With the IRS sending out stimulus checks as part of the “Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help those impacted by the coronavirus pandemic” many adults are receiving the $1200 or more (depending on the size of your family) and are wondering what is the best thing to do with this money. Here are a few ways to spend yours!
Take Care of Necessities
If you’ve been laid off or furloughed because of the COVID-19 pandemic – this stimulus money could not have happened at a better time for you. Take care of necessities such as food, electricity, rent/mortgage, and transportation (if needed). Cover all the basics to get you back to a comfortable level of living – first.
With the number of employees who have been laid off, the reality check of lack of savings has been brought to the forefront. If you have never made saving a priority, now is the perfect time to do so. Utilizing your stimulus check to start a savings account can help provide that financial cushion that you will need in the future. Once you create your savings, use it for emergencies only.
Apply it to Debt
If you have debt and you’re still currently working – pay down your debt with your stimulus check. Because you are still bringing in income per usual, you now have a good chunk of change to throw at any debt you need to get rid of. Less debt, less monthly payments, more money in your pocket in the long run.
If you are still working, don’t have debt, and have personal or household projects that you haven’t been able to get done due to lack of cash flow – use your stimulus money for this! Whether it be vehicle-related, household-related, or something personal you have been putting off.
Support Local Businesses
Support local businesses! You can buy gift cards, make purchases, or send donations. Giving back is always a rewarding way to spend. You can also use this money for charities, fundraisers, etc. See our blog below for more info on how to support a local business!
Create a Budget
Finally, before you start delegating your check to different areas, you will want to develop a budget. This will help you account for everything ahead of time and prevent you from overspending!
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