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7 Ways To Spend Your Stimulus Check To Improve Your Finances

7 ways to spend your stimulus check to improve your finances

With everything that is going on in the world today, our financial position has become somewhat precarious. While not everyone was affected to the same extent, the pandemic has affected each and every one of us in some way.

Financially, one of the bright lights is the stimulus check that a large part of us has received. This review is designed to help strengthen the economy in these uncertain times. Since the light at the end of the tunnel seems very far away, using your Stimulus Check to improve your finances can only help reduce stress.

There are many different ways you can go about this. So I wanted to offer you many different options in the hopes that at least one of two options would be consistent with your unique financial situation.

Build your emergency fund

One of the best ways to use your Stimulus Check to improve your finances is to add to your emergency fund. That’s when you have one. If you don’t, It is absolutely time you started one. Trust me, you will be grateful if an emergency comes your way.

You don’t have to start big, but anything is better than nothing. Even if you only deposit or ½ of your stimulus check, you have already helped create a financial buffer for yourself.

I know when my family The emergency fund has expenses of at least six monthsWe feel a lot safer than when it falls deeper. The knowledge that you are prepared for an emergency should one arise is absolutely incredible.

What helped me build my emergency fund faster was a High yield savings account. While what they consider “high yield” today is no longer exactly what it used to be, they still offer much higher interest rates than a traditional bank.

There are a few options, but one of my favorites is this CIT Savings Builder. All you need is $ 100 to open an account and there are no fees. If you are able to deposit at least $ 100 each month, you will get the highest interest rate they have. But even if you currently cannot, the interest rates are among the highest on the market today. Plus, it’s easy to transfer money back and forth with no fees.

If you haven’t already set up an emergency fund, this is the first place I would suggest to start.

Give your budget a boost

6 Ways To Spend Your Stimulus Check On Improving Your Finances - Give Your Budget A Boost

Another great place to spend your stimulus check is within your budget. After all, stimulus reviews are all about getting the economy going and your budget is where you plan your spending.

Many people are currently unemployed and are sure to see their available resources gradually diminishing. If this is the case for you, it may be time to top up your budget with your Stimulus Check. You can even consider spreading this money across multiple monthly budgets to create a little safety net in case your income goes down.

Personally, I started budgeting using a spreadsheet I created in 2002 (which thankfully has evolved!). If you’re new to budgeting or just need a little help, there are plenty Budgeting tools out there. Some of these are free and some aren’t, but spending a small portion of your stimulus check on a subscription might not be a bad idea.

7 Ways To Spend Your Stimulus Check To Improve Your Finances - PocketSmith

One app that can be of great help is Pocketsmiththat serves as a personal assistant for your finances. What i like about Pocketsmith is that it shows you the future. As you set your budget, the app shows how today’s spending will affect your finances in months and even years. And TThe best thing about PocketSmith, however, is that you don’t have to pay a dime for the basic version. You have to manually import your transactions and only get six months for future projections, but it’s worth it. You can upgrade to the $ 9.95 monthly plan when you’re ready.

Subscribe to a financial management tool

Financial management tools (think budgeting tools) are extremely useful for improving your finances. They can effectively help you identify your weaknesses and create a plan of action that will help you reach your financial goals faster.

If you don’t already have one in your tool belt, you can spend part of your stimulus money on one. Because at the end of the day, you can save that much money later with a tool that helps you with the budget. Almost all financial advisors agree on this – and everyone who has used one.

Most financial management tools have different plan options set at different prices so you can tailor your experience to suit your needs. There are many different options that you can use to manage your finances. However, two of my favorites are both very interactive and offer several options that you can use to maximize managing your finances.

MoneyPatrol

7 Ways To Spend Your Stimulus Check To Improve Your Finances - MoneyPatrolMoneyPatrol is one of my favorite tools that I recommend when a friend is looking for help with their finances. First of all, they’ll help you keep track of your spending so you can see every category you’re spending money in. This can help you identify any weaknesses that you can then address first. Next, they will help you create a budget within their platform so that you can progress step by step.

While they aren’t free, the fee they charge is minimal. There is a 15-day free trial period to make sure you like the program first. This is of great help if you are new to using financial instruments.

Personal capital

7 Ways To Spend Your Stimulus Check To Improve Your Finances - Personal CapitalPersonal capital has been around for a long time. Personally, I’ve been using them for years since I switched from the Mint platform. In addition to offering a wealthy card (one of my favorite tools), they also offer portfolio analysis, fee analyzer, and a budgeting tool.

Personal capital Links to all of your bank and investment accounts to aggregate the numbers and figures appropriately. This really helps you get a fuller picture of everything that’s going on with your finances, what I really love about them. What’s even better is that the app is free!

Invest it

6 Ways To Spend Your Stimulus Check To Improve Your Finances - Invest It

If you already have an emergency fund and are on a comfortable budget, there is another great option. You could instead use some or all of the stimulus check to invest in the stock market. In time, you could turn your check into even more cash!

Ever since my husband and I started investing in the stock market, this has been one of our favorite pastimes to improve our finances. The average annual return on investment on the stock market is 8%, which can really help improve your finances.

