As part of the recent COVID-19 relief package, millions of Americans are receiving stimulus checks for $1400. While the package also includes relief in the form of tax credits for families with children, extended federal unemployment benefits, and much more, many people have considered the $1400 stimulus checks to be one of the biggest selling points for getting this relief package passed and signed by the president. While not everyone has experienced financial hardships as a result of COVID-19, qualified individuals are receiving $1400, no questions asked. However, one question should be asked — what are you going to do with that money?
If you’re still deciding exactly how you want to spend or save your stimulus money, here are a few suggestions:
- Get caught up on your payments. Many Americans have had trouble paying their bills on time over the last year due to a loss of income, stemming from certain businesses closing their doors or laying off employees. Before you decide to spend this new money, take a look at where you are with your bills; if you need to get caught up with late payments, this is a great time to clear your debt. However, if you want to plan ahead, set your stimulus money aside and save it for future bills.
- Pay off any remaining debt. If you have a credit card bill, car payment, medical bill, or student loan, your stimulus check can go a long way in paying down what you owe, even if you can’t entirely clear your debt. Make sure to make payments on the debt with the highest interest first so it doesn’t continue to accumulate.
- Build an emergency savings fund. The last year has demonstrated to us all the importance of having an emergency fund in case the worst happens. For many Americans, the worst did indeed happen, even if they didn’t fall ill to the virus. If you are in a position to do so, set aside your $1400 in a savings account so it can earn interest and grow over time. You can choose from our Vantage Savings accounts, which are a great choice for any savings level. If you’re interested in investing your $1400 for your retirement, ask us about our investment retirement accounts (IRAs).
- Show your generosity and share the love. If you’re in a comfortable financial position to reach out and help out during this crisis, there are countless nonprofits to choose from; the last year has added quite a bit of strain to charitable organizations and they can always use the assistance.