Are you unsure of what you should spend your next stimulus check on?
It’s okay if you are since millions of other people are, too, with COVID-19 still being a looming threat this late into 2020. However, despite the confusion of the pandemic, some extra income from the federal government can help set your mind right—or at least help you alleviate some stress.
With the U.S. government making headway to officially approve the second round of stimulus checks for the fall, you may be gearing up to do some spending—here are some of the best ways to use your money wisely so that it makes an impact on the future:
1. Pay Off Debt
This isn’t the sexiest idea, but it’s an important one.
If you use a credit card to help you get through these tough times then, that needs to be paid for or else your credit score is going to plummet. Not to mention, you’ll receive a higher interest rate on future loans which can drive you further into debt.
Another loan you may have to pay off (or at least make progress toward) are your student loans. Thankfully, the federal government has extended payment deadlines and interest rates for student loans over the coming months, but that doesn’t mean you can’t chip away at them little by little.
And you don’t have to pay all of it off at once either—you can set aside any percentage of your checks to your student loan or credit card debt and take baby steps toward being debt-free.
2. Contribute Toward Your Retirement
If you have nothing else to immediately spend your next stimulus check on, then putting it toward your retirement savings is a smart move.
When saving up for retirement, you’re going to be investing in things like stocks and bonds which will grow your savings if done right. Whether that’s through your own portfolio or not is completely up to you.
It can be overwhelming to set up your own portfolio and know how much of your money you want to invest in stocks or the like. Don’t fret though, you can use some of your stimulus check on a Robo advisor which will, in turn, make smart investment choices with your money, all working toward your financial goals.
For a list of the top 10 Robo-advisors of 2020, check it out right here: 10 Best Robo-Advisors of 2020.
3. Upgrade Your Home Office
If you’re looking to spend your next check on something more tangible, then as a freelancer, you should try improving your home office.
Of course, there are the obvious things like a new desktop computer, a comfortable chair, or even a new desk. However, there are arguably more important, immediate purchases that you can benefit from.
For instance, if you’re not by a window, you aren’t getting any natural health benefits from the sun. Therefore, maybe you should invest in a nice lamp—maybe an overhead one that produces a healthy amount of light to keep you productive. A new coffee maker could do wonders for you, too, if you’re the type of person that has a hard time waking up in the morning. Also, if you’re working at home all day and dealing with lots of projects, clients, and Zoom calls, then maybe it’s time to invest in higher speeds for your internet connection.
When working from home, you’re going to want all the expediency and energy you can get, so think of things that will boost your productivity.
New York Magazine offers a great list on some office essentials, check it out!
4. Pay For Needed Repairs
It seems that everyone’s car always has something negative going on with it, like a “check engine” light clicking on or tires going flat.
So, if you have nothing else to spend your stimulus check on, you should pay for the repairs you need on your car. Or if you don’t have a car to get around in, just save up for one altogether.
Another useful option is to renovate your home.
After all, you’re spending more time there anyway, and maybe your walls could use some fresh paint? Maybe your roof needs repair from a recent storm? Maybe all that time inside has forced your dog to ruin your carpet? Spending money from your stimulus check on home improvements isn’t a bad idea. Plus, you can always put the money towards an effort to buy a new house if you’re sick of being a renter.
Oh yeah, paying rent—your stimulus check is good for that, too.
5. Go On A Vacation
Your freelancing job keeps you cooped up in your house and on the computer, so it’ll be good to get out and explore some new places you’ve always wanted to visit with the extra dough.
Also, airline tickets are the cheapest they’ve ever been due to less travelers taking to the skies. That said, why not visit a new country you haven’t been to or a new state with some cool landmarks? Perhaps you can rent out an awesome air BnB mansion and have the best week or weekend of your life?
Maybe you don’t want to go anywhere? If that’s the case, you can go on a “staycation” where you kick back and relax for a week. Pay yourself for your time off and use some money to purchase all the streaming services you could ever want.
There’s certainly a lot to choose from, but if you don’t have any other ideas on how to spend a stimulus check, then just spoil yourself!
6. Educate Yourself
Finally, if you don’t want to use the money on repairs, paying off debt, vacations, or the like, why not use some of your next stimulus check to learn a new skill?
There are so many great sites with online classes now like Learn from Fiverr and Lynda.com, all for just learning cool new skills. You can also take the time to improve your freelancing knowledge with any kind of training or certifications you’ve been meaning to get.
Manage Your Money with AND.CO
Regardless of what you decide to spend your money on, trust that AND.CO helps you manage your money in more ways than one.
From client invoicing to time-tracking tools, you can ensure that your freelance career is monitored at all times, and that your earnings are going toward the right places. Sign up for And.Co today and see how you can transform your finances.