On March 17th of 2021, a third stimulus check was sent out to taxpayers to help them boost the economy with increased spending. Many people see this as a chance to buy the designer bag they’ve always wanted or the latest video game console. But there’s a much better way to use your stimulus money to your advantage!
Here are the 3 best ways to use your stimulus check so that you can take care of your financial needs.
1. Start Investing
If you use your stimulus money to invest, you can start making more money off of the money you’re receiving. By doing so, you can multiply the amount you receive so that you have a greater financial cushion in the future.
There are several simple apps that help make investing a lot more convenient. Apps like Robinhood or Webull assist you in purchasing and trading stocks so that you can make a profit off of your investments.
2. Pay Off Loans
Approximately 80% of Americans are currently in debt. Credit card payments, student loans, personal loans- it all piles up quickly and creates a hole that’s hard to escape. If you’ve accrued a lot of debt, you can certainly use your stimulus check to your advantage.
If you have a large debt, you could use your $1,400 to pay off the interest that you’ve accumulated over time. Or you could also start paying smaller amounts that you owe to gain some momentum on paying your debts back.
3. Cover Recurring Costs
What recurring expenses are the most stressful on your wallet? Is it rent, car insurance, gas? One way you can spend your stimulus money is using it to cover the costs that come up consistently.
Getting ahead on the payments you know will be coming up can give you a great financial cushion. By using your stimulus to cover your main costs, you can put more money into savings or help a loved one settle some of their payments.
