8 Ways To [Wisely] Spend Your Stimulus Check

[Shuri]

The corona virus has had a major impact on the lives of people around the globe. There's no denying it. Our economy has slowed, paychecks have stopped, and some states have even froze the hiring of state employees. But do you know what hasn't stopped?

Bills

Rent, mortgage, internet, phone, heating, air conditioning, car, insurance...all bills that can't wait for the shut down of our country to subside. That is why the stimulus package in America has granted most American adults a payment of $1,200 to be deposited in their accounts by the IRS, and most Americans will be using the money to stay afloat.

But what if you're someone who is still working, and doesn't necessarily need the money? Your paycheck hasn't changed, your hours have not been cut, you are still employed, and all bills are current. What should you do with your money?

Below are some suggestions on how you can spend your money on things other than essential bills.

Don’t

This seems like the most obvious option, but you’d be surprised how many people don’t think about this option. If they do, it’ll be for but a fleeting moment.

In truth, you should have enough money in savings to sustain yourself and your family for about 2 months. Personally, I’d recommend 4 months as you never know what extra expenses may occur, so it’s better to be safe than sorry. Most Americans, especially millennials and younger, can’t say they have this. Why? Mostly because of the recession in 2008-2009 coupled with inflation and the fact that wages haven’t really increased that much to keep up with it all.

If you’re someone who isn’t in desperate need of anything right now in this moment, the best thing you could do is save this money. Put it towards a retirement account, savings account, or your ROTH IRA if you have one.

Student Loan Payments

Student loans have been the bane of many borrowers existence. My own student loan payment is about $260/mo. I still have about 3.5 years left to pay it, too. My monthly payment has never been consolidated nor lowered ever, either.

This is why this is the perfect time to pay your loans. Why? Well, most people with student loans aren’t making a dent in their principal amount because they’re too busy paying the interest. That’s why your friend Mary started with a principal amount of $38,000 in December 2015, and her current payoff is $39,500 as of April 2020, despite making timely payments every month.

As of March 13th, 2020, student loan companies have entered federal student loans into a state of forbearance. Basically, this means that you don’t have to pay your federal student loans until after September 30th, 2020. This also means that your federal loans are not accruing interest during this time, so not paying will not hurt you.

But if you’re someone who is struggling with student loan payoffs, you may want to keep paying. Whatever payments you make now will apply to your principal balance of your federal loans. This means that pesky interest that has been dragging you down for years can’t touch you. Your payment is immune to its poisonous grasp.

As of right now, private loans still need to be paid. However, if you have any federal loans, consider continuing your payment. It’ll help you in the end.

Invest in the Stock Market

This option requires you to be informed and savvy on the stock market, which I am not. However, stocks for certain businesses are cheaper than they have been in years, and it’s definitely a buyers market right now.

Only choose this option if you know what you are doing. There are some stocks worth buying right now, say Procter and Gamble, while others could cost you even more money, which is not what you want right now (or ever, if we’re being honest). But if you’re looking to make an investment decision to pay off in the future, explore this option. Just make sure that you do your research, first.

Small Business Startup

Have you always wanted your own bakery? Did you want to become a YouTuber, but you don’t have the proper equipment? Is photography your calling, but you can’t afford that brand new professional camera?

I’m not sure what your passion is, but that $1,200 could help you get started in building your own small business. Most people don’t start their own business for many reasons: too much responsibility, too expensive, unsure of the future, etc. But if you’re someone who truly wants to start working for yourself, and you’re ready to take the jump, start by investing your $1,200 in equipment for your business.

Pay off a Meaningful Bill

First, unless you have one that is interest free for a certain amount of months, a credit card is not a meaningful bill.

Why? Because credit card debt, for the majority of Americans, is not going to go away any time soon. Therefore, it’d be a waste of money to apply the $1,200 to a credit card payment. According to TheStreet.com, the average credit card debt per person is $5,331.00. That’s over 4 times the amount of your base stimulus check, not including the extra $500 parents receive per child in the house. Even if this debt is spread out among multiple cards, odds are you will probably swipe that card again sometime in the near future. This is why credit card debt is so difficult to get out of once you’re in it. It’s better just to make the correct monthly payments on the card and pay in cash for items when you can so you can avoid swiping the card. This is the easiest way to pay off a credit card.

