Those payments would only be made a few months after theThe congress was approved at the end of 2020. While most should have received it though the IRS has said so If you haven’t received yours yet, you can claim it now as a even if you have a (Your possible Could be too
A Bloomberg survey from 2021 found that nearly two-thirds of respondents plan to issue their incentive checks immediately, while just over a third plan to save it. Whether you have already received your stimulus check, wait for your payment via aor are looking for 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. Check out which programs you can take advantage of and allocate the money accordingly. For example, President Joe Biden 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 money right away, keep it on hand to help with your taxes, so that the sting is reduced 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 a 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
It cannot be stressed enough the importance of having an emergency fund. As this pandemic shows, the world can change very quickly. The fund should be equal to the amount spent on expenses over three to six months. While the, it can be used as a starting point. If you’ve swallowed or even exhausted your emergency funds, the stimulus check can get you back on track. A can be used to keep the money safe.
Donate all or part of it to people who need it more
Those lucky enough to not need money 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 childcare package provides extra money for each 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 Marguerita Cheng, a certified financial planner. “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.