5 Things To Do With Your COVID-19 Stimulus Check
The COVID-19 stimulus checks are starting to arrive in bank accounts and mailboxes. If you’re getting one, you may be wondering what to do with this money. First, I will say that the government is issuing this money to families to help with basic living essentials. We don’t know how long our nation will be sheltering in place, nor do we know how long it will take our country and businesses to recover.
If you are still able to work and you haven’t lost your income, you have more options as to what you do with the money. If you have been laid off or your income has been reduced, your options may be limited. Consider your financial situation and the needs of your family when deciding what to do with you COVID-19 stimulus check.
Below are five things to do with your COVID-19 Stimulus Check:
Meet basic needs
Use the money to supplement your reduced income. Since we don’t know how long this pandemic and its effects will last, I would try to stretch the money out for 3-6 months. It may not be a lot, but it can make things a little more bearable.
If you don’t need to supplement your income, add to your emergency fund (a little light humor – wait, this is an emergency!). Continue to build your savings, as we are seeing, life is so uncertain.
Pay down debt
With your basic needs being met, and you’re putting money in your savings, the next thing you can do is tackle your debt. If you’re able, pay a credit card off, reduce your balance to 30% or less, of your credit limit. If you have any loans, see if you can pay a little extra toward the principle. Whatever you can do to reduce your overall debt helpful – every little bit helps.
Start investing in your financial future
There are several online platforms that will allow you to get started with very little money. This is an opportunity to get your feet wet, and learn. These platforms are good for beginning investors, and a way to build your confidence and comfort level. Taking these small investing steps are steps to securing your financial future.
Invest in yourself
This may be a good time to learn a new skill; take an online course that may increase your marketability, position you to get a better job, or allow you to start a side hustle of your own. Choose something that will enrich your life, and will add value.
The COVID-19 stimulus checks may not be a lot, but it is a small windfall for many. You should be strategic in planning how you will use the money. Allow this money to lighten your financial burden, and start you on a trajectory to a better financial life. Make it count.
Kimberly Robertson is a financial educator who believes in allowing your values to guide you. Having raised her children as a single mom, she understands the challenges and struggles of not having enough. Kimberly has been passionate about financial literacy and personal finance since she was a teenager. That passion drives her to empower and educate others about money. As a US Army veteran, she accepts this as her mission.