So what are meaningful bills?

A meaningful bill, as used in this article, is a bill that, basically, isn’t permanent, and it has little to no chance of increasing. In other words, it’s a bill that can be paid off easily and quickly. These bills include, but are not limited to, car loans, mortgage payments, interest free credit cards, child support, medical bills, etc. Basically, put the money towards something that’ll get you more out of debt and help raise your credit score.

Treat Yo Self

If you’re in a good spot financially with plenty of savings, then there’s nothing wrong with treating yourself to something. Maybe you’ve always wanted a Nintendo Switch or a trip to the beach in the future. Maybe there were certain center pieces for your wedding you wanted, but they were too expensive. Whatever it is, there’s nothing wrong with using the check for these purposes. Just make sure you absolutely do not need it for anything else, and you are financially stable. Otherwise, you will severely regret it.

Helping Family

I know, I know…some people are raising an eyebrow right now. Odds are, your family all received some sort of check. Regardless, sometimes that may not be enough. What if you’re still working as is your partner, and you all jointly received $2,400? Great! But what if, hypothetically, your father is a diabetic, lost his job, and still has to pay for insulin? Most likely, his check won’t go very far.

Doesn’t he deserve your check? Hell no.

What, you thought I was going to say yes? Facts are facts. The check is yours, and it was given to you. You paid into the taxes that entitled you to the check, and you can spend it however you like. No one deserves any part of your stimulus check except maybe your kids. But if you are someone who truly doesn’t need it, but you know a family member who does, there’s nothing wrong with helping them. My parents did not qualify for the check because of their income. However, if they needed it, I would give them mine since I’m still working full time from home.

College Fund

This option is more for parents than anyone. If you have a child, and you want them to have the option to go to college, this would be a good place to put money from your stimulus check. College funds are great because they don’t necessarily have to be used for college. My own parents started a college fund for my siblings and me, and we ended up having about $15,000 each to our names by the time we entered college.

My brother, sister, and I chose to go to college, so most of the money went there. However, it can also just be given as a gift to your child when they get older. Most college funds and savings accounts allow for the money to gain interest and grow over time. That means whatever you put in now will probably increase by the time it is withdrawn. So even if your child doesn’t go to college or a technical school, it’s still money to get them on their feet upon graduation.

Hopefully there's something on this list that is a viable option for you. If not, feel free to share the suggestions to others as food for thought.

What other things can you do with your stimulus check?

[Matt57]

I’m not getting one, but I don’t agree with saving it. The purpose of the Stimulus is to use this increased purchasing power to help keep the economy propped up and put money into circulation. Then again, if it is in the bank, the money isn’t actually physically yours and they bank use that money for distribution but will still have money there for when you do withdraw it or use it.

Let me rephrase my comment: I disagree with people who are cashing it and keeping it under their mattress and preventing it from going into Circulation.

[Shuri]

I don't. It's a good place to start saving it. There aren't too many people that can do that, anyway, so the few that can are not going to disrupt the economy.

[errorgoodnameunfound]

Dude, that's why the majority of people are paycheck to paycheck and one missed is disaster. Learn to save a bit for bad times. The Fed has been printing money for years. The debt is bigger than the average instagram ass. What ever happened to saving for a rainy day? Nobody owes an economy "circulation." That's a lie.

[dandee55]

Savings? No. That defeats the whole purpose. Why do you think it's called "stimulus"? It's to stimulate the economy. We need to bring the economy back to life. It's dying. If we don't bring it back (and support American businesses), we'll have another Great Depression.

[Shuri]

The number of people who can put it in to savings is so low that those who do probably won’t impact the economy that much. I don’t personally know anyone outside of my immediate family and my boyfriend that can afford to put it into savings.

[ZeussLightningBolt]

I thought it was just so people could pay off their bills
If it's too stimulate the economy, than wouldn't it have made more sense for Trump to just send it to business owners?

[Shuri]

@ZeussLightningBolt Businesses got some of it, too. It’s for people to pay bills. But essential workers like myself don’t necessarily need it depending on what they do because they’re still keeping the economy going. I’m a teacher, so I’m still getting regular pay and benefits.

