Best Ways to Use Your Coronavirus Rescue Check
With so many lives disrupted as a result of the spread of coronavirus, the government has passed a relief bill to help ease the financial burden on Americans. The government is expected to provide a one-time payment of $1,200 to individuals and $2,400 to married couples.
Recipients’ eligibility will be determined by an income threshold based on their 2019 tax return, or 2018 information if they haven’t yet filed. An additional $500 will be distributed for each individual child. For many Americans, this coronavirus rescue check will provide some much-needed relief. But instead of blowing the money, consider how you can put the check to work for you.
Cover your expenses
The main purpose of the coronavirus rescue check is to help those who are not working or working less cover their basic expenses. If your income has been affected by COVID-19, you may need this check simply to pay your bills or put food on the table. However, make sure you’ve thought through what you need the check to go to. Sit down and determine a new budget. Use your most important bills and the rescue check as some or all of your income. Determine what expenses are a priority at this time. While bills are still due, some of your other expenses are likely lower right now and may not be priorities. Also, consider the fact that coronavirus could affect your ability to go back to work later than you may think. You may wish to conserve some funds for the month ahead without knowing how long this will last.
Put it away
The COVID-19 has pandemic has proven to all of us the importance of having an emergency fund. If you didn’t previously have one or if you’ve had to dip into it, consider stashing your rescue check away. You will be better prepared should more unexpected expenses crop up – either in the near future or even down the road once this has all passed – if you have money saved up.
Pay down debt
If you don’t need the coronavirus rescue check to cover your everyday expenses, consider using it to pay down debt. Before the spread of COVID-19, Americans were continuing to take on increasing amounts of debt. This stimulus check could help you pay down some balances and get ahead, which will be beneficial to your long-term financial health. If you’re struggling with debt during this time, many creditors are offering assistance. Some are allowing borrowers to skip payments or are waiving late fees. Call your creditor directly to see what you can work out if you need the help.
Investing your coronavirus rescue check may sound like a crazy idea with how volatile the market has been through all of this. However, history has indicated that the market always bounces back. Therefore, making a long-term investment now could pay off in the long run. In fact, data shows that those who have stayed invested during economic downturns have recovered more quickly than those who have moved away from stocks.
We’re experiencing unprecedented times, and as a result, the government is taking unprecedented measures. For some, this coronavirus rescue check is necessary to simply stay afloat. For others, it will simply provide a cushion in uncertain times. Either way, this check will be most beneficial if you think through the best way to put it to use for your particular situation. By considering your present and future needs, you’ll be able to make the best decision for your overall financial health.
If you’re struggling financially as a result of the COVID-19 pandemic, Tayne Law Group is here for you. Call us for your free phone consultation today.