Government-issued stimulus checks are on their way to an estimated 175 million Americans. Personal Finance Expert and PenFed Executive Jamie Gayton, explains how best to save, spend, invest, or donate when the money hits your account.
Tips for Stimulus Checks
Stimulus checks are coming which is extraordinary. So, when you have this income coming in from these sources what it does for you is it allows you now to say, “Hey, what should I be doing?” And the reality is there’s a lot of things you can do that make sense.
First off, always take care of yourself. Take care of your necessities. So, cover your food costs, cover your housing costs, make sure you’re making your payments on your mortgage or your rent, and also cover your transportation cost.
Second layer you should be looking at is, “Hey what bills do I have to pay to make sure that I can maintain my lifestyle the way I’m maintaining it right now?” We’re probably not going out to movie theaters anymore. We’re probably not going out to restaurants. So, some of our expenses are coming down, but others can go up to support what we need to do right now in these circumstances.
If I’ve got a little bit of money left over based upon all this, look for the short-term savings which is online savings accounts which typically offer a much higher interest rates, but additionally you can look at longer-term events. Situations where you can look to invest some money for the future.
The fourth thing in my eyes is looking for charities. Take a look at our PenFed Foundation. The things that we do for the folks out there are extraordinary, and if you can support us we would appreciate that very much.