How To Spend Your Stimulus Check
The IRS has delivered stimulus payments to millions of Americans over the past couple of weeks. Whether you’ve already received your check or you’re still waiting on one, you may have wondered how you’re going to spend your money.
Due to the spike in unemployment numbers over the past month, it is pretty safe to say that COVID-19 has put a financial burden on Americans across the country. While there still could be a second round of stimulus checks being delivered, there is no guarantee.
Below are tips provided by Midwest Heritage to help you thoughtfully and responsibly spend your first stimulus check:
Make Sure You Have Health Care:
- Health care coverage will ensure that you have access to health care services such as physician visits, prescription medicine, etc. including COVID-19 testing.
Take Care of Short-Term Expenses:
- If COVID-19 has caused you a furlough or a layoff, it is important to consider using your stimulus check towards covering your short-term expenses (rent, mortgage, water/electric bills, grocery bills, minimum credit card payments, etc.). Make sure you are spending your money on critical necessities such as food and shelter. Remember to NEVER borrow money to pay your bills.
- After these expenses are covered, you then want to work on replenishing your emergency fund. This fund should include 3-6 months of your income.
Increase Your Savings:
- If your short-term expenses have been covered and you’ve built up a reliable emergency fund, consider using your stimulus money to increase your savings. Put your money into a savings account or a money-market fund where you can compound interest on your stimulus check and it is still readily accessible. Click here to find out more about our account options and open up an account today!
Use Stimulus Check Toward Other Financial Goals:
- If you feel financially secure, you can put your stimulus funds towards your existing financial goals (retirement, children’s education, etc.). Depending on your own timeline, now is a great time to continue to invest and work towards those goals as you normally would. If you would like to find out more information on budgeting and investing, visit click here.