[ZeussLightningBolt]

Yeah, I work for the state and they're still having me work, so I don't really need it either, but Trump doesn't need to know that. :p

[dandee55]

@ZeussLightningBolt Well, that's not how it works. That doesn't bring (much) revenue...
But that's supposed to be the second payout -- to businesses.

[Shuri]

You're not understanding the math. The stimulus check it to stimulate the economy, yes, but I'm still doing that with my actual paycheck that I'm still regularly receiving. Putting the stimulus in a savings account isn't going to have a huge impact because I'm still able to pay bills on time, pay my rent, buy groceries, and eat out through take out with my regular paycheck I'm receiving. So I'm still keeping the economy going even without it.

[ZeussLightningBolt]

Oh THAT'S what "stimulus" means?

[Shuri]

@ZeussLightningBolt Yes. A stimulus check is to 'stimulate' the economy. But I'm still paying everything like I usually do. I personally don't have anything extra to spend it on. I'm not going to just throw it away, though, on something I don't need. So mine is in savings until I need it or find something I want.

[ZeussLightningBolt]

Same
Mine's going in my travel fund

[missangelavoss]

I just bought grocery’s but then I started having car trouble and mechanics all over my town are being assholes charging so much money who’s gonna pay $800 plus labor and parts for a water pump change? Nope not me I’m fine with just taking care of my family’s needs instead of my car at this point

[HOAAH]

500$/month on grocery shopping with three kids, and two adults.
We got new cell phones.
We bought a new fridge.
Some money for church.
The rest into savings.

[dmgstarfleet]

the church donation was a waste

[HOAAH]

@dmgstarfleet and every thing else? But you as a unchristian would say that.

[Shuri]

He’s not wrong, and I say that as a Christian. Tithes are a church tax, and they are not biblical. They originate from Catholic Churches in Britain. They used the tithing in Genesis to make people pay 10% of their earnings to the church but we don’t operate under Mosaic law anymore. Therefore, tithing isn’t required. Also, if you read the Bible, tithing was in the form of crops and sheep, not money. Nothing wrong with giving to the church, but it’s not the same as giving to God.

[HOAAH]

I have never heard of it explained that way.

[Shuri]

Most people haven't. I only know because I majored in English, and I had to take Brit Lit class where almost all literature had God in it. We did a unit on the Bible before we read anything. I doubled checked it, and everything was true. Even with Cain and Abel. God didn't accept Cain's offering but he did Abel's, so not every offering is acceptable. Also, the Bible never says we have to give 10% of what we earn. If you read the tithing parts, most tithes were given as a one time thing, like Abraham's. To be honest, I don't know of a story in the Bible where anyone gave a 10th of their income, either. In fact, tithing isn't even mentioned in the New Testament when it discussing giving generously. You're supposed to give to support those preaching, but a lot of preachers these days can be greedy, and use the Bible to manipulate people into giving more money. I definitely do not believe a preacher deserves a 10th of my money.

[Daniela1982]

Only $500 a month with that tribe? You are either starving or the kids are very young. Teenagers alone will eat you out of house and home.

[Daniela1982]

@dmgstarfleet What do you spend yours on, porn?

[Daniela1982]

Tithing may not be required in the New Testament but still it is written : God loves a cheerful giver. If not for tithing there would be no churches or pastor/teachers who make their living through the giving of the church members - call it their salary. Plus without other people giving/tithing to the church the churches could not help all the people it helps in time of need.

[dmgstarfleet]

@Daniela1982 I listed it in my reply to the original question:

1. Hooker (s)
2. WEED (safely delivered)
3. Alcohol (in case weed supply chains are disrupted)
4. On Line Gambling (takes $ to make $)
5. Circa 1977 x wing fighter in its original packaging
6. a day at Disneyland with a park hopper ticket when they repoen
7. Next year's "Gal-entines Day" (that's about what it costs)
8. Donation to a political candidate
Although the above was stated in humor, any of those would be superior to giving it to an institution that has caused so much death, pain, destruction and ignorance in the world-yes I refer to religion, in particular, Christianity.

[hellionthesagereborn]

huh, I didn't know their were other options then paying bills. Glad to see people are getting money that others worked for and spending it on frivolous things while the rest of us risk losing our homes and starving to death because those same people are saying we are not allowed to work (as if we all are in a position to last months without money).

