Make these money moves in 2025

Happy 2025, On the Money readers!

The new year is an ideal time for a fresh start. I'm going to dedicate this week's newsletter to key areas to focus on financially in the next 12 months.

If you're just starting out in your career, you might think you cannot afford to save for retirement yet. But every little bit really adds up over the long haul. The power of compounding is a beautiful thing. 

Here is a great example from Investopedia: Let's say you start saving $100 a month at age 20. You earn an average of 4% annually, compounded monthly across 40 years. 

By age 65, you will earn $151,550. And, yet, your principal investment was just $54,100.

Your money twin, meanwhile, does not start investing until age 50. They invest $5,000 initially, then $500 monthly for 15 years, also averaging a monthly compounded 4% return. 

By age 65, your money twin only earns $132,147, with a principal investment of $95,000.

The moral of this story? Start saving for retirement as soon as you start working.

This robot dog meant to comfort dementia patients wags its tail and turns heads at CES. Meet Jennie here.

Bundle retirement accounts together to reach your goal. REUTERS/Jonathan Ernst

If you've been in the workforce for a while and are changing jobs or have changed jobs in the past), it's often a smart move to consolidate your retirement savings into an IRA (Individual Retirement Account), especially when the account is small. 

You really do not want to have a bunch of different retirement accounts at various providers because it is harder to keep track of multiple investments. Also, when you roll over your savings, you take control of your money. 

My advice? Pick a provider with lower fees as well as better performance, which will make a big impact on your overall returns.

Do you have any questions about your retirement savings? Please send them to me at onthemoney@thomsonreuters.com.

Start small if you want to make your 2025 financial resolutions stick. REUTERS/Maye-E Wong

Financial resolutions start the new year on the right foot. In fact, 65% of Americans are drawing them up for 2025, according to a new study from money manager Fidelity Investments.

The winning responses are classic: Save more money (43%), pay down debt (37%) and spend less (31%).

The problem with resolutions is that people try to tackle too much. Experts say it is key to start small.

Here is some helpful advice to make your financial resolutions a reality.

Do you need last-minute tax help? Are you looking for cheaper homeowners insurance? Send money questions to onthemoney@thomsonreuters.com, and I'll tap my extensive source network and braintrust for expert advice.

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It has been incredibly hard to focus on anything amid the news of the devastating wildfires in Los Angeles. We have many friends, family members and colleagues living in the area. 

When disaster strikes, it is a stark reminder to check your insurance policy and see what is covered if you rent or own a home. 

For anyone impacted by the California wildfires, the Insurance Information Institute compiled this incredibly useful information about insurance coverage as well as detailed guidance on how to file a claim.

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