8 Best Things to do With Your Stimulus Check

Months late Congress was able to pass the second stimulus package just in time for Christmas. If you’re like me, you have a million priorities on your plate and are trying to balance spending money on bills and spending on some much needed self care. Well I have a few suggestions, that include more than just the bills. Keep reading to learn more.

Before we continue, let’s review a few facts about the latest stimulus.

Photo by Alexander Mils on Unsplash

• If your single and made less than $75000 you should receive $600.
• If your head of household (earn < $112,000) or file jointly (earn < $150,000) you should receive $1200.
• You will receive $600 for each dependant child.
• If you earn more than the amounts listed, you may still be eligible for some money. You can also file this form with your 2020 tax return for a possible Recovery Rebate Credit.
• Your payment should be sent by January 15th. Click HERE to check on your payment status.
• There is also funding for: businesses, vaccines, climate measures, unemployment benefits, rental protections, medical bill disclosures, food security, and broadband infrastructure.

Hopefully, if you are eligible your check is en route! If so, here’s a list of where you should place those well-earned funds.

1. Take care of your basic needs first. Food, rent, utilities. These are the basics. Make sure rent and utilities are up to date and utilize some of these funds to help with your job search if you are one of the thousands still unemployed.
2. Fund your emergency savings. If you don’t have a basic savings account set up yet, utilize the stimulus to do this now. Although vaccine news gives us lots of hope for less Covid-related expenses in 2021, everyday emergencies are still out there. Think natural disasters (thanks climate change), car breakdowns, home repairs, medical emergencies. Make sure you have at least one-month’s worth of living expenses squirreled away.
3. Get up to date on deferred bills. Ok, so this is the less fun one- but also super important! Getting behind on credit card or car payment bills can decimate your credit score. Although most companies have happily given payment deferrals, that will be coming to an end soon (if it hasn't already) and that bill will be due! Use this money to get up to date and set your minimum payments on auto draft if you need to. Remember, payment history makes up 35% of your credit score. One 30/60/90 day late payment can stay on your report for 5–7 years, impacting the way you can leverage money and build wealth in the future. Make paying your bills on time a priority- your future self will thank you.
4. Pay down high interest debt. Got balances on those store credit cards charging you over 20%? Time to pay those down, because that interest rolls over and just keeps adding up. Example: on a $600 credit card bill with an interest rate of 20%, you can expect to pay $480 in interest if you stick to those minimum payments. Plus, it’s a great return on your investment!
5. Support local businesses. There are a few things I don’t mind paying top dollar for: quality food, designer handbags, sustainable items, and local business. Now more than ever local business owners- particularly minority owned business owners need your help. So if you’ve got the previous 4 suggestions taken care of, set some funds aside to pick up something at your favorite local bookstore, coffee shop, restaurant, or gift shop.
6. Treat yourself. Ok, I said it. It’s OK to treat yourself! 2020 was a doozy and we all need a little time to decompress. Book a massage, take a day trip, or just take a day off work to relax. Spend time outside, exercise, experience something new, get some sleep, eat well- these are the actions that are scientifically proven to boost happiness, so I suggest starting there. Whatever you chose- savor it.
7. Start investing. Got your emergency fund and high interest debt paid? Sounds like it’s the perfect time to start your investment journey. Whether it’s increasing your 401k contributions (make sure you take advantage of any employer matching), starting a Roth IRA, a HSA or your individual investment account — investing early can take years off your working life! For example, $600 today becomes $2,796 in 20 years if you do nothing but put it into an index fund.
8. Give to those who need more. Giving is one of my core values, and I hope it’s one of yours too — the world needs more of it. If you’re in a good place in life, consider donating to your favorite cause. Don’t have one? Now is a perfect time to do some light research and find something that speaks to your heart. These unprecedented times call for unprecedented generocity.

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