---
title: Start Planning for the Future in 2021 - Birchwood
description: Planning for your financially stable future starts with tackling these simple, yet essential steps.
image: https://blog.birchwoodfp.com/hubfs/Birchwood%20image.jpg
---
[](https://www.birchwoodfp.com/)
Phone: [952-885-9088](tel:19528859088)[](https://cta-redirect.hubspot.com/cta/redirect/3811900/47770b11-5936-41e0-b9cf-9b391581cd7a)
Phone: [952-885-9088](tel:19528859088)
[](https://cta-redirect.hubspot.com/cta/redirect/3811900/47770b11-5936-41e0-b9cf-9b391581cd7a)
# Financial Insights Blog
- Share
- [**](https://www.facebook.com/sharer/sharer.php?u=https://blog.birchwoodfp.com/financial-stability-planning-for-future)
- [**](https://twitter.com/intent/tweet?url=https://blog.birchwoodfp.com/financial-stability-planning-for-future)
- [**](https://plus.google.com/share?url=https://blog.birchwoodfp.com/financial-stability-planning-for-future)
- [**](https://www.linkedin.com/shareArticle?url=https://blog.birchwoodfp.com/financial-stability-planning-for-future)
- [**](https://pinterest.com/pin/create/button/?url=https://blog.birchwoodfp.com/financial-stability-planning-for-future&media=https://f.hubspotusercontent00.net/hubfs/3811900/Birchwood%20image.jpg)
- [**](mailto:?body=https://blog.birchwoodfp.com/financial-stability-planning-for-future)
# 7 Tips for Financial Stability and Planning for the Future in 2021
[Damian Winther, CFP® CSRIC®](https://blog.birchwoodfp.com/author/damian-winther-cfp)
Mar 3, 2021 8:47:00 AM
Each year comes bearing new challenges to address, obstacles to overcome, and opportunities to seize. Understanding your financial plan puts you in a better position to navigate whatever the future has in store for you in 2021 and beyond.
Your financial goals, retirement plans, savings balances, and budget may feel overwhelming, but they don’t need to be. These are crucial pieces of setting yourself up for a financially stable future, so you shouldn’t kick the can down the road.
Challenge yourself to take a new look at your financial situation and let’s get your plans back on target in 2021. Take a look at the 7 Tips for Resetting Your Goals and Retirement Plans outlined below:
[[Read more: 8 Tips For Holding Yourself Accountable to Your Long-Term Financial Plan]](https://blog.birchwoodfp.com/8-tips-long-term-financial-plan)
## 1) Create a Budget
Assemble your 2020 spending and credit card history in order to get a sense of where your money went last year. You may be shocked to discover that you spent far more than you thought on discretionary items such as takeout, clothing, online shopping, etc. Ask yourself if your spending properly reflects your priorities and values. By starting early, you have the ability to set maximum thresholds you wish to allocate funds towards discretionary purchases this year. Budgeting is about creating goals – challenge yourself to make goals and stick to them in 2021!
## 2) Give Yourself an Allowance
Rather than spending the entirety of your checking and savings account balances each month, consider giving yourself a monthly allowance. An allowance empowers you to proactively allocate your resources and stick to your budget. Capping your monthly spending can help you live within your means today, and encourages you to save and invest for future goals.
## 3) Adjust Workplace Retirement Plan Contributions
At a minimum, consider contributing the full employer matching contribution to your workplace retirement plan. If you aren’t sure what percentage your employer matches, you should ask as soon as possible. An employer match will contribute the same amount of funding as you, which means this is free money that shouldn't be left on the table. If your cash flow allows for it, consider max funding your workplace retirement plans. The 401k/403b contribution limit in 2021 is $19,500 (plus an additional $6,500 for those over age 50). If you happen to be covered by a different retirement plan (i.e. Simple IRA or SEP IRA), the contribution limits differ.
[[Read more: 6 Financial Tips for An Early Retirement]](https://blog.birchwoodfp.com/early-retirement)
## 4) Invest in a Roth IRA
Roth IRAs serve as great retirement plans, especially for young investors. With a Roth IRA, you contribute after-tax money that grows tax-free. As long as you take your distributions more than 5-years after you established the account AND after age 59½, everything (including the growth portion) is eligible for tax-free withdrawal. In order to contribute, your Adjusted Gross Income needs to be less than $125,000 (single) or $198,000 (married filing joint). Check with your financial advisor or tax professional to determine whether or not you are eligible to make a contribution. You have until April 15th to make a contribution for the previous tax year.
## 5) Invest in a Brokerage Account
Funding a non-qualified account allows you to set aside money in a tax-efficient way, creating growth potential and access to liquidity for short, intermediate, and long-term goals. Diversification does not solely come in the form of asset allocation, but also comes from how investors allocate their funds between different types of accounts. Having access to taxable, tax-free, and tax-deferred investment accounts comprise an essential long-term planning consideration for all investors.
## 6) Contribute to a 529 College Savings Plan
If you have children or grandchildren, consider making contributions into 529 college savings plans. Distributions can be taken tax-free as long as the money is used for qualified higher education expenses. Young beneficiaries will reap the rewards of compound growth inside their 529 plan, so the earlier you start these accounts, the better.
[[Read more: Teaching Financial Stability to Your Kids](https://blog.birchwoodfp.com/financial-stability)[]](https://blog.birchwoodfp.com/early-retirement)
## 7) Fund Your Health Savings AccouNt
If you have coverage under a high-deductible health savings plan, consider making contributions to your Health Savings Account (HSA). An HSA gives you the ability to cover sky-high medical costs by making pre-tax contributions that will lower your tax liability today. Withdrawals from an HSA are tax-free as long as you use the funds to pay for qualified medical expenses.
