How Should I Spend My $1,200 Stimulus Check? | OkCarz

Close up of a US Treasury stimulus check with a calculator displaying 1200

Smart Ways to Use Your Stimulus Money

Beginning this week, most Americans are now starting to receive a $1,200 stimulus check plus $500 for every dependent child to help curb the impact of the Coronavirus situation and stimulate the economy. For many families who have lost jobs or have reduced hours, the decision on how to spend the stimulus check is easy. Food, rent, utilities, medications, and any other essentials would come first. However, if you are still working and your bills aren’t impacted, the decision can feel a bit harder. Here are a few smart ways you should consider when using your stimulus money.

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Invest in Yourself

The best way you can spend that extra cash is to invest in yourself. This can include catching up on bills, putting the cash into savings, starting or building your emergency fund, or even putting some of the money aside for future bills like your rent for next month. After all, it’s important to cover your living expenses and give yourself a safety net in case an emergency like this were to happen again.

Pay Towards Loans

Many lenders are offering relief to those affected by freezing payments and even interest accrual. However, every lender is different, and you may still be seeing your interest build. If you have a loan that charges interest, like student loans or car loans, you can put some of your extra cash into paying your loans. Doing this will save you money in the long run as you won’t have to pay as much money in interest. Make sure you are comfortable financially and caught up on bills before doing so.

Splurge Strategically

Man working on his laptop

We don’t want to give the impression that you shouldn’t splurge at all. While those that have no longer have income should put the cash on necessities, it’s okay to spend some of the money on something you want as long as you can afford it. This will help you feel sane and get a sense of normalcy back.

How should you do it? We recommend determining a certain amount to spend on luxuries while applying the rest strategically. For example, you may consider using $200 for splurging while using the remaining $1,000 for savings and debts. In addition, think of where you want that splurge money to go. Consider putting it towards your favorite establishments, like getting delivery from your favorite restaurant, buying gift cards for your favorite store, etc. This will help your favorite establishments stay in businesses as most are struggling to stay afloat.

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How are you planning on using your stimulus money? Let us know in the comments! For more financial tips like this follow the OkCarz blog.

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