As part of the America Rescue Plan, stimulus checks aim to provide financial relief to US citizens during the COVID-19 crisis. And while it’s not a long-term solution, it can definitely help temporarily ease many low-income households as the pandemic rages on.
Now with the possibility of a fourth stimulus check being deliberated, you might be wondering how to make the most of it. So to help you out, below are seven great ideas to consider trying out:
Cover Your Basic Needs
Use the fourth stimulus check to cover some of your essential expenses. These include your house’s utility bills, your car or life insurance, and your mortgage, to name a few. Alternatively, you can use the money to tune up your vehicle or do some home improvement. Or better yet, go to the nearest discount grocery to stock up your pantry with non-perishable food. That way, you can stretch your dollar during mealtimes.
Reduce Your Debt
Depending on your current financial situation, you can also use the fourth stimulus check to chip away at your debt. For example, you can use financial aid to significantly reduce your mortgage principal. Doing this will reduce the interest you need to pay overtime, allowing you to save money in the long run. Or you can use the check to return some of the money you pulled out through line credits. That way, you can keep this loan instrument active for future use.
Build an Emergency Fund
If you have neither debt nor immediate basic expenses to deal with, you can use the stimulus check to build a decent savings stash instead. Take note that you’ll need at least three to six months’ worth of salary to establish a viable emergency fund. Aside from the stimulus check, you’ll need to set aside a portion of your monthly income if you want to enjoy a good financial parachute during emergencies.
Invest in Your Future
But if you’re financially stable even with the COVID pandemic rampaging, best invest the money from the stimulus check. You can do this in at least three ways. First, by buying assets that will help you earn more money. Second, by investing in yourself and enrolling in courses that will give you new professional skills. And third, by creating a decent employee engagement plan to keep your team happy (provided you own a business).
Support a Good Cause
In case you’re financially secure enough that you don’t need to follow the suggestions above, then better use the stimulus check to help others. That means donating to charities who are in dire need of financial support. Or you can buy PPE for schools, hospitals, and other establishments that are essential during the current crisis. You can even support your local, regional, and national theater companies, chipping in your money to sponsor streamed performances.
Give It Away
Alternatively, you can just give away your stimulus check if you don’t need it. Once you cash it out, you can do this in many ways. For example, if you have a close friend, family, or neighbor who’s having a hard time with finances, do them a favor by handing them the money. Or you can use the money to buy them a week’s worth of groceries. It’s up to you.
Enjoy It Intelligently
Lastly, you can always use the stimulus check to splurge on yourself. Now while doing this, try doing it while still helping others out. That means buying local products or services, eating at your favorite restaurant, gifting your hairstylist or beautician, and many more. By doing these things, you’ll not only enjoy the stimulus check; you’ll also be giving back to your community.
The Bottom Line
Since it only provides a one-time financial assistance, you need to be strategic when it comes to using your fourth stimulus check (in case it gets approved). By following the suggestions above, you can better make sure that you make the most of it.Published in