The third round of stimulus checks have arrived in the bank accounts of many Americans, providing much-needed relief after more than a year spent in quarantine. For many, the stimulus check is a lifeline providing funds to pay overdue bills, rent, mortgage payments or medical expenses.
With this stimulus payment, many households with children received the largest amount of aid yet, easing the financial burden many families are still facing.
If you are fortunate to have stimulus money left over after covering outstanding expenses, we have a few suggestions to help you make the most of the remaining money.
If you have a large credit card balance or a credit card with an especially high interest rate, paying off this debt can help you gain peace of mind and open up financial opportunities for your future.
Paying down credit cards is an effective way to improve your credit score, which can help you qualify for loans or make significant purchases later.
Taking care of your mind and body is especially important during stressful times. If you’re able, you could use a portion of your stimulus check to purchase a yearly subscription to a wellness tool such as a mindfulness app or yoga class.
There are many options to choose from, and mindfulness practices such as yoga or guided meditation can help you find calm and balance in your day.
If you are looking for a job, there are many online certification courses available to help you develop a specialized skill set.
Learn to code, become a data expert, or study up to get licensed to sell insurance. There are many affordable options available to help you get to where you want to be in your career.
A smart way to invest in your future self is to buy stocks. Whether you learn the stock market yourself or work with an advisor, starting to invest now could provide financial benefits later in life.
If you haven’t had the financial resources to access a mental health professional, the funds available in your stimulus check could assist with accessing a therapist through a virtual appointment.
If you are fortunate enough to already have access to a mental health professional, consider donating to a local organization that provides mental health resources to members of your community.
It’s never too early to start saving for retirement. Consider putting some money towards a 401k or IRA to build retirement savings; since your stimulus check won’t be taxed, this means that you will have double the advantage by putting your money in an account that grows tax-free.
An annuity offers tax-free, guaranteed income in retirement and can help you prepare for a strong financial future.
If you have a homeowners insurance policy, an auto loan, or a life insurance policy with monthly premiums, you could consider setting some money aside to cover these costs for the next six to 12 months. Doing so will give you a cushion in your monthly budget, which can provide peace of mind.
Having life insurance ensures that your loved ones would not face financial hardship if you were no longer around. With policies for around $20/month, you could secure affordable coverage (since premiums are based on your age and health when you apply) if you were to allocate some of your stimulus money towards your life insurance premium.
However you choose to spend your stimulus check, it’s important to consider your financial future and the goals you want to accomplish. If you are interested in saving for retirement or protecting your loved ones with life insurance, our advisors are just a click away.
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