Your Finances Took a Hit From the Pandemic. Here’s What You Do Now.

As far as this tax return is concerned, it never hurts to organize all tax data in the last few months of the calendar year. It is a record of your recent past and a window into your long-term future (e.g. through a note about retirement savings). The process can also serve as a reminder that there is often at least one more thing you can do in the present to help yourself while giving less money to various government agencies.

Prepare now and you can claim as early as possible in 2022 and get a quick refund that you get. A note of caution: Donna Trainor, an Atlanta financial planner and accountant who has done extensive pro bono work with people at risk of losing their homes, fears those recipients of the new monthly tax credits won’t realize it is themselves a kind of advance payment. If you get it now, it means you may not get the same tax refund that you normally get. Hence, you need to remove such expectations from your budget for 2022.

Now to the searching questions about your feelings.

Even for those used to financial uncertainty, the pandemic may have exacerbated catastrophic thinking that can stifle your ability to plan and prioritize.

In Hollywood, in a class of workers who resemble theater people like our money mentor Stephen, fear often grips even the most successful, said Leighann Miko, whose financial planning firm often works with people who go from gig to gig.

“The fear was that recovery would take much longer,” she said. “People thought they had to take other employment paths.” What they really wanted to avoid was what she called “Plan Z,” the code for previous jobs in various industries that they never wanted to take again.

Ms. Miko sees some kind of psychological scars all around her, even on people who make $ 600,000 a year. Cry them a river, but they know well and well that even without a pandemic, a year with only $ 30,000 in profit could easily be around the corner. In order to help those who cannot imagine doing anything other than the dream job they worked so hard for, she plans and plans – and tries to achieve them too.

“To minimize the disaster, it is important to ensure that any safety net is made up of multiple layers,” she said. “Because at some point they will fall through the first and then the second.”

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