The most recent payment ofshould have found its way into most’s accounts , although the IRS has confirmed that If you haven’t gotten it yet, you can still get one even if you have a (Your possible Could be too
A 2021 Bloomberg survey found that nearly two-thirds of respondents plan to issue their incentive vouchers immediately, while just over a third plan to bail it out. Whether you have already received your stimulus check, wait for your payment via aor look forward to one (here is ), here are six ways to make the most of your payment.
Deal with your most pressing needs first
First of all, make sure your immediate needs are met. This includes food, monthly bills and rent or mortgage. But before you prioritize rent over food, for example, consider that many jurisdictions, utilities, and even banks are providing relief from the pandemic. Find out which programs you can take advantage of and then allocate resources. President Biden, for example, extended the moratorium on deportation until March 31.
Set aside some money to pay your 2020 taxes
Tax season has begun and it is clear that theThis means that the taxes are due in two months at the latest. according to the IRS, but will be. If you don’t need to use the $ 600 immediately, you can keep it on hand to help with your taxes to cut the sting when it comes time to pay.
Delete your credit card debt and loan balances
One way to secure your financial future is to reduce your debt. A significant payment made to pay off a credit card and loan will help reduce the amount of interest paid into an account with a balance. The less interest you pay, the more money you will have available in the future. But before you do that, check with the debt holders as some offer relief, including deferred payments and forgiven interest. Just be sure to read the fine print, as some of the help provided can slow interest rather than forgive.
Start or add to an emergency fund
The importance of having an emergency fund cannot be overstated. As this pandemic shows, the world can change very quickly. The fund should be equal to the amount spent on expenses during three to six months. While the, it can be used as a starting point. If you’ve submerged or even exhausted your emergency funds, the stimulus check can help you get back on track. A can be used to keep the money safe.
Donate all or part of it to those in greater need
Those lucky enough to not need any of the $ 600 for themselves should consider giving it to those who do. There are still many charities fighting the pandemic, such asAnother consideration is to help friends and family members who have been hit hard by the pandemic.
Open a long-term investment account for a child in your life
Part of the aid package provides an additional $ 600 per child. If your family is already comfortable, there is a way to use that money to help your kids’ future.
“If you don’t need this money, consider opening a 529 plan for your child,” said certified financial planner Marguerita Cheng. “Your state can provide a tax break. This money can become tax-free. You can even contribute a modest amount of say $ 50 to $ 100 on a regular basis, if necessary.”
To start a 529 plan, contact your bank or investment firm to see what they have available and what benefits you get when you open one.