As you know, the government is issuing stimulus checks in order to help balance out the hardships that many people are feeling right now. Many Americans have already received their check or will be receiving it soon.
If you are receiving one, it's a good idea to have a plan for the best way for you to use the money. That’s why we wanted to share...
4 Things To Do With Your Stimulus Check:
- If your job is stable, use the money to push you closer to achieving the goal that you are working on. We follow and recommend Dave Ramsey’s baby steps so if you are following that plan, you would use this money toward which ever step you are on. Meaning if you are on baby step 2, then the money would go towards your debt snowball.
- If you have lost your job or it looks like you might be losing your job, put this money in your savings account in case you need it. Whenever you have uncertainty in your job, it’s a good idea to “pause” the baby steps and save money. If you need it, it’s there and if you don’t end up needing it and life goes back to “normal” you can press “play” and put that money you had saved towards the baby steps again.
- Be generous. If you are through the baby steps, your job is stable, and you are wondering what you should do with this stimulus money – it is never a bad idea to be extra generous. Give a bigger tip, support a small business, pay for that haircut you were scheduled for but couldn’t get, give extra to your church… the list goes on and on because unfortunately, there are a lot of people in need right now. So, if you are in the position to give, being generous is always the most fun you will have with money.
- Save for retirement and/or kid’s college. If you are on baby steps 4 or 5 but haven’t been able to save as much as you would like, consider using this money to save more into those investment accounts.
The way they have structured the stimulus package is an amount per person and also per child. If you are through the baby steps and do not need the money to cover your basic needs because of a job loss, you may consider putting the child's money in an UTMA investment account or college fund for them. As Dave Ramsey talks about often, one of the best parts of followng the baby steps plan is the impact that is can have on your family. It can change your family tree forever.
If you have questions that are specific to your situation, we would be happy to help. You can meet our team here:
Whitaker-Myers Wealth Managers, LTD is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.