Another pandemic stimulus check from the government may be on the way, and it can’t come soon enough. With all the expenses that have built up over the duration of the pandemic, there are many things to spend the check on. No matter how much money it’s worth for you or whether you qualify for a retroactive first stimulus check, it’s important to use the check to its full potential. Take some of these tips for how to spend your stimulus check wisely into account after the money reaches your household.
Make a List of the Necessities
The check may not be worth enough to pay for everything that has been piling up over the months but it can still take a chunk out of any debt, rent, or groceries. Consider your budget and assess which expenses you must pay immediately. These expenses may have extreme consequences if they’re not paid in full which puts them at the top of your list. Your family also needs to eat, so be sure to budget money for food. Remember, this is a temporary addition of money—don’t use this budget or list on the next month or you may stretch your wallet too far.
Save Some Money
If you manage to pay off the necessities and still have some of the stimulus money left over, keep the remainder safe in case of an emergency. Store the money in a safe location, like a savings account, and continue living the same lifestyle you normally do with your average budget. Once things return to a sense of normalcy, you may be able to use some of these funds for something fun.
Pay Attention To Your Loans
When you’re in debt, lenders may often harass you for money—especially if they know you’re getting a stimulus check. Research the details of your loans and the protections that your state may grant you. You may need to use some stimulus money on loan repayments if you have a private lender.
If you or your child have student loans, you may not need to make payments on them using your stimulus check depending on the type of lender you have. Federal loans are currently in administrative forbearance until the end of January, but this can change at any time.
As a rule of thumb, it’s important to stay up to date on any news regarding loans of any kind. If you learn that you don’t need to make a loan payment using the government money, it may affect your considerations for how to spend your stimulus check wisely as you can then put that money somewhere else.
