How to Spend Your Next Stimulus Check
How to spend your next stimulus check. Another round of stimulus checks is just around the corner, and it’s time to start thinking about what you’re going to do with that money. Not sure? Here’s what we propose!
Pay your essential bills
If you’re falling behind on important bills, like housing and utilities, then put the stimulus payment towards that. You should also see if there’s any way to lower those payments. Rules on eviction moratoriums vary from state to state and from county to county. Do your research and ask for help.
Pay off credit card debt
If you have credit card interest rates of 10% or more , then you should pay off your credit card debt ASAP. Cant do that? Get in touch with us, and well help get you on a debt management plan with lower credit card interest rates and lower monthly payments. However, each situation is unique. State rules, disposable income and savings all play a part.
Put it in a high-yield savings account
If you’re current on your bills but don’t have much savings to fall back on in case of emergency, then you should put your stimulus payment in a high-yield savings account, which can make you over 15x more money than the national average. We suggest having 3-6 months of emergency savings in an FDIC insured account. Everything else should be working for you earning more than inflation.
Invest
If you’ve paid off all your credit card debt and have sufficient savings (to last you 3-6 months), then consider investing your stimulus check. If you’re new to investing, you should do a lot of research before making even a small investment. Remember investing comes with risk. Investments are not FDIC insured and may lose value including the loss of invested principal.
However you spend it, spend wisely.
