As of this writing, over 100 million stimulus checks have gone out.
According to CNN, 90% of American households will be eligible for stimulus checks. Individuals earning below $75,000 annually can receive the full amount. You can also receive an additional $1400 per dependent.
This money is set to start hitting bank accounts across American on March 17. That money could go toward living expenses such as rent, food, and utilities.
My top five ways to spend your stimmy could help middle-class families start looking ahead to a time when 100 million American households finally are vaccinated.
First, if you can save it, then do it.
Funding an emergency fund can be a lifeline in times of hardship, as many well know during these challenging times. A flat tire or broken water heater can be an unexpected expense that could put someone in credit card debt.
A friend of mine recently joked that the next unexpected bill or expense will probably be estimated at $1399, right after the stimulus checks go out!
If you are one of the eligible Americans due to get a stimulus, then be sure you have a rainy day fund set up. This stimulus check could be your starting seed money toward a 3-month emergency fund.
Second, pay for the roof over your head.
Paying for any back rent or missed mortgage payments is a must. You need housing. Working out a payment arrangement with a landlord or lender is in your best interest.
This stimmy could help keep you housed and your family safe.
Third, put food on the table.
Food pantries such as Feeding America are seeing 200% increases in food assistance requests. That is happening across the country. Some folks are lining up at the crack of dawn and standing in lines for hours to get free meals.
This would be a good time to put this money to use stocking up your cupboards with non-perishables.
Food insecurity is severely affecting the elderly and the 10 million children in American living in poverty.
Stockpiling canned goods, cereal, grains, and nut butters is a good way to spend this money.
Fourth, pay up the utilities.
Seeing news media discuss $5,000 electricity and heating bills in Texas due to cold storm was enough to make me want to set up a savings account just for utility bills.
The New York Times reported how one man owes a whopping $16,752 energy bill! Although this is not common, utility bills are a necessary expense that households must manage.
Many Texans may get some of these skyrocketing energy bills forgiven or decreased as a winter storm ravaged last month that was completely out of their control. Due to not being on a fixed electricity pricing plan. However, until that happens, bills got to be paid.
Therefore, it is a good idea to have a savings bucket just for keeping the lights on, literally!
If you get these bills reduced, then you can simply pay yourself back any refund you may receive. Those funds will go straight back into the savings pot and are not to be spent.
Trust me, you may need them again someday.
It seems like every 10 years, we are in some sort of major crisis. Plan accordingly.
See my post Suze Orman’s FIRE protection plan during COVID-19
Lastly, start a Roth IRA.
You heard me. That account you have been waiting to open for the last few years, do it. If you have all the above covered, then you can afford it.
Honestly, you can’t afford not to.
The easiest way to do this is by opening a brokerage account with a company that will allow you to start with something like $100 monthly automatic investments.
Start building wealth for your future. I started a Roth with $50 a month.
Tens of thousands of dollars later, I do not regret that decision one bit.
So there you have it. My top five stimmy alert spending tips. It will only cost you $1399.99. Ha! Just kidding.
I know some of you may think this is mission impossible, but I am here to tell you that anything is possible.
Because if this was truly a mission impossible, then this blog post will self-destruct in five seconds so memorize the above or take a picture on your smartphone!
So until the next time we meet again, stay safe!