The United States of America is one of the countries most affected by Covid-19. Some of its citizens’ economic positions are devastating due to job loss and lockdowns in some states. The US government comes in and helps this group of people during such uncertain times. It facilitates this through a stimulus check.
What is a stimulus check?
A stimulus check is a check sent by the government to the US taxpaying consumers to stimulate the economy during uncertain times. Through this, the citizens can afford basic needs and pay their bills. Consumer spending is very fundamental for the sustainability of the economy. To enhance spending during such times, the government has a stimulus check plan.
A stimulus check can either go to the consumer directly or act as a tax credit correspondent. People with outstanding tax balances will have their checks applied to those balances.
Stimulus checks also appear as fiscal policies. This means measures that the government takes to influence the economic environment of the country. The federal government places measures on spending and taxation to ensure the economy stands even in tough times. Through the increase in spending and decrease in taxes, the country’s economy can prevail during a crisis. The reason for this policy is to boost the consumption of goods and services.
Best ways to spend your stimulus check
There are many ways to spend your stimulus check. Below are some of the best and more meaningful ways to spend your stimulus payment.
1. Paying off your bills and debts.
The current pandemic has forced many people to stay at home without any source of income. The bills keep rising, and they need settlement. If you have the stimulus check, you can use it to pay off some outstanding bills to help you keep moving. Medical bills, rent, water, and electricity bills; you can pay them all using the stimulus check.
If you have some debts acquired before the check’s arrival, you can settle some, if not all, using the payment. Mortgage, loans, creditors, and lenders’ money can be paid using a stimulus check.
2. Boosting your emergency fund
This is one of the best ways of improving your finances using the stimulus check. If you do have an emergency fund account, the current pandemic should be a wake-up call. The Covid-19 Pandemic has hit hardest those who do not have an emergency fund. This is because their only hope is the stimulus package which takes some time for approval.
Upon receiving the stimulus cheque, you can deposit some money into your emergency account. If you do not have one, it is possible to use some cash to create one and deposit a certain amount of money into it. There is peace of mind when you know you are prepared in case an emergency arises.
3. Pursue personal-development opportunities
The stimulus package can help you develop your entrepreneur skills. You can enroll in entrepreneurship classes to gain more skills. Have you been asking yourself where you can get money to finance some short courses like writing, dressmaking, web designing, or even hairdressing? If you are interested in learning such techniques, you can use the stimulus payment to finance them.
After you are through with the classes, you will have more chances of making more money than before. The skill can make you earn a raise at work, get a well-paying job, or acquire more clients for your business.
How to invest your stimulus check
When you already have a reasonable budget and an emergency fund, you may opt to invest your stimulus package. One of the best ways to invest your stimulus is through passive income assets.
One way of investing in the stock market is through RobinHood. It is a financial investment app where you can buy and trade your assets. Robinhood acts as a brokerage for your assets. The good thing about Robinhood is, you do not need any investing experience because of its simplicity.
You can operate your account using the smartphone app. Management of your investment is not complicated. There is no minimum amount required to start an account at Robinhood, and upon signing up, you get a free stock equivalent to $2.50 and $200.
Stimulus checks’ aim is to encourage USA citizens to spend. That said, you can be smart and use the payment to develop yourself or boost your finances for the long-term. The stimulus check can help raise your living standards only if utilized prudently.