10 Money Tips to Make Serious Financial Headway in 2021

The start of a new year is the right time to take stock of your finances and find ways to improve. If you want to close out 2021 in a stronger place financially than where you're starting out, here are a few key moves to make.

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It's easier to cut back on spending and boost savings when you actually know where your money is going. That's why it pays to map out a budget. Comb through last year's bank and credit card statements, see what your different spending categories amounted to, and choose some expenses to spend less on going forward.

ALSO READ: I Forgot About This 1 Expense, and It Threw Off My Whole 2020 Budget

Having emergency savings can spare you from racking up debt when unexpected bills arise. Your goal should be to sock away enough money to cover at least three months' worth of essential living expenses. That way, if you lose your job or get hit with a sudden bill you can't put off, you'll have that safety net to fall back on.

Saving for retirement is a good way to secure your future while also potentially reaping some near-term tax benefits. If you're not in the habit of funding an IRA or 401(k) plan, get started as soon as possible. And if you're currently contributing at some level, ramp up.

If you're new to investing, a little light reading on your part could help you assemble a well-diversified portfolio that serves as an income stream and helps you build long-term wealth. See what it takes to get started as an investor and how to maximize your money if you don't have a lot to work with.

ALSO READ: Got $1,000? Here Are 3 Stocks to Consider Buying Right Now

Credit card debt is bad news. It can wreck your credit score, cost you money in interest, and add a load of unnecessary stress to your plate. If you're carrying credit card debt, make a plan to kick it. Cut back on spending to free up cash, and look into consolidating your debt so it's easier and more affordable to pay off.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

A lower monthly mortgage payment could free up serious cash and help you meet other financial goals. If you haven't refinanced your mortgage in quite some time, now could be a time to apply, especially with rates being very competitive these days.

A higher credit score could be your ticket to a lower interest rate on a mortgage, a better credit card offer, and a host of other opportunities. You can increase your credit score by paying incoming bills on time, knocking out a chunk of credit card debt, and reviewing your credit reports for errors (and correcting any that you find).

ALSO READ: How These 3 Store Credit Cards Save Me Hundreds Each Year

If you own a home or vehicle, you probably pay a fair amount for insurance. Taking steps to lower that expense could leave you with more money to save or invest. One tactic to try is bundling your homeowners insurance and auto insurance, as using the same company for both will often result in a discount. You can also talk to your homeowners provider about updates you've made to your home, as certain features could result in a lower premium rate.

Many people rush through their tax returns each year and lose out on credits and deductions because of it. This year, pledge to get started sooner so you can approach your taxes more calmly. And also, if you're due a refund, you'll get it that much faster.

You may come into extra money this year, whether in the form of birthday gifts, a bonus at work, or even an additional government stimulus check. Figure out where that cash should go in advance so you don't end up wasting it. You may decide to divert some to your brokerage account, some to your IRA, and the rest to the credit card balance you've been wanting to get rid of for months.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Your goal should be to end 2021 in a better place than you are in right now. Make these moves, and you're likely to do just that.

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