Best Ways to Spend Your Stimulus Check

January 14, 2021

Although many U.S. consumers have received the second round of stimulus checks, they may not have specific plans for the funds. Because everyone’s financial situation is different, here are some ideas to consider when deciding how to spend your stimulus check.
Pay bills first
The first way to use your stimulus money is to pay any bills you may owe. You can use the funds for unplanned expenses or medical care you may have delayed based on reduced income.
Add to your savings
If you are able to cover all your expenses, the next best use of the stimulus funds would be to add it to your savings, and in particular, an emergency fund.
Having an emergency fund can help you pay for unexpected costs, such as car repairs or medical bills. Keeping these funds separate from other savings and your spending money is important. Open a high-yield savings account with no fees and no balance requirements to deposit these funds. 
Invest in your future
If you can pay all your bills and your emergency fund has at least six months’ worth of your expenses deposited, you could then invest in yourself. 
This might include paying off your debt, earning a certification that could position you for a promotion or new job, or saving for upcoming expenses, like a vacation. 
Help charities you champion 
Finally, this is a great time to help others, especially if your finances are stable. Donating to a reputable charity, such as a food bank, and spending money at local businesses is a wonderful way to support your community and those in need.
However you plan to use your stimulus check, keep your financial goals in mind. These extra funds can be used wisely to keep you on track to reach your goals in 2021. 

Tags: Money Management, Savings, Tips and Tricks