5 Ideas to Use Your Stimulus Check Wisely

We don't intend to tell you how to use your covid-19 pandemic relief checks, but if you're still wondering the best way to use your stimulus check, here are five ideas we came up with.

1. Pay Down Debt

For most people, $1400 is not enough to pay off debt, but we'd like to think that it's enough to pay off your most urgent small debt. It's what Dave Ramsey calls the snowball method - the idea that by paying off your small debts, you set yourself up for success by gradually working toward larger ones. In the process, you also improve your credit rating. To see how fast you can pay off your debts using this method, use this calculator tool. Also, the eviction moratorium is extended. You could have a tax return coming due to the expansion of the child tax credit and $10,200 tax exemption for unemployment benefits, so depending on your situation, you might have much more than $1400. It could be enough money to erase your debt and start over again.

2. Save

Yes, we know the stimulus checks are supposed to be spent to "stimulate" the economy, but think of your family first and what it would mean to have some savings. It would mean peace of mind for that inevitable future when you need a set of new tires or your child needs braces. According to Fool.com, another reason to save is that the economy is still not in great shape worse, and things can still get worse, "In April of 2020, the U.S. unemployment rate peaked at 14.7%. By February, it dropped to 6.2%. That's encouraging, but the jobless rate one year prior -- before the pandemic -- was only 3.5%. While there's reason to hope the economy will continue to improve, especially as coronavirus vaccines are increasingly available, many jobs aren't as secure as they could be. And having extra money in savings could be just what gets you through a period of unemployment".

3. Do Home Repairs

If you own your home, this might be the opportunity you have been looking for to finally upgrade that water heater tank or replace that cracked window. Fixing faulty items in your home or upgrading makes sense because, ultimately, it increases the value of your home should you choose to sell it. It's common knowledge that the longer you wait to repair something, the more expensive it will get because its deterioration means more repair costs. Simple home improvements like new paint will drastically change your home's look and feel, making you happier and less stressed. Other home items to consider upgrading for less than $1000 include bathroom updates, landscaping, replacing worn hallway carpet, and adding some energy-efficient fixtures.

4. Invest in EFT's

Speaking to Marketwatch.com, Eric Powell, founder of The Future Mill in Lakeland, Fla said this, “I would be looking for an ETF that provides exposure to as many industries as possible. This provides a growth opportunity for the future, but also offsets the risk of buying into individual companies that may file for bankruptcy.” However, this type of investment should be done by experienced people and ONLY if you are good in all other areas of your financial life and are looking