[Shuri]

No one worked for money from the stimulus package. It come from federal reserves. It has nothing to do with your taxes. Plus there are people like me (teacher) who are still working and receiving full salary but due to how much we make, we still get the money. We don't need it to pay bills because we're still getting out check.

Sorry. I guess you should've been essential or at least a non-essential that can work from home.

[hellionthesagereborn]

So does the government have a side job we don't know about? Did it save up money working a double shift at a restraunt or delivering papers? Of course its tax payers money, the government does not get paid with anything but tax payer dollars. Why would you think otherwise? Again, do they have a job that they haven't mentioned?

As for me "being essential", that's a very elitist thing to say, really shitty, also I'm still working. I'm not complaining for myself, I'm pissed off because we now have to face the fact that almost 15 million americans are now out of a job, that we have to face the very real possibility of a food crisis as we have shut down "non essential" work, like food processing and transporting which is going to cause mass starvation (but glad to know that you teaching (something that can be done online for free) makes you so much better then and more essential then every one else (like those who produce food that keeps our entire civilization running and you alive (clearly they just were to stupid to get a job like yours huh?)).

So by your own admission (ignoring your rampant elitism), your getting a paycheck that is coming out of tax payers pockets while people who where forced not to go to work are getting the same amount even though they are either forced not to work or have been fired because of this quarantine (which is more dangerous then the virus its suppose to protect us from), and we are going to plunge our nation into greater debt while destroying our economy to do it. Seems kind of, oh I don't know, stupid (clearly you don't teach economics).

[hellionthesagereborn]

Now to be clear, I'm not trying to be an asshole, but I am getting sick and tired of people acting like destroying lives and shutting down the country and destroying the economy and risking mass starvation for something that has a death toll less then the standard flu (by current statistical data) is not a big fucking deal. You are making light of this situation by talking about spending a stimulus check "wisely" you know, for things other then survival while people are losing their homes and are quickly going to be, along with their families, on the streets and starving. This is a big fucking deal and people need to stop taking it lightly. Just because your job isn't essential enough that it needs you physically their to do it, doesn't mean others have that luxury.

[Shuri]

You do know the Federal Reserves literally prints the bills, right? Most of the money comes from interest, not taxes. And it's not elitist at all to say a job is essential when another isn't. Essential only means it's necessary for society to continue safely. Unfortunately, some jobs are not necessary for society to continue. If a secretary doesn't go to work, society isn't going to stop. But schools being out means the education process has been disrupted and many workers who rely on schools during the day no longer have anyone to watch their kids while they work (although that is not the main purpose of school, it's how are society uses it these days). As we discovered, grocery clerks are a LOT more important than most people thought they were. A lawyer? A real estate agent? A chef? Three occupations that most would consider more 'elite' than a cashier, but this pandemic has proven otherwise.

You have to get over it. The fact is that there are people who don't need to spend the stimulus check for survival. If you do, then spend it like that. However, there are people, like myself, who do not. That doesn't mean I won't need it in the future, which is why it's in my savings. I could've dropped it on a vacation to Mexico, but I'm not. I also offered my check (as I mentioned in the Take) to my parents because of their medical needs, but they didn't take it because they don't need it. I didn't just write about frivolous items.

I'm wondering if you actually read the Take, or if you just came here to bitch.

[hellionthesagereborn]

You do know what inflation is right? First the only way to get money is through tax, "printing money" waters the money down, it devalues the currency so that the value of it decreases to a point of being meaningless. That's why in places like Venezuela where they did just that, print money to try and make more of it, its value decreased to the point where now they are weaving baskets from the money because that's how worthless it is. As I stated its clear you have never studied economics in your life (this is economics 101, one class should have been able to tell you everything I have stated).

As for the claims of essential, yeah, it is elitist. Your saying that your job is more important then others. Guess what, food is more important then teaching (again, your job can be done by a simple search engine and much more effectively (because you'll be able to acquire multiple sources and help weed out bias that your not going to get at schools (which is also why education has been falling apart in the past thirty years)), infrastructure is more important then teaching.

