Before deciding how best to use your stimulus check, consider working with a CPA for expert advice.
Pay Off Some Debt
According to the Federal Reserve Bank, America has surpassed $1 trillion in credit card debt. That’s the highest level of debt America has reached since the Great Depression.
Putting all or some portion of your stimulus check towards paying off some of your high-interest credit card debt is a responsible move. It will give you much more peace of mind regarding your current financial situation.
Put Money Into a Savings Account
It is incredibly important right now to have money saved up. If you have a savings account, give it a nice little boost with your stimulus check. If you don’t have a savings account, use this money to start one and begin adding to it, little by little, over time. You’ll be surprised how much the money adds up.
Many people like to have a savings account from which they can’t immediately withdraw money. This is a good idea for many people who find it difficult to avoid spending unless absolutely necessary, but if this is an emergency savings account, you want it to be liquid – meaning you can withdraw money immediately if needed.
Many people put off starting a savings account because they don’t have much money to add to one in the first place. It’s not very assuring or inspiring to have $50 dollars put away. However, if you can take $500 out of your stimulus check to begin a savings account, you’ll likely feel an immediate incentive to help it grow.
You should only consider investing your stimulus check if you already have plenty of money saved up.
Yes, the stock market has seen a sharp decline recently due to our uncertain economic times, but downturns historically come with upswings.
If You Spend It, Do So Locally
Businesses are struggling right now. The damage of coronavirus goes beyond human health – it’s taken a massive toll on our economy as well.
With everyone locked down in their homes with nothing to do, it’s tempting to spend money online. Instead, spend your money locally and responsibly. Local restaurants and shops will be grateful and it will help them stay open, but be sure to only spend within your budget.
It’s also important to remember the bare essentials. We all love our recreational purchases, but we need to keep the important things in mind.
If You Can, Help Those In Need
We all need to work together during this crisis. Keep in mind that there’s nothing wrong with taking care of your own needs first; there’s no way you can adequately help anyone else if your basic needs aren’t meant. But if it’s possible, use this money to help those in your life who need it most. If you have family or friends who are struggling to make rent or afford groceries while you have more than enough financial assets yourself, help give them a leg-up.