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12 Things You Must Do Once Your Savings Reaches $25,000

Find your next steps after reaching a major financial milestone.

By Jenny Cohen

Edited by Eric McWhinnie

Updated Dec. 17, 2024

Saving $25,000 is a great accomplishment; especially if you're saving for financial goals like buying a home, retiring early, or taking that big vacation, you’ve always wanted to take.

However, once you reach that goal, there are certain things you should do to ensure that your money continues to work for you.

If you’re getting close to your goal of saving $25,000 or have already reached it, check out some things you need to do next.

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Get a high-yield savings account

A great thing to do when you begin your savings journey is to get a high-yield savings account that can help you earn additional interest on the money you’re saving.

It’s never too late to open a high-yield savings account if you haven’t already. Interest rates are higher than they’ve been in years, so open one as soon as possible.

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Keep going

You might think that you’ve reached your goals so you can quit saving now, but that $25,000 may only be the start of your savings goals.

Continue to build on the good money habits you’ve developed to save that money and add more to your savings to keep going. You’ll be surprised at how easy your next goal will be to reach now that you know how to save that well.

Set new goals

Goals can be great motivators to help you set certain objectives and reach milestones when saving money.

Consider resetting those goals when you reach a certain level to adjust your expectations or find new things you’ll need the next $25,000 to cover.

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Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

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Fill up your emergency fund

It’s good to have goals for how you want to spend the money you’ve saved, but there could be an emergency bill that pops up like a major home repair, medical bill, or car accident.

Top off your emergency fund to help cover any surprising costs without having to dip into the $25,000 you’ve saved for something else.

Try to get three to six months of expenses covered by your emergency fund and set some boundaries for yourself so you only use it for actual emergencies.

Pay off debts

Setting goals for things like a home or an early retirement is a great use of the $25,000 you’ve saved.

But you don’t want to apply for a mortgage with debt on your credit report or retire with lingering debt when you’re on a fixed income if you don’t have to.

Try to use some of the money you saved to pay off debts so you don’t have extra costs — and extra interest — following you.

Boost your retirement contributions

You can use the money you’ve saved to pay yourself now, but it’s also important to pay your future self.

Add some money to your retirement accounts that can earn compounding returns until you’re ready to retire.

You should also consider bumping up your employee contributions to take full advantage of any employee-matching funds your company may have.

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Invest in your kids

College is expensive. If you have extra money, consider putting it into a 529 account for your kids to give them a boost and avoid incurring as much debt when they go to school.

You may also receive some tax savings from your state for contributing to a 529 plan.

Consider a financial planner

It can be tough to decide what to do with a large sum of money. Perhaps you want to invest but are unsure where to start. Or your goal was to find ways to save money, and you didn’t have plans after that.

A financial planner is a good person to talk to when you need help figuring out what to do next and where to put your money.

It’s a good idea to talk to a few planners first and find one who best fits your needs and understands your particular goals.

Invest in stocks

Stocks can be volatile, but they can also earn you more money over time than a high-yield savings account or other investments.

Find a few individual stocks you might want to invest in or consider a basket of stocks, such as an index fund that tracks the stocks of a particular index like the S&P 500.

Earn up to a $300 bonus and grow your money with up to 4.00% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.00% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account or overdraft fees⁵ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.⁶ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

Open your SoFi account and set up direct deposit

Make a charitable contribution

You may have saved money for yourself, but perhaps you also want to share some of it with others.

Charitable contributions are a good way to give back while also investing in your community’s future. You may want to give it to a school or a program that helps those less fortunate.

Remember to keep track of your donations, as you may be eligible for tax benefits.

Splurge a little

It can be hard work to save up $25,000 and make the sacrifices necessary to accumulate that cash.

While you may have a specific goal for all of it, you can also reward yourself with a little splurge, like some clothes you’ve had your eye on or going out to dinner a few more times than usual.

It’s important, however, to keep your splurges in perspective and not go overboard with spending money now that you’ve saved it.

Do nothing

It took a lot of hard work to save up that $25,000, so it’s OK if you’re not ready to turn around and spend it.

Instead, continue to follow the habits you’ve started so you keep saving money. Consider putting your money into an investment like an index fund.

You can earn extra money while you research different possibilities for what to do next.

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Bottom line

Saving $25,000 can be a big financial milestone, especially if you’ve struggled financially in the past.

It’s good to continue your positive financial habits even after you’ve reached your goals. Set new goals to get your next $25,000.

Also, consider options like using the best rewards credit cards that you pay off each month while building up extra perks and points to help build on your financial success.

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