The fact is your wielding that "title"(arbitrarily assigned thanks to technology which allows you to work from home instead of the classroom (thirty years ago you would be considered non essential (not that your going to take that into consideration)) in a way to show your "superiority", you literally used it to attack me believing that I was non essential (because apparently the only way you can be concerned is if it directly impacts you (good to know that this is what you people think)). Meanwhile your house is essential for survival, teaching isn't we have lived hundreds of thousands of years without teachers and formal education and survived just fine. You know what we haven't been able to survive without? Food and shelter. Yet some how many industries that deal with that are shut down.

[hellionthesagereborn]

The fact is your job is not in jeapordy because technology was created (in a factory that is considered non essential now (ironic isn't it? The only thing that keeps you afloat were the people you looked down on and deemed non essential)) that has allowed you to work from home. That's it, that is the only distinction. Stop being an elitist, stop acting like your better then every one else even as you survive because of the "redneck" farmers and hillbillies, because of the "unskilled unessential" miners that risk their lives to produce the metals necessary for modern life, or the factory workers that create the technology you take for granted, or the oil rig workers and coal miners that ensure we have a functional modern society without which we would all be in far worse state then we are now (and that's why this is disturbing, elitist like you think that we can do away with the "non essential" people but you don't realize they are the foundation for society and without them your life is going to turn to shit).

[hellionthesagereborn]

I did read your take, that was my point. You don't need to spend the money on survival, great, then maybe put your money were your mouth is and give that money to those who fucking do? This is why I hate elitists, I don't care if you donate your money or not, I don't care if you care about the poor or any one but yourself, but you assholes act high and might talk about giving a fuck and then turn around and do absolutely nothing but pat yourself on the back because your so much better then every one else because you talked the talk and that means you don't need to walk the walk. I hate inconsistencies, you claim you don't need the money so your just going to steal it from the mouth of those who do and act like your better then them while you do it. I'd say its unfuckingbelievable but sadly its really not.

[Daniela1982]

First of all, the "Whopping" $1200 isn't going to do much to get you out of debt, but it might go a long way for a weekend getaway to recoup from this stay at home order. Provided of course if you are not behind on any bills, which may be a stretch. Past due bills of course should take precedence.

[dmgstarfleet]

How about:
1. Hooker (s)
2. WEED (safely delivered)
3. Alcohol (in case weed supply chains are disrupted)
4. On Line Gambling (takes $ to make $)
5. Circa 1977 x wing fighter in its original packaging
6. a day at Disneyland with a park hopper ticket when they repoen
7. Next year's "Gal-entines Day" (that's about what it costs)
8. Donation to a political candidate

[genericname85]

lol... to "wisely" spend xD... how about paying the freaking bills that have been piling up since most people are litterally forbidden to generate an income? the majority of people don't have the financial cushioning to just not work for a few weeks XD

[Shuri]

You obviously didn't read this, did you?

"But what if you're someone who is still working, and doesn't necessarily need the money? Your paycheck hasn't changed, your hours have not been cut, you are still employed, and all bills are current. What should you do with your money?

Below are some suggestions on how you can spend your money on things other than essential bills."

[genericname85]

if you don't need the money, it would be quite socialistic to even take it.

[Shuri]

Lol, okay.

[sensible27]

I wouldn't say it's a buyers market. Buyer's market happen during deleavereging, this is not deleavereging. These are uncertain times and the market reflects that. This isn't a correction where all prices are cheaper than before, companies which people think will stay around are stable or have even risen eg Amazon. Do not see a stock cheap and buy it, it is cheap for a reason. Your opportunity to buy has already passed (for most people).

[ohshee]

Yes please everyone vote PLEASE FIRE EVERY SINGLE ONE OF OUR GOVERNMENT EMPLOYEES THAT SAY THEY REPRESENT US ITS BULL SHIT. IF YOU 18 YEARS OLD THEY JUST PUT YOUR KIDS UR GRAND KIDS AND GREAT GRAND KIDS LIFES IN so far in the hole they are screwed and they and all big banks just go richer fire everyone of them

[Daniela1982]

So true, the US will never dig itself out of debt. It's funny how the government can't control it's own finances but if you can't pay your taxes the government will come down on you like a duck on a June bug. Right now we could pay off the National Debt if every man, woman, and child paid $43,000 towards it. But we screwed out children and grand children as they will be the ones having to pay it.

