I have been getting a lot of questions regarding upcoming stimulus checks that you MIGHT receive.
What we know: single adults who have an adjusted gross income of $75K or less will receive the full amount = $1,200. Married couples with no children earning $150K will receive $2,400. If you have children, you will get an additional $500 per child. Payments will start to decrease depending on your income. Payments stop altogether for single people earning $99K and married people with no children earning $198K.
First, I want to say something really important. Please don't spend your stimulus check before you receive it.
What I mean by that, is the worst thing you could do is go out and spend the money on your credit card for things you THINK you need, and then tell yourself, "well, I'll just pay it off with my stimulus check." It's crucial to have a plan for the money you might receive, but that plan doesn't mean spending it now. What does a dedicated plan look like for an upcoming stimulus check? Here are some options.
If you have lost a job, or your income was significantly decreased, put it to good use by paying your bills or getting caught up on behind payments.
Use it to replenish or build up your emergency fund or savings. Try working towards 6 weeks if you can, more depending on how much your income was affected.
There are a lot of "what-ifs" so being prepared financially is critical.
Once your emergency fund is funded, look at paying off high consumer debt. Starting with high-interest debt.
Prepare for the future. The honest truth, we don't know how long it will take to start seeing "normal" again. Start preparing for larger spending events, such as Christmas.
If you are financially stable, have a healthy emergency fund, and have little to no debt, think about supporting local businesses or donating to your favorite charity.
Make sure you have a dedicated plan in place. Make saving a priority so you are prepared for the future.
What do you plan to do with your stimulus check?