Next Round of Stimulus Checks... and how to spend them.
As we await the next round of stimulus checks, this is a good time to weigh your options. The payments are expected to be around $600 per individual, which is down from the $1,200 we received earlier this year.
The first checks were only given to those individuals whose adjusted gross income fell under $75,000 for individuals, and $150,000 for married filing jointly. The amounts where phased put for incomes above these amounts. We expect those numbers to remain the same.
Here are some things to think about before you spend your next check.
- If you are jobless, please consider your food, shelter, and medications first. Providing for your family is a must and should be #1.
- If you are lucky enough to not be in that situation, then you can put your money to work. $600 may not sound like a lot of money but it does have the potential to be a lot more down the road.
- I suggest to start with credit card debt first. This year has been a struggle and you may have had to put more than you would like on your credit care. Use this next round of stimulus checks to pay down those high-interest rate credit cards. The sooner you can get rid of that burden the better.
- If you already have your debt situated, consider putting more in your emergency fund. A general rule of thumb is 3-6 months of expenses that you can quickly access. If you are past that point of financial freedom, do consider investing more in your individual retirement accounts. I have a video here all about Traditional IRAs.
As a suggestion, you do not have to use these monies for one purpose, you could consider diversifying between savings and retirement. Another option is Investing in yourself buy a book or invest in an online course. Invest in yourself, there is nothing wrong with that.
If you have any questions at all, feel free to reach out to any member of our team or schedule a meeting below.