After a long period of debates in Congress, a new stimulus package was finally approved. Each adult should soon receive, if they have not already, the promised $600 in their bank account or mail soon. For many people, the extra money will help them meet their regular bills. For others, money is extra. This leaves several options on how you might spend it. Here are some ideas you may want to consider.
Buy New Toys
While $600 is only half the amount of the first stimulus check, it is still enough to buy things you’ve wanted, such as new electronic toys. A check of that size could enable you to buy some new gadgets, including lower-priced laptops, a wide-screen for your TV, a new cellphone, or several lower-priced electronic goods such as a drone or gaming hardware. Of course, it can also buy kitchen gadgets, a piece or two of furniture, and so much more.
Pay Off a Bill
You may also have a small bill that you could pay off with your new stimulus check. It is enough to pay down some of your debt – possibly enabling you to save money on interest. If the money can eliminate at least one bill, it will mean less stress and more money in your pocket. This will enable you to put more money toward paying off your next bill, and so on. Having less debt is a good way to start the new year.
Enhance Your Career
Another way that you might use your stimulus money would be to take a course in self-development, leadership, or in some area that will make you more valuable to your current company or a new one. This will help ensure that you stay employable and add further job security. Or, be more prepared to change jobs or careers.
Save It for Emergencies
If you do not yet have some money set aside for emergencies, you could set aside your check for this. Emergencies will come your way sooner or later. This could be a good way to get an emergency fund started. To be better prepared, you want to have at least six months’ worth of expenditures saved up. Make sure it is easily accessible. Since no one yet knows what will happen in 2021, having some money to draw on when things get rough is a very good idea.
Invest It
Saving money is always a good idea. Letting it build with interest is even better. Investing the money from your stimulus check could be your best use of the money. You could add it to your IRA or 401(k) – if you have one and are not maxed out in your contributions.
Before investing, if you are just getting started, make sure that you do some homework. Check out the fees and find out what type of management will take place with the account – is it up to you, automated, or personally managed by the company?
Contribute to Charity
Charities are having a lot more people than usual depend on their services ever since COVID-19 struck. This has taxed their financial abilities and supplies beyond what they can cover. They could use help in the form of contributions. And, of course, contributions are tax-deductible.
You may be able to find other ways to save money if you review your expenditures and see what you can eliminate. Finding lower-priced options on services such as cable TV, Internet costs, car and health insurance, etc., can also enable you to save money.