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6 ways to spend your stimulus check, no matter how much money you receive



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How will you spend your stimulus check money?

Sarah Tew / CNET

If everything goes according to plan, the IRS can start sending it third round of stimulus controls from up to $ 1,400 each the end of MarchThat’s the timeline that the House and Senate are working on to succeed President Joe Biden’s emergency aid bill of $ 1.9 trillion

Those payments would only be made a few months after the Checks of $ 600 per person The congress was approved at the end of 2020. While most those who are qualified should have received it second payments though the IRS has said so millions of people are still missing their checksIf you haven’t received yours yet, you can claim it now as a Refund discount on your tax return for 2020even if you have a nonfiler or someone who doesn’t normally file tax(Your possible third stimulus check Could be too affected by your tax return for 2020

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 a tax returns or are looking for one third stimulus check (here is who qualify), 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 the IRS won’t delay tax returns like it did last yearThis means that the taxes are due in two months at the latest. Stimulus controls are not taxed, according to the IRS, but unemployment benefits 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.


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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 stimulus check does not cover that entire amount, 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 simple savings account 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 as food banks and hospitalsAnother 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.


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