At Birchwood Financial Partners, we work with our clients to help them feel empowered and knowledgeable about the financial decisions they make each and every day and how those decisions affect their financial stability and future financial planning.
[](https://cta-redirect.hubspot.com/cta/redirect/3811900/6d1d8826-45f2-4ff7-8d1f-a468fb95b89b)
Topics: [Investment Management](https://blog.birchwoodfp.com/topic/investment-management), [Cash Flow and Budgeting](https://blog.birchwoodfp.com/topic/cash-flow-and-budgeting)
*Investment Advisory services offered through Birchwood Financial Partners, Inc. an SEC Registered Investment Advisor.*
*All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Opinions expressed herein are solely those of Birchwood Financial Partners, Inc., and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions. We are not affiliated with or endorsed by the Social Security Administration or any government agency. The inclusion of any link is not an endorsement of any products or services by Birchwood Financial Partners. All links have been provided only as a convenience.*
### Search Our Blog
### Posts by Tag
- [Investment Management (50)](https://blog.birchwoodfp.com/tag/investment-management)
- [Retirement (50)](https://blog.birchwoodfp.com/tag/retirement)
- [Suddenly Single (39)](https://blog.birchwoodfp.com/tag/suddenly-single)
- [Cash Flow and Budgeting (36)](https://blog.birchwoodfp.com/tag/cash-flow-and-budgeting)
- [Estate & Legacy Planning (35)](https://blog.birchwoodfp.com/tag/estate-legacy-planning)
- [Market Insight (35)](https://blog.birchwoodfp.com/tag/market-insight)
- [Bridget Handke (29)](https://blog.birchwoodfp.com/tag/bridget-handke)
- [Dana Brewer (25)](https://blog.birchwoodfp.com/tag/dana-brewer)
- [Taxes (25)](https://blog.birchwoodfp.com/tag/taxes)
- [Damian Winther (20)](https://blog.birchwoodfp.com/tag/damian-winther)
- [Rachel Infante (18)](https://blog.birchwoodfp.com/tag/rachel-infante)
- [Socially Responsible Investing (SRI) (17)](https://blog.birchwoodfp.com/tag/socially-responsible-investing-sri)
- [Steve Dixon (14)](https://blog.birchwoodfp.com/tag/steve-dixon)
- [Charitable Giving (13)](https://blog.birchwoodfp.com/tag/charitable-giving)
- [Kimmie Andrews (12)](https://blog.birchwoodfp.com/tag/kimmie-andrews)
- [Education Planning (11)](https://blog.birchwoodfp.com/tag/education-planning)
- [Kay Kramer (5)](https://blog.birchwoodfp.com/tag/kay-kramer)
- [Cybersecurity (3)](https://blog.birchwoodfp.com/tag/cybersecurity)
- [Brayden Kelly (1)](https://blog.birchwoodfp.com/tag/brayden-kelly)
- [Growing Wealth (1)](https://blog.birchwoodfp.com/tag/growing-wealth)
- [Kayla Berceau (1)](https://blog.birchwoodfp.com/tag/kayla-berceau)
[See all](https://blog.birchwoodfp.com/financial-stability-planning-for-future#)
[](https://www.birchwoodfp.com/)
[Home](https://www.birchwoodfp.com)
[WHO WE ARE](https://www.birchwoodfp.com/about)
[WHO WE SERVE](https://www.birchwoodfp.com/who-we-serve)
[WHAT WE PROVIDE](https://www.birchwoodfp.com/solutions)
[DOWNLOADABLE GUIDES](https://info.birchwoodfp.com/resources)
[blog](https://blog.birchwoodfp.com)
[Contact Us ](https://www.birchwoodfp.com/contact-us)
[Form CRS](https://info.birchwoodfp.com/form-crs)
[Forms ADV](https://info.birchwoodfp.com/adv)
[PRIVACY POLICY](https://info.birchwoodfp.com/privacy-policy)
[5601 Green Valley Dr., Ste 600](https://maps.app.goo.gl/EbBNRPP4sFfkeYZd8)
[Bloomington, MN 55437](https://maps.app.goo.gl/EbBNRPP4sFfkeYZd8)
Phone: [952-885-9088](tel:19528859088)
Email: [info@birchwoodfp.com](mailto:info@birchwoodfp.com)
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Birchwood Financial Partners, Inc. and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Birchwood Financial Partners, Inc., an SEC Registered Investment Advisor. Birchwood Financial Partners, Inc. is not affiliated with or endorsed by the Social Security Administration or any government agency, and is not engaged in the practice of law. The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the States of AZ, CA, FL, IA, IL, MN, NC, NY, TX, WI or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.
Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph. The inclusion of any link is not an endorsement of any products or services by Birchwood Financial Partners, Inc. All links have been provided only as a convenience.
© 2026 Birchwood Financial Partners. All Rights Reserved.
[Disclaimer ](https://www.birchwoodfp.com/disclaimer)[Legal, privacy, copyright and trademark information](https://www.birchwoodfp.com/legal-privacy-copyright-and-trademark-information)
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Damian Winther, CFP® CSRIC®",
"url" : "https://blog.birchwoodfp.com/author/damian-winther-cfp"
},
"dateModified" : "2024-01-09T18:04:09.803Z",
"datePublished" : "2021-03-03T14:47:00.000Z",
"headline" : "Start Planning for the Future in 2021 - Birchwood",
"image" : [ "https://blog.birchwoodfp.com/hubfs/Birchwood%20image.jpg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.birchwoodfp.com/financial-stability-planning-for-future",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.birchwoodfp.com/hubfs/new%20logo%201%20b.jpg"
},
"name" : "Birchwood Financial Partners"
}
}
```