The stimulus checks from the CARES Act have begun hitting Floridian bank accounts. As exciting as this is for all of us, it is also a time to think about what should I do with this money? Of course, if you are in a situation where you have lost your job or are having financial difficulty this check is to help you pay your bills and meet your immediate needs. However, after those needs are met or if you are someone who is staying afloat then it is time to consider what can you do with this money. The ideas below are to help you use this money both effectively and to its maximum benefit for you and your family.
Make a new budget
Whether you already have a budget or this is a new idea for you, now is the time to make a new budget. A lot of things have changed in the last month and our world still has no date for when things will it back to any kind of normalcy. We need to create a budget that reflects these changes and helps us to stretch this stimulus check for the duration of the effects. We need to set a budget that allows us to pay our bills and purchase necessities as well as prepare for what is still to come.
Fund an emergency account
Whether you already have an emergency account or this would be your first, there has never been a better time to start putting any extra money you currently have in there. The idea is for you to save money now just in case you get into a situation that you need extra money later.
If you truly can’t set the money aside in an emergency fund, then use the money to pay off or make a large payment on your highest interest bill which typically is a credit card. This will allow you more credit for the future if needed.
The thing to remember with the stimulus check is it most likely a one-time boost for you and the economy. This money has been given to you based on a special refundable credit that will appear on your 2020 tax returns. So now is the time to figure out your budget, cut back where you can, and plan ahead now for the future is unseen.
Budget assistance here.