So you’ve been pretty patient for a few weeks. And one day you decide to go check your mailbox and there it is. The stimulus check you’ve been waiting for! But now what? Should you save it? Spend it? Pay off some debt? Treat yourself?
These are the questions I know many of you are asking. So what should you do with your Covid-19 stimulus money? I would say that depends on a few things. First, you need to ask yourself a few questions:
- Do you have any unpaid debt?
- Have you lost your job or are still at risk to lose your job?
- Has money been tight at all in the last few years?
- Do you have an income that is affected by the economy?
- Are you saving up for anything specific? A car? A house? A trip?
If you answered “yes” to any of those questions, I’d recommend using that check to pay off any debts or saving it for a rainy day. A brand new flat screen TV might seem nice until one day you are unable to pay rent. You never know what can happen.
Just as the pandemic came as a surprise to all, life throws unexpected things our way all the time. The stimulus check isn’t much but can help ends meet should another disaster be thrown your way. I always say, “Plan for the worst, and hope for the best.”
So, if you’re still hanging on to that check wondering what you should do, it might be worth it to try putting it in the bank and using it for something good.
Disclaimer: Each business and/or individual situation is different and unique. This article is intended to provide you with general advice only and not to be construed as legal advice. If you would like a detailed approach to your particular situation, please contact David J. Winterton & Associates for a consultation to discuss your options.