(GivenUs.com) – There may be one small light at the end of this pandemic tunnel, and that’s getting some cold, hard cash from Uncle Sam. Are you getting a stimulus check? Having money in the bank is a good feeling, but for many people, those dollars really need to stretch. Here is how you can put your stimulus check to good use.
Make It Grow
People are getting excited about receiving some cash flow into their lives, especially during uncertain times. The impulse to spend can be tempting, but one of the best actions you can take for your financial health is to stick your stimulus check away. A high-yield savings account would be the optimal choice. It allows you to stretch your funds over time as your money builds interest.
Create an Emergency Fund
If you already have enough money to get by and pay your existing bills, then now’s the time to create or build on your emergency fund. A rule of thumb is to have at least 3 to 6 months of income set aside for an emergency such as a layoff or sudden expense — but in these uncertain times, it wouldn’t hurt to add even more to that.
Pay off Past Due Bills
Are bills piling up on your desk? Make your stimulus check go further by paying off past due bills now. They may not all go away, but paying down on the balances can relieve the burden of draining your paycheck or unemployment when that comes.
Shop Smart
If you do plan on using your stimulus check for something other than savings or debt, stretch your funds by shopping smart. Stock up on essentials and household items including soap and personal hygiene products. Make food dollars stretch further by using coupons and buying in bulk.
Defer Payments
If your livelihood depends on this stimulus check, you need to search for ways to get the most out of it. Start by looking for household bills that offer deferments. Many gas and electric companies are offering lowered monthly payments, and some are even holding off on disconnection.
USA Today reports that your mortgage company may be able to set you up with a moratorium, which means you won’t have to pay your mortgage for a brief period of time. Student loan lenders are also offering deferments for borrowers having trouble making their payments, according to Fool.com. This can free up your check for immediate expenses like food and basic needs.
Being savvy about your stimulus check is important now more than ever. Making every dollar stretch will be beneficial to you and your livelihood moving forward. So resist the urge to blow it on non-essential items. Put it to work for you and reap the rewards. We will get through these trying times.
~Here’s to Your Success!
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