With stimulus payments going out to millions of Americans this week, ClearOne Advantage has compiled a list of options to best use your payment. You are eligible to receive the second stimulus check if you are a U.S. Resident making under $75,000.
There are many options for how to spend a stimulus check, and you don’t need to choose just one. Think about your financial situation and consider which option or options would best help your household during COVID.
What should you do with your stimulus check?
Use your stimulus to pay off bills
During a crisis such as COVID, you should make your personal finances a priority. If you are in debt or are in danger of accumulating debt, you should prioritize using your stimulus check to pay any pending bills.
Even if the stimulus can’t cover all of your debt, you may be able to pay off one or two bills now. Lowering the principal portion of your debt can save you money in the long run because you’ll pay less in interest.
If you have not yet accumulated debt, use your stimulus check to keep yourself out of that situation by pre-paying off some of your bills. Use the check to lighten your financial load this month, maybe even allowing you to put some money into savings.
Save your stimulus check
COVID is a time of uncertainty, making it the perfect opportunity to put some money in that emergency fund. Even if you still have a job, you never know when something could happen, leaving you with lower or no income. It may give you peace of mind to know that you have an emergency fund should you need it.
If forced to quarantine due to COVID, it would be a particularly beneficial idea to have some money in savings. Isolation can happen suddenly, without time for you to prepare. Even if your case is not severe enough to require a hospital stay, you may need the savings for your 10-day isolation, as recommended by the CDC.
During quarantine, you may become reliant on delivery services, especially if you were unable to stock up on supplies beforehand. You may need to get groceries and prescriptions delivered to your home. Any additional supplies you need to help make you more comfortable while you battle the Coronavirus will need to be delivered, and maybe for an extra fee since you will probably want it immediately. Having extra money saved for increased delivery costs would be a great use of the stimulus-based emergency fund.
Stimulate the economy
If you feel you have the means to do so, use the stimulus check for its original purpose: to stimulate the economy. That doesn’t mean going out and buying that flat screen TV you’ve had your eye on, though.
Take the stimulus check and use it to buy groceries, clothes, and other essentials. Use it on things you would normally spend money on, not luxuries. Better yet, use your stimulus check to support local businesses, especially those who are struggling during COVID.
If you’re really looking to splurge, use it on something that won’t use up all of your stimulus check. You could also consider funding your investment accounts such as a contribution to a Roth IRA.
However you choose to spend your stimulus check, do it wisely. If you are struggling with your financial situation and feeling burdened with credit card debt, it may be best to use the stimulus check to help get yourself out of it.
If your stimulus check is not enough to solve your credit card debt, ClearOne Advantage can help. Contact one of our Certified Debt Specialists at 866-481-1597 to discuss your best debt relief options and get a free savings estimate today.
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