September 21, 20204 Smart Ways to Use Your Stimulus Check 

If you are fortunate enough to have a secure job during this COVID-19-related economic downturn, you might not need the stimulus money offered to struggling American families. While everyone could use the extra money, here are four wise tips for using your stimulus checks: 

 

1. Pay Your Most Important Bills First. 

Some families are hurting right now. If your family is among them, prioritize and pay the most important bills first. If feeding your family is most crucial, then use the money to buy groceries. Otherwise, prioritize your bills according to need. Just be aware that deferments and forbearances must eventually be repaid. 

 

2. Build Up Your Savings. 

There’s nothing wrong with putting your money aside for a rainy day. Today is a rainy day for millions of Americans. If you’ve kept your head above water so far, then pad your savings for the future hardships. Consider putting your stimulus check-in a Money Market account to earn higher yields while having easy access to the funds. If you’re sure that you won’t need immediate access to the funds, put your money in a PEFCU Share Certificate. 

 

3. Pay Down (or Off) High-Interest Debt. 

If you have high-interest debt lurking around, this is an excellent time to consider managing your debt. Pay off the debt with the highest monthly interest expense, first. This includes credit cards, short-term loans, and more. 

 

4. Consult Your Financial Advisor. 

If your financial situation is currently stable and you don’t have a high-interest debt to pay off, then consider consulting with your financial advisor about investing your stimulus check. Put the money to work with you. Most financial advisors view all stocks as “on-sale” now because they are being sold well under their value due to panic selling in the stock market. It’s a good time to buy, and working with a financial advisor can help you make informed investment choices. 

 

 

We are Here to Help! 

There is a lot of fear and uncertainty today when it comes to financial stability and how to do what’s right, financially speaking, for yourself, your family, and your financial future. 

We’re happy to answer your burning questions and help you with money market accounts, savings accounts, and more. Simply give us a call at (800) 226-6673 today to learn more about the services we have to offer you during these uncertain times. 

 

Each individual’s financial situation is unique, and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.