How To Use Your Stimulus Money Smartly

As the pandemic rages on Americans will get another, albeit smaller, stimulus check. What should you do with this sudden $600 payment?

If you are struggling to pay the bills because of job loss in 2020 a $600 stimulus check is much needed, though probably falls quite short.

But if you have been steadily or semi-steadily employed through the pandemic this check may not be as desperately needed. So what should you do with it? Well, whatever you want! But there are a few smart things you can do with it to help your finances.

Pay Outstanding Bills

It’s not a fun use of $600 but it is a smart one. If you have been behind on bills you should absolutely use the stimulus money to try and get back on track. The sooner you can right the ship the less damage will be done to your long-term credit. Pick the most important thing first like housing, electricity and heat.

If you don’t have any outstanding bills use it to pay off debts like credit card debt. Paying a chunk towards a credit card can save you a lot of interest down the road.

Save It!

There is no better time to start an emergency fund! Use your $600 to create an emergency fund for the future. You can continue to add to it as 2021 progresses but this is a great starting point.

You can also just add it to your existing savings. If 2020 taught us anything it’s that having some money in the bank can be the difference between staying afloat or struggling to survive. The more you can save the more of a cushion you will have if something like COVID ever happens again.

Spend It (Go Ahead!)

If you want to spend your stimulus then go ahead! After all that’s how the economy is stimulated. But try and be mindful about where you spend it. Try and spend it at small businesses that may have been affected by the pandemic. Use it at local shops or use it for home repairs from local handymen. Imagine if everyone used their stimulus at local businesses?! That could mean the difference in staying opening or closing forever.

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