5 accounts you can open today to be wealthier by this time next year

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• Now is the time to set yourself up to build wealth in the new year.
• Start by opening a savings account for emergencies and a retirement account for the future.
• Then, look at a brokerage account, a college savings account, and an HSA. 

There are a few moves you can make right now to increase your savings, wealth, and financial stability in 2025 — and beyond.

Here are five accounts you can open today to be wealthier by this time next year:

1. A savings account for an emergency fund

This cannot be stressed enough. Before you do anything else, save money in an emergency fund for unexpected expenses that may occur in your life. If you can save at least three to six months (although I always advise one year) of expenses in a savings account for an emergency like a job loss or long-term illness.

This will give you financial stability should something go wrong and also allow you to save in other ways.

I have had many conversations with people who come to me with questions on how to invest, buy property, or create multiple streams of income. The first question I ask is, "Do you have an emergency fund?"

2. A retirement account

If you have access to a corporate 401(k), start contributing to that account — and at least enough to receive any corporate match. This is a consistent way to save money for retirement and since it is deducted automatically from your income, you can set it, forget it, and watch it grow over time.

Whether you have a 401(k) or not, an IRA is also a good way to increase your savings. An IRA is an account at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis.

You can contribute to a Traditional IRA or a Roth IRA. With traditional IRAs, you deduct contributions now and pay taxes on withdrawals later, while Roth IRAs allow you to pay taxes on contributions now and get tax-free withdrawals later. Note that Roth IRAs have income limits, so make sure you qualify.

3. A brokerage account to invest

A brokerage account is a tool you can use to invest in the stock market. These are also called taxable investment accounts, to differentiate them from tax-advantaged retirement accounts like 401(k)s. You can open a brokerage account with an online broker or robo-advisor.

Brokerage accounts don't have the policies and restrictions that apply to retirement accounts like 401(k)s and IRAs. Annual contributions to retirement accounts are capped, and there are strict rules on when you can withdraw funds.

Brokerage accounts offer much more flexibility. You can deposit as much money as you want in a brokerage account, and you can invest in any of the assets offered by your broker, like low-cost index funds and ETFs. You can deposit when you want, withdraw when you want, and use the money for what you want and there is virtually no limit on investment options.

However, note that a brokerage account isn't a good place for your emergency savings, or money you'll need in the next five years. The stock market is cyclical, and you'll need to leave your money alone for the long term to make up for any losses.

4. A college savings account

A 529 plan is a tax-advantaged account that can be used to pay for educational expenses from kindergarten through graduate school. Anyone can open a 529 account, but they are typically established by parents or grandparents on behalf of a child or grandchild, who is the account's beneficiary.

If you have a child or grandchild, this is a great way to save for their education and a great way to avoid student loans if you are planning for college expenses. Each US state has its own 529 plan, but they are typically open to out-of-state residents as well (although you'll want to look into the tax treatments if you're choosing another state's plan). If the intended beneficiary doesn't use the money saved in a 529, the beneficiary can be changed to another family member.

5. An HSA account

A Health Savings Account (HSA) is a tax-advantaged account to help people save for medical expenses that may not be reimbursed. There is no tax levied on contributions to an HSA, the HSA's earnings, or distributions used to pay for qualified medical expenses. However, you must have a high-deductible health insurance plan.

Because unused balances at the end of the year can be carried forward into the next year, an HSA can also be used as a "triple-tax advantaged" supplemental savings account for retirement. Contributions are tax-deductible, earnings grow tax-free, and withdrawals are tax-free when taken for medical expenses at any age.

I have a friend who swears by her HSA. She uses it to pay for new glasses and any dental work that falls outside of her dental insurance, and she is never caught off guard by medical expenses that may arise throughout the year.

This article was originally published in December 2023.