Did you receive a stimulus check as part of the CARES Act? Are you in line to receive another check in the near future (should there be another stimulus package)?
Despite the fact that the pandemic has turned the world upside down, it’s nice to receive free money. This is even more so the case if you use it in a way that benefits you financially.
If you’re struggling to decide how to use your stimulus check, here are some ideas to consider:
1. Save It
It may not be your idea of fun, but saving some or all of your stimulus check may be the best decision. This gives you access to the money in the future, should you need it, such as in the event of a job loss or medical setback.
Note: there’s more than one way to save your stimulus check. You could put it in your savings account, retirement account, or investment account.
2. Pay Your Monthly Bills
One of the main points of the stimulus package was to give people enough money to pay their bills during an unexpected and difficult time.
Just the same as saving money, paying your monthly bills may not be the first thing you want to do with the check. However, it’s the responsible approach if you’re struggling to stay current.
3. Pay Down Debt
Do you have debt that you’ve been dying to get rid of? From student loans to medical bills to credit card balances, there’s likely to be a debt (or several) that you want to knock out of your life.
Use some or all of your stimulus check to make progress. You’ll be glad that you did in the future.
4. Continue Your Education
Maybe you want to go back to school so you can pursue another profession after the pandemic is gone. Or maybe you want to take an online course that helps you secure a better job.
A good education prepares you for the job market, so don’t hesitate to spend money on this.
5. Help Someone in Need
If you’re financially stable, it may be time to help someone in need. For example, if an elderly parent is struggling as the result of the pandemic, maybe you step in to help them out. Or if a friend is having a rough time, you could be the one to make things better.
While these are among the best ways to use your stimulus check, there are an endless number of options available to you.
If you still have your first stimulus check and/or receive another, strongly consider how you’ll use it. The right approach can go a long way in improving your finances.