6 Things To Do With Your Stimulus Check

Over the last year, life has changed drastically for us all. Things we once thought would never change have. Tragically, lives have been lost. Individuals have lost their livelihoods due to the effects of the pandemic and other life circumstances.

As we continue to move forward, we can begin to see a little light at the end of the tunnel. The aftermath of all we’ve encountered has left us emotionally and physically exhausted, though. Families have had to struggle to make ends meet. We’ve had to make difficult decisions. Fortunately, many have started receiving the latest stimulus payments from the government. The question that a lot of us are dealing with is: what do we do with it?

After all the things we’ve learned over the last year, here are 6 THINGS TO DO WITH YOUR STIMULUS CHECK

Pay Off Debts

Debt can be sneaky. We start small, thinking, “well I can afford this; the payment is only $100 a month.” But then we find something else that’s only $30 a month. We continue adding debt in small amounts and, before we realize it, we are using most of our monthly income to pay down debt. This limits our ability to save for emergencies and other financial goals that we may have as individuals or families.

This stimulus check may be the perfect opportunity to start paying off some of those debts. Make a list of the debts you owe. Write down how much you owe along with the monthly payments. Pick one or two (or more, if you’re able) to pay off. If the balances are larger than your check, choose an amount that you think is smart and put that amount towards the debt. This can bring down your monthly payments and give you a little extra cushion going forward.

Start An Emergency Fund

There have been many studies completed regarding the amount of savings families have set aside. According to a survey completed by Bankrate a few years ago, more than 20% of households in the US put no money towards savings each month. Nearly half of those surveyed save 5% or less.

If the last year has taught us anything, it’s the importance of being prepared. We know that emergencies will arise. Someone will lose a job or have their hours cut back. A medical emergency happens. The water heater goes out at home. These occurrences can cripple us if we’re not prepared. That’s where an emergency fund comes in handy. This gives a little peace knowing we don’t have to take money from other areas of our budget to pay for those emergencies.

How much of an emergency fund do we need? Dave Ramsey recommends starting off with at least $1000. Other financial experts recommend that we work our way up to an emergency fund of at least 3 to 6 months expenses. The stimulus check may be the perfect opportunity to start building that emergency fund.

Invest Some Of It

We do need an emergency savings fund, along with other savings goals. But, what are we doing about saving long term? Have you thought about retiring and traveling the world? Or what about moving to your dream location? Using your stimulus money to start investing may be the first step in reaching those long term goals.

You can start with as little or as much as you want. There are many options for investment accounts today. One great place to start is with Stash. They offer the ability to automate your investments. You can do this by setting up an automatic deposit from your checking account each month. Or you can set it up to round up your checking account purchases to the nearest dollars. The difference would be automatically invested. For example: You spend $5.50 at Starbucks. This would be rounded up to the nearest dollar amount, which would be $6.00. That additional $0.50 would be added to your investment account. If you choose to invest, please do so wisely. Read as much as you can. Research. Ask for financial advice from someone you trust. And then invest.

Stock Up On Necessities

Do you remember how things were at the beginning of the pandemic? People started panicking because there was a fear of shut downs. Grocery store shelves were left bare for days and weeks. This may be a great time to stock up on necessities. I’m not saying to go out and hoard all the toilet paper or anything like that. But I am saying that it would be wise to stock up on some things that are non-perishable and that you know you will use. We don’t want anything to go to waste.

We keep an eye on the local grocery store sales because they are cyclical. And we will stock up on the things that we know we use when they go on sale once or twice a month. These are things like toilet paper, cleaning items, soft drinks, canned goods, etc. If you’re wanting to do this, I recommend downloading Ibotta or Shopkicks. These are apps that give you cashback to purchase items you would normally purchase. It’s similar to a coupon, but it gives you cash back. You can get this cash back through Paypal, direct deposit, or gift cards to your favorite stores.

Help Someone In Need

Our family has been very fortunate over the last year. And I know that many of you could probably say the same. Sure, it’s been frustrating and uncertain. But there have been many who’ve been fortunate enough to be able to continue working. But we also know so many who have not been so fortunate. There are countless stories of how good has come out of this pandemic. People have been looking out for friends and neighbors. If you’ve been fortunate enough to continue getting a paycheck over the last year, maybe this stimulus money is the perfect opportunity to help someone in need. Is there a widow in your neighborhood that could use a pick me up? What about a single mom who may be struggling? Whatever the case may be, pay it forward to help someone in need.

Plan A Trip

Okay, so all of the things I’ve mentioned up until this point have been practical. Some may view this last piece of advice as impractical (and maybe even a little crazy). But, hear me out on this. Many people have been stuck at home for a year. Sure, we’ve been able to get out here and there. But life has been so incredibly different from anything we’ve ever experienced.

We’re drained emotionally, physically, mentally and spiritually. We need a break. We need something to take our mind off of it all. Why not plan a trip? I know what some of you are saying. “But, I’m not comfortable traveling just yet.” And that’s perfectly okay. This could be a time when you start planning for a big trip or a weekend getaway for a few months down the road. Dreaming of a beach somewhere with the ocean waves crashing around you? Plan that trip. Put down that deposit. Have you ever dreamed of going to Disney World? Now could be the perfect time to start planning that trip. If you are interested in traveling to any Disney location, I recommend heading over to Walt Express Travel by Lauren. This could be a great opportunity to move forward on the path to normalcy.

No doubt the last year has been rough. We could argue about whether or not the stimulus money is enough or whether more should be done. But, I think we should all agree that we can put the stimulus money to work for us and help us to move forward to healing and restoring a little peace and sanity in our lives. So, what are your plans for the latest stimulus check?