With the, the IRS had until January 15 to send the payments , called paper checks or debit cards The second wave of stimulus payments was made nine months after the expiration of the last March, including a maximum check of $ 1,200. You are entitled to it you didn’t get it like even if you have a
Whether you’ve received your stimulus check or are waiting to get the money through a tax refund, here are six ways to make the most of your payment.
Take care of your most pressing needs first
Above 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. President Biden, for example, extended the moratorium on deportation until March 31.
Set it aside to pay your taxes
Tax season starts Friday and it is clear that theThis means that tax is due in two months. according to the IRS, but will be taxed. If you don’t need to use the $ 600 right away, keeping it close by to pay your taxes is ideal.
Reduce your credit card debt and loans
One way to secure your financial future is to reduce your debt. A significant payment made to pay off a credit card and loan helps reduce the amount of interest paid on 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.
Create or add to an emergency fund
It cannot be overstated 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 during three to six months. While the, it can be used as a starting point. If you’ve exhausted or spent some of your emergency funds, this second stimulus check can help get you back on track. A can be used to keep the money safe.
Donate to people who need it more
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 your children
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 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.