Getting a Stimulus Check?  How to best use it.

Getting a Stimulus Check? How to best use it.

March 24, 2021

Are you eligible for the recently approved Economic Impact Payment of $1,400? If you are single and make under $75,000, you are eligible.  Eligibility for couples is income under $150,000. Couples will be getting $2,800 while a family of four gets $5,600.  This is a significant windfall for many people.  The big question is how will you use this money?  Here are a few suggestions for how to use the money to improve your financial situation.

  1. Pay off Debt

If you have credit card debt, this would be my first recommendation to pay off.  With a potential interest charge at or above 20%, you will see a huge benefit in getting rid of this debt.  For each $1,400 paid off, you will save another $280 of interest costs at the 20% rate.

  1. Increase your emergency reserves

People often build up credit card debt because they have not set aside money for emergencies.  Consider adding these funds to your reserves and only use for a real emergency. (Which is not a vacation).

  1. Invest

Add the money to your investment account.  Using the historical return for the S&P 500 over the last 20 years year of 5.6%, each $1,400 saved could grow to $7,178 in 30 years.  Not a huge amount but it all adds up.

  1. Have Fun

Are you already debt-free, have good cash reserves and a good savings rate?  Consider a splurge and have some fun.  It has been a tough year.

  1. Donate

Giving to others always feels good too.  There are still many groups struggling as a result of the pandemic. Helping them out is a great use of the funds.  And even better, each person will get up to a $300 income deduction on their taxes when you file next year.

This commentary was created by Aspire Planning Group and is for informational purposes only. The views expressed are based on current market conditions and are subject to change. The commentary does not take into account any investor’s particular investment objectives, strategies, tax status, or time horizon. There are no assurances that the techniques and strategies discussed are suitable for all investors or that the predicted results will occur. The commentary does not constitute investment advice, tax advice, or legal advice. All investments are subject to risk, and past performance is no guarantee of future results.
Aspire Planning Group, LLC is a d/b/a of HighPoint Advisor Group, LLC (HPAG), a registered investment advisor. For current HPAG information, please visit and search by CRD#163768.