For many people, $1,200 can go a long way.
If you’re one of the many Americans who are going to be receiving a stimulus check, it can be very exciting but also anxiety-inducing. Whenever the rare occasion that a lump sum of money (that aren’t paychecks) appear in our bank accounts, we might start thinking irrationally!
If you’re someone who might not have the best money habits, it might be almost too easy to let the money disappear without notice. We’re here to help! Remember that a stimulus check is being given to stimulate the economy, so whichever way you choose to spend it, its purpose is to keep our economy moving. Here’s some things we recommend spending your check on:
1. Essentials first, always.
If you’re someone who recently lost your job, this one might be a no-brainer. But if you’re still working, chances are you might not really be thinking about the bills. However, having the extra money will be great to put towards next month’s rent or the future light bill. It might be tempting to just hit up a drive-thru for meals, but getting groceries like fresh fruits & vegetables might be a better way to spend your money (and they'll last longer than one time takeout). Even stocking up on some non-perishable items is a great idea.
2. Build your savings!
Okay, so the money isn’t necessarily going into the economy per se, but if saving is not your strong suit then consider this your lucky break! If the pandemic has taught us one thing, it’s the importance of having an emergency fund. According to a 2019 survey from Bankrate, a personal finance website, only 40% of Americans would be able to pay an unexpected $1,000 expense. Are you part of the majority that wouldn’t be able to? If so, try to put as much of the leftover money (after essentials and bills) into your savings. This could be the perfect opportunity to jumpstart your rainy day fund!
3. Support local businesses.
If you’re going to be spending money on food or items you can buy from a local mom and pop shop, please consider doing so. Although it might be easier and more convenient to purchase from giant corporations like Amazon or Walmart, remember that your local community depends on amazing people like yourself to keep it going! Skip Dollar Tree and hit up the neighborhood 99 cents store, you could help out a family by doing so. Local restaurants are also a great way to support your community! Instead of going to the nation-wide chains, order takeout from those who live in your community.
4. Splurge – wisely.
As we said before, the stimulus check is given to stimulate the economy – basic economics! It’s not wrong if you’re thinking about using it for something fun that you normally wouldn’t buy otherwise. No matter what position you’re in, everyone deserves a break from all of the stress this recent pandemic has brought. While we can’t give you an exact answer on what to buy or how much to spend, we do advise you to think critically before swiping your card! Just make sure all of your basic needs are met first, then you can start thinking about what to splurge on.
5. Pay down any high-interest debt.
It’s incredibly hard not to want to keep your money in your account once the check hits. But if you’re in credit card debt, medical bills debt, or have student loans (or something similar), owing money means you still don’t have money – no matter what your bank account says. It might be hard putting a larger chunk of money towards that crippling mountain of debt, but the sooner you pay it off, the closer you are to financial freedom. In addition to this, if your finances were directly affected by the coronavirus, be sure to call any company you owe money to and mention this! You may be able to get some type of help or adjustment to your payments. Note: you must mention the coronavirus.
6. Start an emergency kit.
The chaos that’s emerged at grocery stores has shown us the brutal side of humanity. While we’re not hoping for another situation like the pandemic, it’s better to be prepared for anything the future may throw at us. Use some of the money to stock up on non-perishables, water bottles, flashlights, batteries, medications, basically everything you might need in case of a natural disaster or a pandemic. You don’t need to go overboard and build a bomb shelter, but having a little buffer will pay off in the long run if such an event would occur.
7. Donate a portion of it.
If you’re someone who received a stimulus check but are still in good financial standing, consider donating a piece of your check to charity. Any amount helps! There are many people all around the world who are much less fortunate and would benefit greatly from your donation! Just be sure to research whatever company you’re considering donating to in order to make sure your money is going directly to the cause. You can also donate to your local community and directly help those around you. Either way, donating is an honorable act and if you choose to do so, we at Modern Gents commend your generosity!
Whatever you choose to spend your money on, do it wisely!
In the end, only you can decide what to do with your stimulus check. We hope that at least one of these suggestions stood out to you and gave you some insight. If you’re still unsure, the best thing to do is to wait and think about it, there’s no need to go out & spend it all at once! Do you have any tips on what to spend the stimulus check on? Please share them in the comments below!
As always, we want to say thank you for continuing to support Modern Gents. Our company would not be here if it wasn’t for our amazing, loyal customers! We hope you’re continuing to stay inside, stay safe, and stay healthy. We’ll see you in our next post!