In these challenging times, where there is a lot of uncertainty and hesitation, Jovia is committed to providing its members with the tools needed to navigate this crisis and answer your questions about the stimulus check.
As part of the coronavirus relief fund, you may have recently received a stimulus check from the United States Treasury. Traditionally, a stimulus check is issued to stimulate consumer spending in the economy, however, since most of us have been issued a stay at home order, and non-essential businesses are closed, the checks are intended to provide some relief to American households that are experiencing financial hardship during the pandemic.
What should I do with my stimulus check?
The stimulus check can be used to temporarily boost your household finances. These are the key factors to consider when deciding what to do with your check now and in the future.
Has your income been impacted?
If so, this stimulus check can help you pay the bills. You’ll want to make your stimulus check last as long as possible to give yourself some breathing room. Establish a budget, prioritize necessities, and spend on critical bills first; housing or rent payments, putting food on the table, and paying utilities is essential.
Are you still working and covering your expenses?
Think emergency fund. Use your stimulus check to open a new savings account or add to an existing account. A high yield savings account that keeps money liquid will provide added cushion to your emergency fund if you need it down the road. But tonight, spend a little! Consider using a small portion to treat yourself and your family. A few nights of take out with the family can reduce stress while supporting your favorite neighborhood restaurants.
Do you have credit card or student loan debt?
If you’re satisfied with your emergency fund and have high interest credit card debt (above 10%), your check can help you pay it down or pay it off. Review the interest rate on your cards and if you have more than one, consider paying the highest interest rate cards first. Saving on interest is a smart investment in your financial future. As for student loans, you should wait to see what actions are put in place as the government continues to work with lawmakers on these loans. In the meantime, most student loan lenders are working with borrowers to provide temporary suspension of payments and interest to provide some relief.
If you’re comfortable with your financial situation, investing might be a good option. The financial markets have traditionally been a good place to grow your money. However, in times of uncertainty there could be additional risk. Work with a Jovia investment professional to ensure you’re investing in opportunities that meet your needs now and in the future. Ready to get started? Learn more!
Donate your stimulus check
We are all in this together. Perhaps you’re in a position to use some or all of your check to help those who have been affected the most by this pandemic. Whether it’s a relative, local business or an organization that’s important to you, now is the time to donate.
Looking for more info?
Go to IRS.gov for official information
Visit the IRS website for answers to frequently asked questions including what to do if you received a stimulus payment in error. In addition, the IRS urges taxpayers to be aware of scams related to Economic Impact Payments using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information.