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The end of 2020 approaches, and a whole new year is looming.

This is especially important to keep in mind when it comes to finances and personal wealth.

While it might seem like a good idea to leave things until January, in reality getting a jump on your finances ahead of time is the best way forward.

You’ll start fresh with the admin behind you and a profitable future to look forward to.

To help you on your way, Fortune put together a staggering 20 ‘finance laws to live by’.

You’ll find the standard tips in the mix, about putting a little cash away every month and working out an expenditure budget, but we picked the six that you might not have thought of.

Avoid Credit Card Debt

The first rule of personal finance is to avoid credit card debt as much as possible. Credit card borrowing rates are typically ridiculously high, and paying those debts will inevitably decrease your net worth.

Settle as much debt as possible before the new year, and try not to overdo it in December.

Building Credit Is Important

While you need to avoid debt, it’s also a good idea to maintain a decent credit score. The biggest expense over your lifetime will be interest costs on things like car loans, student loans, and mortgage payments. A good credit score can save you thousands on borrowing fees.

If you’re planning on making some big investments next year, it’s a good idea to get your credit score in order first.

Income Is Not The Same As Savings

There is a massive difference between making money (so, what appears in your bank account once a month) and becoming wealthy. Earning a high salary doesn’t make you rich, because what matters is how much you have tucked away in savings, and how much you spend.

You might be living it up in a Ferrari right now, but that isn’t going to pay for your future.

Live Below Your Means, Not Within Your Means

Living within your means sees you going from paycheck to paycheck without ever actually building your wealth. The only way you’re going to get ahead of this is by living below your means and tucking that extra cash away in savings.

This is a great tip for setting up your 2021 budget. A lifestyle overhaul and corresponding budget will prove beneficial in the long run.

Saving Is More Important Than Investing And Investing Is Not The Same As Saving

When investing, you need to be smart about it. At the same time, setting a high savings rate is the best investment decision that you can make because it sets you up with a high level of security later on.

You can’t control interest rates, the timing of recessions, or stock market performance, but you can control your savings.

There are plenty of ways to go it alone, like making a to-do list of the tips above, adding the remaining 14, and trying to follow them to the letter.

But, at the end of the day, handing your finances over to tried and tested professionals also offers great peace of mind.

I’m talking about people like the experts over at Consequence Private Wealth, who have made it their business to partner with you and your family to protect and build your wealth.

There are a lot of things to stress about at the moment.

Your personal wealth doesn’t have to be one of them.

[source:fortune]