t exceed income limits, according to the IRS.
Harvest Your Tax Losses
If you use a taxable investment account, it’s smart to find ways to reduce how much income tax you’ll owe on your net gains for the 2025 tax year. Yang recommended tax loss harvesting for this purpose.
“All of this really means is that if you have any realized gains in your investment account this year, like if you sold the stock and you made some money, you can balance that out by selling a different stock that’s currently at a loss,” he explained.
The deadline for these investment sales for the 2025 tax year is Dec. 31, 2025.
Note that if you end up having more capital losses than gains, the IRS allows you to use up to $3,000 of the excess losses to offset your regular income and carry other losses forward. Consider working with an advisor who can help you save with smart tax planning.
Check Your Cash Reserves
Yang’s final tip was to review all the cash you have in various bank and brokerage accounts and any other highly liquid assets. The goal is to ensure you have a sufficient emergency fund and cash reserves for higher expenses you may face in 2026.
The Federal Reserve’s Report on the Economic Well-Being of U.S. Households showed that 45% of American adults didn’t have cash to cover even three months of their expenses in 2024. So, you’ll improve your financial security by taking Yang’s advice to have emergency savings of three to six months’ worth of expenses.
You should also revisit your budget to identify potentially rising expenses and see how much money you’ll need. While Yang listed groceries, car insurance premiums and gas as examples, health insurance premiums are another concern for many Americans.
If you fall short of cash for these needs, consider cutting some nonessential expenses or finding extra income opportunities.
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