All across the United States, individuals are anxiously awaiting the arrival of their deposit as a part of the Federal Government’s Stimulus Package. While the amount you are receiving may vary slightly, the truly defining factor about the use of this money is not the amount but the current status of your financial well-being due to Covid-19. We’ve put together some suggestions for how to use that money based on your current situation, and even have some ideas on how to invest in a new home!
Are you struggling to pay your rent or bills due to loss of income?
- This money will help you take care of those essentials. If you are an individual who made less than $75,000 in 2019, you’ll receive $1,200 to help you cover your lost income. If you are still unsure that you will be able to make ends meet, reach out to your service providers, such as IPL or Citizen’s Energy, and see what kind of payment programs they are running to help their customers during this time.
Feeling good about your job and finances, but unsure of the future? You have a few options!
- Put it towards high interest debt you might have like a credit card. This will save you money in interest payments in the long run, and help free up some available credit for you down the road if you need it!
- Open a savings account for emergencies, or put your money in one you already have open. Make sure it is easy to access if you need it, no penalties or fees for taking funds out, just in case your situation changes.
Prepared for anything when it comes to your financial state? We have ideas for you as well!
- Start a home improvement project you’ve put on the back burner! Some great options would be to build a deck in your backyard, update your bathroom, put in new shelving in your kitchen, or even install a new ceiling fan or light fixture. These projects can increase the value of your home, giving you more buying power when you are looking to move.- Put the money towards a down payment on a new home. Mortgage rates are at an all time low, and if you have been looking for a new home or were thinking about starting the process, this stimulus check is a great option for your down payment. And new construction takes a lot of unknowns of a resale home out of the equation, making it easier on your wallet in the long run.
No matter your situation, this stimulus check is a great opportunity to practice smart spending. We hope these tips are helpful and that when your deposit arrives you are prepared to use it, whether that is to pay your bills or put a down payment on your next home!