Why I'm Prioritizing My 401(k) Over Everything Else in 2025

Truth be told, I've already hit the max on my Roth IRA contributions this year ($7,000). But now that that's out of the way, my next biggest money goal is going all in on my 401(k). I'm on track to contribute the full $23,500 through paycheck deductions in 2025.

Here's why I think it's the best place to stash my money this year.

1. I'm playing catch-up on retirement accounts

In my 20s, I basically ignored retirement accounts. Not because I didn't care about the future -- I mainly didn't like the idea of "locking up" my money for decades.

Instead, I hoarded cash and put it into real estate. My dream back then was to build a mini rental empire.

And while that path had some wins, I now realize I missed out on huge tax advantages that come with retirement accounts -- especially 401(k)s and IRAs.

So now, I'm playing catch-up. I'm 40 now, and the money I stash into my 401(k) will likely stay untouched for about 20 more years. Plenty of time for compound growth and tax advantages all along the way.

2. I get an employer match

I must confess, even if this job didn't come with a 401(k) match, I still would've taken it (I love what I do!)

But I'm blessed with icing on the cake. My company does offer up to 6% matching on 401k contributions.

Every time I put money in, my employer throws in extra money. Their portion vests over time, but still -- it's "free money." I'd be an idiot not to take full advantage of it.

If you are lucky like me and have an employer 401(k) match, use it! Contribute at least enough to get the full match offer.

3. I'm too busy (and lazy) to pick investments

Between work, parenting, and my mid-life crisis hobbies (pickleball, anyone?). I don't have the time to research investments or play an active role in growing my money.

I'd much rather sit back and do the "index and chill" thing.

My 401(k) not only automatically deducts money from my paycheck each month, it auto-invests all the money into my chosen index funds.

So basically I don't have to do anything. Now that the system is set up, I just work and get paid and my account grows by itself.

4. Real estate doesn't excite me anymore

Ten years ago, I was fired up about real estate. I bought a handful of rental properties during 2015 to 2019, and partnered up on some commercial real estate deals, too.

I found a lot of opportunities back then. But these days, I'm struggling to find deals that make sense (or that I'm excited about). Housing prices have doubled, and so have the mortgage interest rates I used to be able to get from banks.

As boring as it sounds, my 401(k) is hassle free and requires zero work. "Boring" actually sounds pretty good right now actually.

5. It's a fun challenge to max out

I've never fully maxed out a 401(k) in a single year before. For me to do it in 2025 means contributing $23,500 -- which breaks down to just under $2,000 a month.

That's no small feat. Especially considering my wife isn't working this year and our baby is starting daycare next month (yikes).

But that's what makes it a cool challenge. Some months might be a little budget squeeze, but honestly, we'll make it work.

What are you prioritizing in 2025?

This year my goal is to stuff as much money into my 401(k) as possible, taking advantage of both the tax breaks and my employer match.

Your goals might look totally different -- and that's cool. Maybe it's saving your first $1,000, paying off a credit card or building a buffer in a high-yield savings account.

Whatever it is, choose something specific that moves the needle.

And if you want an easy first step outside of your 401(k)… Open up an IRA and set-up auto contributions. There's something beautiful about set-it-and-forget-it investing.