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How to Boost Your Net Worth in 2025

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Strategies for Every Age Bracket

If your 2025 goals include boosting your net worth, there are many financial planning strategies that can help you get there. However, specific steps to take depend on what stage of life you’re currently in. In this article, we offer some tips to help you boost your wealth at every stage of life.

In your 20s

As you begin your career and take on responsibility for your own finances, it can be difficult to know where to start. However, the effort you put into building strong financial habits in your 20s can have the most impact on your financial stability down the road. That’s why it’s important to implement the following strategies as soon as possible.

  • Start saving. In your 20s, you have the power of time on your side. Take advantage of the immense power of compounding interest by saving early and regularly.
  • Invest. A great way to start investing when you’re young is through an employer-sponsored retirement plan or IRA. These accounts grow tax-deferred and can lead to significant savings by the time you reach retirement. Because you have the benefit of time on your side, you can take a more aggressive investment approach within these accounts. Additionally, as you’re most likely making the least money of your career — meaning you’re also in a lower tax bracket now than you will be later on — make sure to utilize the Roth IRA and Roth 401k tools available to you with these early dollars!
  • Start a health savings account (HSA). In your early years, opt for a high deductible health plan, as your health is likely in good shape. Then add funds to your HSA to achieve both tax deductions and tax-free growth. Then if you do need to visit the doctor, don’t use funds from this account — instead use your savings to pay for doctor visits to allow your HSA funds to continue growing tax-free.
  • Build an emergency fund. It’s wise to have at least three to six months’ worth of living expenses saved in a liquid account that you can tap into should unexpected expenses arise.
  • Avoid debt. Resist the urge to fund your lifestyle by taking out debt, as this is one of the fastest ways to lose control of your finances. If you carry student loan and/or credit card debt, focus on paying it off as soon as possible.
  • Create (and stick to!) a budget. A great way to take control of your finances is by implementing a budget early in life. Tracking your income and expenses and establishing spending goals can help you prioritize saving and avoid overspending.
  • Build relationships. Network with successful and motivated people who can teach you lessons they’ve learned throughout their own financial journeys.

In your 30s

As you enter your 30s, you may find yourself establishing deeper roots by taking on more career responsibilities, starting a family, purchasing a home, etc. Along with increased earnings, you may find that your financial responsibilities also increase, leading to increased financial complexities. The following strategies can help you remain on track toward your financial goals.

  • Revisit your financial goals. As your life changes, so should your financial goals. Consider how advances in your lifestyle impact your future goals and update your financial plan accordingly.
  • Review and adjust your investments. It’s important to continually review and adjust your investment allocation to help ensure it continues to keep up with your financial situation, investment timeline and ever-evolving goals.
  • Consider your changing insurance needs. If you’ve started a family, you may want to consider purchasing a life insurance policy to protect your loved ones should something unexpected happen to you. An umbrella policy can protect your assets from an unexpected lawsuit. It’s also important to make sure you have adequate medical, short-term disability and long-term disability insurance in place to provide for your family and protect the net worth you’ve worked so hard to build.
  • Maximize your retirement savings. In your 30s, it’s important to focus on saving as much as possible for retirement. While it may seem like a long way away, the contributions you make today can have a big impact on your eventual retirement security.
  • Plan for your children’s future. If your goals include paying for your children’s college education expenses, now’s the time to start saving. Consider opening a 529 college savings plan or other education funding vehicle.
  • Establish an estate plan. An estate plan plays a vital role in protecting your assets and loved ones. If you haven’t already, work with a qualified estate planning attorney to implement a will (including guardianship designations for your children), a trust, a living will and a financial power of attorney.
  • Focus on advancing your career. Most people achieve peak earning potential in their 40s or 50s, but the steps you take in your 30s to advance your career can establish a foundation on which to build future success. Consider seeking out opportunities for promotion, and take steps to achieve new skills and/or professional designations.

In your 40s and 50s

As you hit your peak earning years, it’s important to continue focusing on the future. Your 40s and 50s provide a great opportunity to ramp up your retirement savings and pay down any outstanding debt, such as your mortgage.

  • Update/enhance your estate plan. As your life and goals evolve over time, it’s important to make sure your estate plan keeps pace. Now may be a good time to consider implementing a trust to protect your assets from probate and preserve the privacy of your heirs.
  • Max out your retirement plan contributions. In the years leading up to retirement, it’s wise to make an effort to contribute the maximum allowable amount to your 401k and IRA(s), including catch-up contributions. Saving in a variety of retirement accounts with different tax treatments (traditional IRA, Roth IRA, taxable brokerage account, etc.) can help maximize your retirement withdrawal flexibility, resulting in tax savings opportunities.
  • Pay off major debts. If you maintain debt, such as a mortgage, it’s wise to focus on paying it off in your 40s and 50s. Doing so may allow you to enter retirement debt-free, thereby maximizing the retirement savings available to fund your retirement lifestyle.
  • Plan for healthcare expenses in retirement. Healthcare is one of the largest expenses faced by many retirees. Your 40s and 50s are a great opportunity to save for your future care needs.

In your 60s

As you enter your 60s, retirement is right around the corner! Now’s the time to set retirement goals and make concrete plans for how to achieve them.

  • Make a plan for retirement income. Work with your wealth manager to begin laying the groundwork for funding your monthly retirement income needs.
  • Establish a strategic withdrawal strategy. Your wealth manager can help you establish a tax-efficient retirement withdrawal strategy to meet your needs and help ensure your assets are well positioned to last throughout your retirement.
  • Reallocate your investments. As you near retirement, you may need to make some changes to your investment portfolio to help ensure you’re well positioned to achieve both long-term growth and your retirement income objectives.
  • Consider the timing of your Social Security benefits. The decision of when to begin taking Social Security is an important one that depends on many factors. You wealth manager can help you determine optimal timing.

In your 70s

As you enter your 70s, you may be retired or nearing retirement. Congratulations! Now’s the time to live out your retirement dreams. Your wealth manager can assist you in planning for retirement, aiming to help you make the most of your wealth building efforts.

  • Review your investments. Make any necessary adjustments to help ensure your assets are well positioned to last throughout retirement.
  • Remain flexible. It’s important to make changes to your financial plan as your life continues to evolve throughout retirement.
  • Regularly review your estate plan. Update your estate plan as necessary to make sure it continues to address your legacy wishes.
  • Enjoy your retirement!

Remember that financial planning is a dynamic process that should be revisited often as your life and situation evolve over time. At Creative Planning, our wealth managers support clients with custom financial planning services to meet their needs at every stage of life. To discuss how we can help you take steps to boost your net worth, schedule a call with a member of our team.

This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.

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