The answer to this question depends on your specific situation, but here are a few ideas that would have the biggest impact on your financial well-being:
Pay your bills.
This one might sound obvious...BUT, if you have already requested from your landlord an extension on rent, called your bank for some flexibility on your mortgage payment, gotten a credit back from your auto insurance company, and have done all you can for some flexibility on bills...use your check to pay those bills and don't look back. Bills need to be paid and that's okay. The stimulus check is meant to help with them during this time.
Save it into your emergency fund.
If your non-negotiable bills are paid for the month, stash your stimulus check into your emergency fund. Typical rule of thumb for your emergency fund is to have at least 3 to 6 months worth of living expenses in your savings account, if possible. This way, you have a pool of funds to dip into for bills for next month, if needed, or a place to turn to for unforseen expenses.
Pay off credit card debt.
First, pay off the minimum payment on your credit card, or credit cards if you have multiple. Then pay extra toward the card with the highest interest first. As you pay off those high interest credit cards, think of the interest as your "return" on each dollar you pay down. Some credit card interest rates are 20%! That's a 20% annual rate of return on each dollar you pay down.
Save into stocks in a Roth account
You can open a Roth IRA on your own, if you qualify. Or you might have a Roth 401k or Roth 403b available to you through your employer.
The stock market is down significantly for the year from all time highs the market reached at the end of February. So, if you purchase shares of stocks while they are low, there is a healthy amount of growth potential in the future. In addition, when the shares grow within a Roth account, they do so tax free.
Not every one of these ideas might apply to you, but it's a start! As always, let me know how I can help with questions about your specific situation. Hang in there, friends!
In good financial health,
Tori
All investing involves risk, including the potential for loss. Past performance is not indicative of future results. A Roth IRA offers tax free withdrawals on taxable contributions.