This pandemic has clearly affected the finances of people very differently. While some are struggling to pay their bills, others are finding themselves with extra time at home and stimulus checks to supplement their regular income. As the second round of stimulus checks hit bank accounts, I suggest that we all really consider our financial priorities before spending this “free money” from the government.
We adopted a one-year old puppy with lots of energy just before the world was shut down by COVID-19. I have stayed active during this pandemic because she insists on going for walks twice everyday. During our walks over the summer, I noticed quite a bit of work being performed in our neighborhood. There was nicer landscaping, which might be expected from people forced to spend more time at home. But there were many big projects taking place too, from new siding and driveways, to additions and new decks. From my view, walking down the street, my neighbors seemed to be doing well in spite of Coronavirus.
Of course, there was no way for me to know whether the couple down the street can really afford that new picket fence or if it was all just financed. I did worry, back over the summer, about the recession predictions and whether people were making the best financial decisions. I wondered if they were just thoughtlessly spending money to improve their homes because that was where they were forced to stay during quarantine. Now, entering 2021, the pandemic continues and financial struggles are worsening.
The second stimulus check hit our bank account today. We are still deciding exactly how this one will be spent, but I can tell you that the funds will definitely not be used on cosmetic home improvements. We used the first stimulus check to finally and completely pay off my student loans.
Yes, this check is only $600 per person. Yes, the smaller check is going to do very little for people who have been struggling for months. My advice for others is this: although the check is relatively small, you can still use it to benefit your finances, instead of just spending it because “it’s only $600.”
Only you know the smartest way to use this stimulus check. A few ideas are:
- Pay off debt (like those credit card charges from holiday presents)
- Deposit the money into your emergency fund (or start one)
- Pre-pay some bills, such as your mortgage (because we don’t know for sure how much longer this will all last)
- Invest the money
I would also suggest that those who really, really do not need a stimulus check consider using the money to help others. What cause speaks to your heart? Is there a charity that you wish there was more you could do to help? Perhaps this unexpected “free money” could be your chance to make a big difference at a time when so many are struggling.
Happy New Year to all of my readers, old and new! I hope that you are doing well during these perpetually trying times. Our family continues to struggle with decreased resources and the nightmares of hybrid/remote school, but we’re doing our best to remain optimistic about better times to come. In the works for this blog are my yearly update on our finances and goals, as well as a whole series on our family road trip in California last February.
Thank you for continuing to follow our journey – I truly hope it inspires you to create your own beautiful kaleidoscope of a life.
