With the most recent round of stimulus checks from the government, we know you may be wondering how best to use your check. There are a variety of things you want to use the check for, but we broke down a list of the best ways for you to use your check:
- Pay your bills – Whether it’s a credit card bill or getting up-to-date on overdue bills, paying those bills can feel incredibly relieving.
- Start an emergency fund – There’s never a wrong time to start building up a stash of three to six months’ worth of living expenses in an emergency fund to help you in, well, a case of an emergency.
- Save for retirement – Since your stimulus check won’t be taxed, you can put it into a Roth IRA, which makes it triple tax-free.
- Tune your car – If you haven’t used your car in a while, whether it’s because you’re not commuting to work or your activities are limited, it might be a good idea to consider taking it to a mechanic to ensure its operating at its best.
- Stock up on groceries – Consider taking your cash to the grocery story to stock up on the essentials. Stretch your dollar at mealtime by going to a discount grocery store or warehouse club.
And here’s what not to do with your paycheck:
- Splurge on something you don’t need – We understand how tempting it is to splurge on fun, frivolous things you don’t need. However, it’s really important, especially now, to have that money in your pocket in case of an emergency?
- Investing if you have no savings – You should only invest your money if you’re absolutely sure you won’t need it later down the road. Before you invest, make sure you have a cushion in your emergency fund that can cover you should you lose your job.
- Spending it all right away – You may be tempted to spend your check all in one fail swoop. Spread out your check to make sure you’re covering all of your bases.
If you need help figuring out how best to spend your check, our staff can connect you with the proper financial resources that will guide you.