(FinancialHealth.net) – The coronavirus is causing a lot of suffering across the United States. The virus isn’t just making people physically ill; it’s causing financial problems as well. CNN reported in March that Congress recognized the problem and approved Economic Impact Payments to help Americans through the COVID-19 pandemic. So, what should people spend the money on?
Here are tips to spend your stimulus payment wisely:
- Pay your immediate household expenses. The Fool reports that some states have paused evictions, and banks are deferring mortgage and car loan payments, according to Business Insider. Still, we don’t know what will happen when life goes back to normal. If you have the money to pay your bills, do it.
- Put the money in your emergency fund account. If you’re fortunate enough not to need this stimulus money, consider saving it. Ideally, according to NerdWallet, you should have enough money tucked away to cover six months of expenses.
- Pay down your debt. If you have enough money in your emergency fund and you’re comfortable, consider paying on existing money you owe. For example, you could pay more on your credit card bills. That will increase your credit score and put you in a better position financially.
Consider the stimulus payment an investment in your future. If you don’t need it for immediate household expenses, think before you spend it on things you want, not things you need. You’ll be in a better place financially when the pandemic is over if you do that.
~Here’s to Your Financial Health!
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