Another Stimulus Check? What Will You Do with Yours?

So it's settled; another round of stimulus checks are making way to the mailboxes and bank accounts of eligible individuals. Don't know if you're eligible? Find out more by visiting the Economic Impact Payments page on the IRS website. 

Extra Money, How will you spend it?

Depending on your circumstances, this extra check can help in various ways. If you suffered a job loss or a cut in hours, the extra money could help you make ends meet. If you are fortunate to still be doing okay during these trying times, the check could help you in other areas. The key is not to be wasteful. 

Here are some ideas on how to spend your stimulus check for those without an urgent need:

• Emergency Fund 💰- If you do not already have a fully-funded emergency fund, consider putting some or all of your stimulus check into an existing emergency fund. If you do not have one, start one with these funds. 
• Pay Down Debt ➖- Have some bills or debt you need to take care of? This is an excellent opportunity to get caught up or put down more than the minimum payment on existing debt.
• Stock Up 🥫-  Running low on groceries or household items? Use some of your money to refill the refrigerator and cabinets. Combine coupons and in-store savings for the best deals. 
• Pay Insurance Premiums🚗 - Do you typically pay your car insurance monthly? Use this opportunity to pay more in advance. If you have enough to pay for 6 months or a year, do it so that you have one less thing to worry about. You can also pay for home or renters insurance. 

As you can see, there are many ways that you can use this round of stimulus checks to better your situation. What you don't want to do is go out spending your money on just anything. Be thoughtful and considerate of your financial goals and obligations.

How will I spend mine?

To my delight, I was a fortunate recipient of a $600 stimulus check during the second round. While some would argue that it is not enough, I am incredibly grateful to receive this financial assistance. My money is already spent, as I know exactly how I'll be using it. During the year 2020, I accumulated a fair amount of medical expenses. While the $600 will not cover it all, it comes very close. My money will allow me to pay off the current balance of medical expenses. This, for me, is a win. I do not have to dig into my savings and earnings. I can utilize this second stimulus payment in a meaningful way. Woohoo! 👏

Managing your money like a boss means spending wisely, even if the money comes as a windfall.