Stimulus Check: Here are my Top 5 Tips!
As you all know, it has been a weird last couple of weeks. We have been in complete disarray over what's happening in the world today. A lot of things we could not prepare for and in some cases they brought hardship to us all.
I know you're probably wondering what I have to say about it and I will share with you my insight on things at some point but in this entry I am simply going to focus in on the Stimulus Check. My personal goal is to help people become debt free and I will share all the tips I can when I have an opportunity.
Why is the Stimulus Check important? Well, this check has been given to us all to help build the economy up again. So it can function like normal. I don't know if you have looked around lately but many vendors who have retail stores are not getting as much revenue as they once were. Yes, a lot of people shop online but people still do like to tangibly purchase items and try on clothes etc. So yes these vendors are very much a necessity as well.
In an article published by Forbes:
"Single taxpayers who earned less than $75,000 and filed a 2018 or 2019 federal income tax return can expect a $1,200 stimulus check. Married couples filing jointly who earned less than $150,000 can expect $2,400 and each dependent child age 16 or younger can receive $500."
So, we are already aware that most people would received a minimum amount of $1200.00 dollars. So the question is should the check be spent? If so, how do you spend it? Will your purchase is help the economy? Should you splurge?
I have made out a list below to help identify the best ways to spend your money in the next coming months. I hope you find this information helpful because taking care of our needs should be our first priority in this time.
How to Spend your check:
Many financial institutions are offering forbearance for residential mortgages. I would suggest contacting your lender for more information. Shelter is important and there are many resources out there to help you if you are in need. Dial 211 if you are located in Pennsylvania for further assistance in your situation.
If you have your check and need to pay rent from the previous month due to hardship, pay that primarily. If you only have enough for half of next months rent, then set it to the side to help you if you are collection unemployment. I know it can be tempting to spend but think about shelter it is one of the most important things to keep as a priority.
Your transportation is also important if you commute to work daily. If you ride a shared Uber or take a bus you still need a monthly budget to be able to get to where you need to go. I remember having to allot at least 40$ for a monthly bus pass when I didn’t have a car. Be smart and prepare in advance people.
If you have a car payment, many financial institutions are offering deferment on loans because of Covid-19. Call your lender to find out the details. Many banks are offering 1-3 months deferments. Inquire about that if needed.
If you can, pay this month's and the following month of your car payment considering all your basic needs are covered. Use your check to your advantage if you are unsure of where you will be financially in the months ahead.
#3 Emergency Saving
Make sure you have an emergency fund. The Emergency fund the money you save for any emergency or crisis you may encounter in the days, months or years to come.
This money can be used for true emergencies that happen to you and your family. For example, your car breaks down that is an emergency because you can not get to work without a car. But if you find that you really want to buy a pair of sneakers and you don’t have the money in your regular account don’t dip into your emergency account for that.
This ER FUND can help if and when you are in financial need in the future. Believe me since we started doing this, we have used our e-fund 3 times for several emergencies that came up. Be smart and save as much as you can!
#4 Pay Debt Off
If you have done the above steps and are sure you are able to, then pay off as much debt as possible. I know the money can easily be used for extra clothes and things like that but what if this is an opportunity for you to get rid of that credit card payment? Take the opportunity if you can and pay that debt off! It will make more room for your monthly budget if you pay it off so just do it already! This money is a gift, use it to your advantage.
If your needs are covered including your savings now may be the time to help someone else. Invest into someone else! Give to someone in need, who has limited resources due to their situation.
I won’t advise on giving it all away but give what you don’t need away. At this time, I know it’s easy to think of our own desires but it is the best to put others before ourselves. Many have lost jobs and may be receiving unemployment checks that won’t cover them as much as their paychecks normally do. Help someone out if you can! Share Share Share!