Expecting a tax refund? File early

In many households, 2020 has seen changes in our financial lives.

The COVID-19 pandemic changed what we spend on and what we save for, such as more groceries due to working and schooling from home or less on transportation and parking. For others, the pandemic has had an immediate, and in some cases lasting, impact on income.

Every year at this time, experts recommend a financial checkup to gauge where people met, exceeded or fell short of financial goals. It’s an opportunity to reset, expand and tweak goals based on where we are and where we want to be financially.

This year, a financial checkup can not only help you budget for 2021, but also provides opportunities to take advantage of some consumer protections and market trends to make your money stay safer and go further.

Here are some financial recommendations to consider when looking at your 2020 finances and 2021 goals. the three main United States credit bureaus (Equifax, Experian and TransUnion) are offering consumers free credit reports weekly though https://annualcreditreport.com, the same website used to get free annual credit reports. Take advantage of this offer and monitor your credit closely to identify potential fraud on your accounts or identity theft.

You can also view real time updates about current COVID-19 scams by visiting https://www.ftc.gov/coronavirus/scams-consumer-advice.

This is also an opportunity to check on any loan deferments or forbearances you have are reported correctly, as they should not affect your credit.

Complete your credit checkup by making sure you have the best options in your wallet to fit your needs. If you use your credit card for common expenses like groceries (especially if you are spending more on them) or for monthly recurring bills, a cash rewards card can help you earn money from your spending.

If you are expecting a tax refund in 2021, consider filing as early as possible. Consider the best use of having the extra money on-hand, whether boosting your savings, adding to your retirement funds or taking advantage of historically low mortgage rates and increase your down payment on a new home.

Just remember that with an uncertain environment expected for the next several months, it’s important to have a solid savings built to withstand unexpected changes to income or costs, such as increases in utility costs through the winter months.

Don’t stop saving for retirement