The first stimulus check may have come and gone, but now with the next stimulus check being deposited into our accounts, many of us are left with the task of deciding how to spend the new money. Of course, we may want to spend the money in a bunch of fun ways but buying new clothes or going out for a big dinner might not be the smartest financial move for ourselves. Maybe you want to make the most out of this extra cash and you need some inspiration on how to go about doing just that? Read below for 5 beneficial ways you can spend your next stimulus check.
Putting your stimulus check into your retirement savings is never a bad idea. If you don’t already have a Roth IRA account, this is the perfect excuse to open an account and make your first deposit. Don’t worry about owing income taxes on your check. Since the stimulus check isn’t considered taxable income, you won’t have to pay any extra money in the future.
Depending on your life circumstances, there are several different ways you can use this stimulus check and put it towards education expenses. Whether you are still making student loan payments or you want to start a 529 savings plan for your children’s future education plans, this stimulus check can help lessen those larger financial bills.
The pandemic was tough on some of us more than others. If your finances are in order, you might want to consider putting this stimulus check towards a fundraiser of your choice. Researching small businesses or local charities you can help might make you feel better about how you spend this money. When you file your 2021 taxes, make sure to note your donation so you can claim the standard deduction.
There are several different ways you could invest your stimulus check. For starters, you could invest this money in yourself. With the extra time on your hands, you could take an online course that you are interested in or spend some extra money kickstarting a healthier lifestyle. Another option would be to invest this money into the stock market or a local business you support. Investing can help put this extra money to good use where you will benefit from the decisions in the future.
Of course, saving your stimulus check is always a smart option. Who knows what financial difficulties lie ahead in this new year, adding this sum of money to your emergency fund will help strengthen the net that’s there to catch you just in case. Can’t deposit it all? Even taking a percentage of this check and putting it into your savings can help make a difference.
Were you expecting to see this stimulus check in your bank account and haven’t seen it yet? Head over to the IRS page here and learn more information on the status of your payment.
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