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

Find your next steps after reaching a major financial milestone.
Updated April 11, 2024
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It’s a great accomplishment to save $25,000 for your financial goals like buying a home, early retirement, or even that big vacation you’ve always wanted to take.

But there are certain things you should do once you reach that goal to make your money continue 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

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A great thing to do when you begin your savings journey is to get a top 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

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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

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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.

Get a personalized financial plan to reach your goals faster

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Fill up your emergency fund

maew/Adobe emergency fund note on banknotes

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

shurkin_son/Adobe housewife wearing headband and casual shirt paying utility bills

Setting goals for things like a home or an early retirement are great options for 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

fizkes/Adobe couple sorting out papers

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 make sure you’re taking full advantage of the employee-matching funds your company may have.

Invest in your kids

goodluz/Adobe family meeting real-estate agent

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

yurolaitsalbert/Adobe consultant discusses the terms of the contract with the young couple

It can be tough to make decisions about what to do with a good chunk of money. Perhaps you want to invest but you’re not sure where. 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 fits your needs best and has a good understanding of your particular goals.

Invest in stocks

PaeGAG/Adobe asian woman working with laptop

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.

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Make a charitable contribution

Syda Productions/Adobe young teenagers in warehouse packing donation boxes for charity

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

Shopping King Louie/Adobe in the mall with shopping bags

It can be hard work to save up $25,000 and make the sacrifices you need to make to get that cash built up.

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 don’t go overboard with spending money now that you’ve saved it.

Do nothing

okrasiuk/Adobe woman sitting on sofa

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 or high-yield savings account.

You can earn extra money while you research different possibilities for what to do next when you keep your money in a HYSA.

Bottom line

peopleimages.com/Adobe couple in home with laptop

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 a high-yield savings account or 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.


Robinhood Benefits

  • Earn more interest on your uninvested cash with 5.00% APY (as of April 12, 2024)
  • Get up to $50K of your deposits instantly, so you can jump on investment opportunities faster
  • Borrow money to increase your buying power with margin investing at 8% (as of Nov. 15, 2023) APY for Gold members
Join Robinhood Gold here

Author Details

Jenny Cohen Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.

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