The coronavirus has caused uncertainly in every aspect of our life. Our financial, physical and mental well beings are all being tested. Fortunately, the government is taking steps to help on the financial side of things. In this post I’ll dive into how to spend your stimulus check.
How much will our stimulus checks be for
Fortunately, the government has tried to be crystal clear on this front. In short, each adult will get $1,200 and each child/dependent under the age of 17 will receive $500.
The quote below from this article at money.com goes into specifics on how those dollars are phased out for higher income earners.
An individual tax filer with an adjusted gross income of $75,000 or less, and married couples jointly making up to $150,000, will receive the maximum amountMoney.com
Alternatively you could head over to the Tax Foundation for an easy to use calculator to determine how much you’ll be getting. It looks like the government will use the last set of taxes filed to determine your adjusted gross income.
When will we get our stimulus check
I know so many Americans are hurting for funds right now. I hope that a combination of unemployment benefits and savings are going a long way.
The latest I have seen from this article at Business Insider is that checks are set to go out sometime around April 9th and no later than April 14th.
If this is true, which I hope it is, it seems the government is doing their best to act quickly.
How to spend your stimulus check
The 1,200 stimulus check is coming when a significant number of Americans need it more then ever. The best way to use the check is extremely situation dependent.
If you’re struggling
Now is not the time to think about what you could have done or should have done with your finances. Its best to think about surviving this pandemic and coming out on the other side as unscathed as possible.
If you lost your job and are struggling to make it to next month, the best use of the funds is to get it to go as far as possible. Oftentimes this will mean buying groceries or other day to day essentials.
While everyone’s situation is different I’d think long and hard before using these funds to pay a mortgage. It may take several months, and even up to a year, for a bank to foreclose on your house.
If you feel comfortable with your situation
If you feel comfortable in your financial situation the best use may be to pay down high interest credit cards or add it to your emergency fund.
I’d lean towards adding it to my emergency fund, mostly because that’s the most conservative, but do whats best for you.
If you don’t need the money
If you don’t have debt, have plenty of investments and don’t need the money, by all means, spend it at local businesses. Buy gift cards, leave big tips and get it into your local economy anyway you can.
While small businesses have a lot of resources at their disposal every bit goes a long way.
Now more than ever be conservative with this extra cash. If you can’t handle the worst case scenario over the next several months its best to leave the cash in your bank account.