Many of us received money from the US government through the CARES Act. What should we do with it? For those who lost their jobs, it’s obvious. But for those still working, not so much. Just because we have a job now, doesn’t mean we’ll have it tomorrow. The longer physical distancing is imposed, the more of us could lose our jobs (the forecast for April was 20%). Then there are those whose jobs are considered essential and the paychecks come as usual. With all this uncertainty, what is the wisest thing to do the money?
The Obvious
If we’ve lost our jobs or been furloughed thanks to COVID-19, the stimulus money can go for what the government intended it to buy. Necessities like paying bills (mortgage (or rent), utilities, medical, etc.), buying food, diapers, cleaning supplies, face masks, gloves, cat litter, or dog toys (Our fur babies are in quarantine too, ya know!) is the reason the U.S. Senate released these funds. Let’s use them to buy time to find an alternate (hopefully temporary) income.
The Not-so Obvious
If our jobs are in jeopardy thanks to COVID-19, the stimulus money can go for things that will give us peace of mind. If we owe federal, state, and/or local taxes, we can send the money back by July 15 (that’s when our 2019 taxes are now due). If we have debt like student loans, car loans, or credit card debt, the stimulus money can make a dent in these bills. If we aren’t carrying debt, stimulus money would make a good emergency fund or seed money for an I-lost-my-job fund (3-6 months of expenses).
The Not-at-all Obvious
If our jobs are essential and our income hasn’t decreased thanks to COVID-19, the stimulus money can go for buying our futures. We can add it to (or start up) an IRA. If we’re comfortable with a bit of gambling, this is a good time to invest in the stock market. It would be wise to engage a financial advisor (ask friends for recommendations) or at least read this. Or, we can choose to be generous with the extra money. Here is a resource to search for reputable charities to support. Also, we can use the money to support local small businesses. The big chains like Domino’s, Dunkin’, and Don Pedro’s will survive, but our favorite Mom and Pop owned pizzerias, doughnut shops, and Mexican restaurants may not. We can order take out or buy gift cards. Know a local home improvement company still open because they are an essential business? Now may be a good time to add that deck (or something else on the house’s exterior). Here is a resource for the Dayton, OH area.
If we choose to save the money now, we’ll spend it eventually, so there’s no wrong way to use our stimulus checks. Please share how you’re using yours in the comments section.
Great read-thank you!