[Phoenix98]

I'll be using mine for bills, I'm still working and saving money since my job (agriculture/seed) is essential. \

I plan on using it to pay off a 1,200$ medical bill though by the time I get my check it will probably be around a 1,000$ or less for the bills so I'll still have some left over in which case I'll either spend it or possibly invest in stocks not sure yet.

[RolandCuthbert]

I am not getting a check. But if you are getting one, I would think you have essential needs. This is only 1200 bucks minus whatever is taken out. In most places that might amount to a month's worth of bills.

[Shuri]

I got one but I’m still getting paid full salary with benefits. I don’t need it for anything essential.

[RolandCuthbert]

Well, good job. You can probably make some investments. Other folks, that money will be gone as soon as they can cash it.

I have laid off so many people. This is crazy.

[CupcakeKiller]

I found out I got an attorney position right before I got the check. I paid my car payment, paid back my brother who lent me a little to buy some business clothes, then you better believe I treated myself.

[Numbnuts89]

I'm thinking about getting Lasik. I'm also going to be getting a little bit of other money, don't ask, I'd rather not talk about it but, I'll basically have enough to do lasik on both eyes, and the stimulus check will help, a lot.. if i get one, of course. I don't know if ill be getting one

[spaz17]

Invest it in the market... if you have no knowledge of the market you can download etrade or robinhood app and start following it to gain your knowledge of how the process works..

[TonyBologna25]

Great take, but I don’t know if it’s the time to invest in a small business lol. I’d say it’s the time to do it once we start seeing things get better. The best time to do it is right after a recession.

[Shuri]

On the contrary. It's probably one of the better times to get the finances for it together seeing as a lot of small businesses can't get loans. The more you have on your person, the less you have to rely on a loan. Plus, so many businesses aren't open, and if yours is something you can do from home, you can start it now with a small client base. That's what I'm doing with my cakes. So many places are closed but birthdays, weddings, and anniversaries are still a thing. I just make them and deliver so they don't have to go to grocery stores.

Plus, honestly, a lot of small businesses will not be able to make a comeback after this. Less competition.

You can start a small business from home without buying a store front.

[lightbulb27]

good! I'd say min 6-8 months of savings... not easy to achieve. stuff happens...

give to another who needs it by way of paying them for work?
eat out once or twice... keep businesses up.

[mattmanyah2]

Don't spend it till this is over you don't know when you will need it... Don't be affraid to spend it on what you need.

[ManOnFire]

I haven't even touched mine. I just leave it in my special account and let it build up with everything else I have in there.

[Meatunnel69]

Investing in a girlfriend without defects

[Underworld158]

What do they call these dolls👍🏼😂

[Underworld158]

She looks so real its scary😏

[Meatunnel69]

@Underworld158 real dolls is the primo brand at like $6000 each not sure who makes this one. I can sense girls on here cringing over our conversation 😂😂🤷‍♂️

[Underworld158]

I sense that too😂but i can't help it this doll hawt

[dmgstarfleet]

Careful-they have a limited shelf life and rot on the inside before it shows on the outside

[Meatunnel69]

@dmgstarfleet thats true for all women though

[Underworld158]

@dmgstarfleet lol totally agree

[errorgoodnameunfound]

And the winner of best stimulus powered spending goes to... MEATUNNEL69 *applause* *cheer* *manly toasts*

[Underworld158]

@errorgoodnameunfound 👍🏼Yep he is a guy with a plan

[Meatunnel69]

@Underworld158 there are companies who service the lady parts keeping them taught and supple for future relations especially if you get emotionally attached you wouldn't want to trash her in the garbage can when she tears a fold

[Meatunnel69]

*taut not taught 🤪

[ObscuredBeyond]

I bought a new tent, and fixed my van's oil pan. And flushed the power steering.

[andreasderjuengere]

A 'stimulus' check to me sounds like economical masturbation - it only benefits the economy.
Instead, I suggest to try new and better ways?

[OddBeMe]

We’re entering a recession so I’d suggest savings and keeping lines of cash open. If you do invest, buy etfs and mutual funds. Single company stocks aren’t gonna make us poor folk rich.

[Blindguyplaying]

You forgot to add hookers and blow to the wisepy ways list