This does not mean that you are guaranteed an 8% return on your money every year. This is just the average over time. So some years will be better than others, but there is no time like the present to get started.

Here are some platforms that I really love that you can easily get started investing in the stock market.

Robin Hood

7 Ways To Spend Your Stimulus Check On Improving Your Finances - Robinhood

Robin Hood is a platform for millennials with little to no investment experience. Not only are they easy to get started, but they also make it easy to navigate through trades. You can even do all of the functions right from the app on your phone, so you can manage your investments on the go!

Robin Hood There are no fees to set up an account and it is commission-free. Plus, you’ll get a free share worth between $ 2.50 and $ 200 just to sign up!

Advertiser Disclosure – This advertisement contains information and materials provided by Robinhood Financial LLC and its affiliates (“Robinhood”) and MoneyUnder30, a third party not affiliated with Robinhood. All investments involve risk and past performance of any security or financial product is not a guarantee of future results or returns. Securities offered through Robinhood Financial LLC and Robinhood Securities LLC, which are members of FINRA and SIPC. MoneyUnder30 is not a member of FINRA or SIPC. “

You invest from J.P. Morgan

7 Ways To Spend Your Stimulus Check To Improve Your Finances - Investing by J.P. Morgan You invest is another investment platform that I really like. This platform is operated by J.P. Morgan Chase operates and also has no setup or commission fees. The minimum investment to get started is only $ 1 which is fantastic!

You Invest tries to make it easier for new investors to get their feet wet with their You Invest Trade accounts. Then, when you get to the point where you feel more confident about your investments, have more money in the market and are ready to seek expert advice, you can upgrade to your You Invest Portfolio accounts.

Disclosure – INVESTMENT PRODUCTS: NO DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSS OF VALUE

Pay a tax advisor

If you’re like many people who haven’t filed their taxes, now is the time to do so! The 2019 application submission deadline is almost up, and filing makes it a lot easier to get to the next round of incentives (if that comes into play).

If you haven’t filed your taxes yet and want to make sure you’re getting the best possible return, this may be the case advantageous to pay a tax advisor. Tax counselors are experts in tax codes and can find any tax write-offs you may be eligible for. I don’t know about you, but I’m a huge fan of getting as much tax write-offs as possible because it means less tax to pay. In fact, for me this usually means that I get a greater return. I love!

If you are not sure whether a tax advisor is worthwhile for you and your particular situation, you can always choose the tax software route instead. Control software like TurboTax Generally costs a lot less than a tax advisor but can still help you find depreciation to lower your taxes!

Hire a financial advisor

6 Ways To Spend Your Stimulus Check To Improve Your Finances - Hire A Financial Advisor

If you don’t already have a financial advisor, this can be a good use of your stimulus check. Financial advisors are an indispensable tool in any financial instrument, definitely if your financial situation has changed recently.

A financial advisor will go through all aspects of your finances with you to determine the best way for you to achieve your goal. And if you are not sure what your future financial goal is, they can help you find this out too.

Just make sure anyone you choose to be a financial advisor is a trustee. A trustee is an advisor who only charges fees and does not pay sales commissions. Trustees therefore have your best interests at heart.

If you do decide to hire a financial advisor to do your stimulus check, one of the best places to start is with paladin Registration. This is an online marketplace specifically designed to help you find a financial advisor to work for you. Even better, they specialize in mostly independent fiduciary financial advisers rather than advisors to branded companies.

Spend it

Last but not least, spending your stimulus check can be a great way to improve your finances. I realize that doesn’t sound intuitive, but it really isn’t. After all, the government sent out the economic reviews to help boost the economy during this pandemic. So if you’re already set in all of the other categories, this is probably the category for you.

Here’s just one example of how spending your stimulus check can improve your finances in the long run: If you invest in home improvement, it can help add value to your home. This will make you more cash if you sell your home or if you decide to apply for a home equity loan with a company like Figure. The more equity you have built up in your home, the more options you will have to access that money later.

Summary

Once you qualify for a stimulus check, there are so many things you can do with it. But the best you can do is use it to improve your finances. There are many different ways to do this, and it will be different for each of us.

Whichever route you choose, maximize the potential of your stimulus check and think before you spend any money.

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¹ Figure’s APRs start at 3.49% for the best qualified applicants and are higher for other applicants. For example, for a borrower with a CLTV of 45% and a credit score of 800, a five-year Figure Home Equity Line with an initial drawing amount of $ 50,000 would have a fixed annual percentage (APR) of 3.49% and a 4.99% origination fee . Your total loan amount would be $ 52,495. Depending on the state your property is in and your credit profile, you are responsible for an origination fee of up to 4.99% of your initial real estate. Your actual interest rate will depend on many factors, such as: B. Your loan, the combined ratio of loan to value, the duration of the loan and the occupancy status. The advertised rate of 3.49% includes a combined discount of 0.75% for choosing one quorum Membership (0.50%) and registration with Autopay (0.25%). APRs start at 4.24% for customers who do not choose to auto-pay or apply for membership in the quorum. Property insurance is required as a condition of the loan and flood insurance may be required if your property is in a flood area.




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