9 Money Moves to Make Before 2020 Ends

Many of us can't wait to say goodbye to 2020 and start fresh in 2021. But before this volatile year wraps up, it pays to give your finances a closer look. Here are a few key money moves to make before the new year begins.

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As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

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Your income and expenses may look different in 2021. Maybe you're starting a new apartment lease, or you're expecting a bump in your paycheck. That's why now's the time to map out a budget for the upcoming year. Figure out what your income will look like and how much you can afford to spend without risking dangerous debt.

We don't know what the economy will look like in 2021, nor can we predict whether jobs will become more or less secure. That's why it's crucial to have a healthy level of emergency cash on hand. Before the year is up, assess your savings account. If you don't have enough money for at least three months' worth of bills, let it be your wake-up call to start boosting your cash reserves.

The more money you put into a traditional IRA or 401(k), the more you save on your 2020 tax bill. If you haven't yet maxed out your account for the year and have money to spare, it pays to sneak some more in before 2020 wraps up. If you have a 401(k), request that change quickly -- your payroll department may need time to implement it.

If you itemize on your taxes, the more money you donate to registered charities, the more of a tax break you get. Furthermore, even if you don't itemize, under the CARES Act, you can claim up to a $300 deduction this year for charitable donations, so if you can swing it, give generously this month.

If you've already racked up some debt in the course of the holidays, the sooner you pay off your credit cards, the less stressed you'll be in 2021. See what you owe on your different accounts and try cutting back on expenses to begin whittling those balances down.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

If you have a flexible spending account, you may only have until Dec. 31 to use up your balance (though some plans offer a grace period until mid-March or allow for a carryover of some funds). If that's the case, figure out how to spend that money so you don't forfeit it. This year, you can claim nonprescription over-the-counter medications (normally, these are non FSA-eligible), so if you have funds to deplete, stock up on pain relievers and allergy pills. Or, try renewing prescriptions early, getting a new pair of eyeglasses, or pushing up medical tests and appointments.

Mortgage rates are extremely competitive right now, and refinancing your mortgage could shrink your monthly payment so you're less burdened in 2020. You're especially likely to snag a great rate if your credit score is strong.

The information contained on your credit reports will dictate what your credit score looks like, so it's important to make sure your reports don't contain errors. Right now, you're entitled to a free copy of your credit report every week from all three major reporting bureaus -- Experian, Equifax, and TransUnion -- so request yours in the coming weeks and make sure they're accurate.

Maybe you're hoping to build a stronger emergency fund in 2021. Maybe you want to knock out your credit card debt, or pay off your car. No matter your specific objectives, it helps to put your goals in writing and post that list somewhere you can see it. It'll serve as motivation to keep pushing.

While you may be eager to see 2020 come to an end, it still pays to use the next few weeks wisely. Make the above moves, and you'll be better positioned to start 2021 on a financially healthier note.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.