4 Ways to Spend your Stimulus Check
Starting last week out lovely (I am being sarcastic) government started sending out checks to millions of Americans. This $2 trillion dollar Stimulus Package was passed a month ago to aid in the economic hardship many will face due to the Coronavirus pandemic.
Although it is not a true fix to the financial hardship many will endure due to loss of employment. These funds can assist us in keeping up with a few of our monthly expenses. Even further it will help us continue to feed our families during this quarantine. Many households expected at minimum $1,200 dollars to be deposited in the bank account that is on file with the IRS from filing a tax return. For those who are unsure if they qualify they can visit the IRS website for more information.
Now that most of us have received stimulus checks the question is what do we do with the extra money? It is really important to be smart about how these funds are used and how to stretch this money for the unforeseen future. The advantage is many stores and restaurants have been ordered to close, which will eliminate some unnecessary spending. This provides a greater chance of this money being put toward a goal or to help keep us afloat.
Here are 4 ways you can put your check to great use:
Pay Fixed Expenses
First things first pay your fixed expenses like rent/mortgage, utilities, car insurance, and cellphone bill. This will ensure keeping a roof over your head and the lights on a little bit longer while we figure out when this pandemic will end. Also, purchase any groceries and essential items needed.
Pay off Debt
If all bills are up to date this money can go towards paying off debt. Focus on high interest credit cards, personal loans and student loans. Although student loans were ordered into forbearance until September 2020, it is good practice to continue chopping down the balance. This should only be considered if you are in a good space financially.
Increase Emergency Fund
Dave Ramsey recommends we have at least 3 to 6 months of household expenses saved for a rainy day. The peace of mind knowing you have money saved can add to your quality of life and help tackle obstacles that might come up. Dave says start with $1,000, read about his 7 Baby Steps here.
Help Someone In Need
It’s the perfect time to help those in need. There are people who are struggling to get the basic necessities such as food and water. If you are not affected financially by this pandemic use this opportunity to give back as much as possible. Count your blessings!