The third round of stimulus checks are being dispersed to help those impacted by the pandemic. This influx of extra money can greatly help those who need it most. If you’re unsure how you want to use your payment, here are 10 ways to use the money wisely.
Pay Down Debt
Being able to pay off or reduce a large portion of past due bills is always a great relief. If you’re fortunate to be caught up, but still owe money to credit cards or loans, then it’s a good idea to put the stimulus check toward erasing any additional debts.
Kick-Start or Add To Your Emergency Fund
Experts advise stashing away three to six months of monthly expenses in an emergency fund. This protects you against life’s unexpected events, such as a job loss or major home or auto repair. It’s always a good time to save extra money.
Contribute To Retirement Savings
The good news is your stimulus check won’t be taxed, which enhances the benefit of adding it to your 401(k) or even Roth IRA. It’s always good to prepare for retirement, no matter how far off that date may be.
Pay More Toward Your Mortgage Principal
Paying more toward your mortgage principal means you’ll ultimately pay less in interest over the life of the loan. This is always a good thing for your personal finances.
Contribute To College Funds
If you have children, you can invest in their college savings plan. College costs seem to always be climbing quickly, so it’s best to try and put enough away for kids’ future education.
Paint Your Home’s Interior
A recent study showed that 57% of homeowners surveyed said they plan to put the stimulus check toward home improvements. Refreshing the interior paint can make a big impact and make your space feel brand new.
Enhance Your Home’s Curb Appeal
Well-done landscaping enhancements can increase your home’s value by up to 15%. Plus, they don’t have to cost a ton, especially if you’re willing to do some of the work yourself. Improving your lawn and planting new shrubs and flowers can quickly add eye-catching curb appeal.
Invest In Your Career
Is there a professional certificate or online training program you’ve been eyeing that could help advance your career? If yes, then it may be a good idea to put your stimulus money toward your own self-improvement.
Plan A Special Date Night With Your Significant Other
Take a portion of the stimulus money and treat you and your significant other to a special date night. Whether that means ordering a favorite meal in from a local restaurant, or feeling comfortable enough to book a hotel stay—reward yourselves with the time together.
Donate To A Local Food Bank
The global pandemic has increased the number of individuals and families relying on local food banks and food assistance programs for basic nutritional needs. Now would be a good time to donate some of your stimulus check to support area food banks that continue to give back to the community.
Call a Member Specialist today at 800-422-5852 to find out how we can help you reach your financial goals.