Only you know what is best for you to spend your stimulus check on. Some people have options on what they can do with all or some of the money. Whether you have the ability to set this money aside or need the money to help you get through, just know you have options. Here are five tips about where to allocate this money and maximize these funds.
- Fund an emergency savings account. If you can afford to do so, put some of this money into an emergency fund, whether it’s an existing fund or one you’re starting from scratch. A High Yield Online Savings account gives you the freedom to manage your account completely online while you earn more than 16X the national average on your balance.
- Strategize before spending. Before spending any of the money, formulate a plan, starting with the necessities. This is the first building block in making sure your foundation is strong. You might need the cash for food, supplies or critical bills. Look ahead and think about what expenses you’ll have over the next few months. If you can afford to and if need be, save some of the money for the weeks ahead and the next round of bills.
- Make a new budget. No one knows how long it will take for America to get back to normal, which means you will want to stretch your stimulus check as much as possible. Having a budget is the best way to navigate where your money is going. If you already have a budget, it’s to reevaluate it. The world is different than it was a few months ago.
- Pay high-interest credit-card debt off. Not receiving a paycheck and still having to purchase necessities for an unplanned emergency is bound to make some people use their credit cards to make purchases. If you fall into this group, try to pay the bill as soon as it’s due or as soon as possible so that you don’t rack up debt.
- A balance-transfer credit card may buy you some time. Before taking any offer, make sure you understand the balance transfer fees or other fees that you might incur. Also, check the terms and conditions of this offer to see whether interest on new purchases may accumulate at a different APR than your promotional one.
For many people, these are tough times. But making thoughtful spending choices and assessing your needs and wants can make the dollars you have last longer. That’s especially vital in cases where you don’t have income and/or an emergency fund to use. Of course, we are always here to help you with any of your financial needs whether it be a loan, a savings account or guidance on your financial plan. Don’t hesitate to reach out to us.