How to Use Your Stimulus Check
Some people are fortunate enough to have secure jobs even in the COVID-19-related economic downturn. You might not need the money the stimulus checks offer to families across the country. Others may be relying on these stimulus checks to help pay for essentials. While nearly everyone could use the extra money, some ways to use your stimulus checks are smarter than others.
We want to help our credit union members make wise decisions about how to spend their stimulus checks. These are a few smart ways you can use yours.
Pay Your Most Important Bills First
Some families are hurting right now. If your family is among them, prioritize your bills to determine which are the most important, and pay those bills first. Even if what is most important is the ability to feed your family. Many families were living paycheck to paycheck when social isolation caused massive disruptions to their lives and livelihoods. Families that did not have financial safety nets still have mouths to feed, and that is their most crucial bill at the moment. Otherwise, prioritize your bills according to need, while realizing that deferments and forbearances will eventually need to be repaid.
Build Up Your Savings
There’s nothing wrong with putting your money aside for a rainy day. Today is a rainy day for millions of Americans. If you’re able to hold your head above water, don’t waste this opportunity to pad your savings for the future or even to supplement your current savings plan. You might even consider putting your stimulus check in a money market account where you can earn higher yields (if you feel like you may need access to the funds) or a share certificate (if you are certain you won’t need access to the funds).
Pay Down (or Off) High-Interest Debt
If you have high-interest debt lurking around, this is an excellent time to consider managing your debt. You want to pay that off first since it is your highest monthly interest expense. This includes high-interest credit cards, short-term loans, and more.
Consult Your Financial Advisor
If your financial situation is currently stable and you don’t have high-interest debt to pay off, consider consulting with your financial advisor about investing your stimulus check. Put the money to work with you. Most financial advisors view all stocks as “on sale” at the moment because they are being sold well under their value due to panic selling in the stock market. It’s a great time to buy, and working with a financial advisor can help you make informed buying choices.
Financial Access Federal Credit Union is Here to Help!
There is a lot of fear and uncertainty today when it comes to financial stability and how to do what’s right, financially speaking, for yourself, your family, and your financial future.
We’re happy to answer your burning questions and help you with money market accounts, savings accounts, and more, and especially at this time. Simply give us a call at 941-748-7704 today to learn more about the services we have to offer you during these uncertain times.
Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.
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