Market Briefs Newsletter

Subscribe to our FREE finance & business newsletter to get financial news you can finally use.

Thanks for signing up to Market Briefs! Please check your email to confirm your subscription. If you don't see the email in an hour, check your spam and promotions folder. 

Be sure to read our Privacy Policy & Terms of Use.

  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Minority Mindset

Minority Mindset

Defy all odds.

  • Home
  • About
  • Blog
    • WEALTH
    • REAL ESTATE
    • CRYPTO
    • STOCKS
  • PRODUCTS
  • MONEY 101
  • GUAC TALK
Advertiser Disclosure

Our promise to you.

Minority Mindset, LLC is an independent, advertising-supported publisher. We are not an investment advisor. Always do your own due diligence and never blindly listen to a random article on the internet. We do our best to provide financial education with our free videos, articles, tools, and other self-help content. But these are for informational purposes only, they’re not investment advice.

Minority Mindset does not and cannot guarantee the accuracy or applicability of any information regarding your individual circumstances. The examples we provide are hypothetical and we encourage you to get advice from a qualified professional regarding specific investment, tax, legal, and financial issues. Previous market performance does not guarantee future performance.

We want everyone to be able to make educated financial decisions. We do not feature every company or financial product available. However, we’re proud of the financial education and guidance that we provide at no charge.

We’re paid by our brand partners and advertisers. This may influence which products we mention, review, and where they appear on our site. But it does not affect our recommendations or advice.

See more from Saving

5 Smarter Ways to Spend Your Stimulus Check

January 26, 2021 by Brooke Joly

Brooke Joly January 26, 2021

5 Smarter Ways to Spend Your Stimulus Check

Disclaimer

We only endorse products that we truly believe in. Some of the links below may earn us some extra guac at no additional cost to you. Please pass the chips & thank you for feeding our habit.

As I see it, there have been a few bright lights during the COVID pandemic.  One of those being the government stimulus checks. These stimulus checks are, by design, for the people of our country to stimulate the economy by giving us disposable cash to boost consumption.

The reality is, for many people, this money is going directly towards covering the bare necessities like rent, bills, and food. If this is the position you find yourself in, you’re not alone.

These stimulus checks really serve the purpose of helping people who suddenly find themselves out of work or falling on hard times due to the pandemic.

But if, like me, you’ve been lucky enough to keep your job and be meeting your monthly financial obligations, then you are the intended target for boosting consumption.

I feel incredibly fortunate to be in a position where I can use this money for something other than putting a roof over my head.

Spending Stimulus Money the Responsible Way

Of course, when I got my first check, my first inclination was to blow it on something ridiculous like a new wardrobe for that office job I no longer go to. Or to set it aside in my vacation fund for all those trips I can’t exactly plan this year.

But then the logical side of my brain stepped in and told me I could find some really responsible ways to spend my stimulus check.

Remember that if you have a rent payment or other bill that’s due, that should be at the top of your priority list. The items I outline below are for those who have all of the necessities covered, and the money is truly an excess of funds.

And in an effort not to be the only adult in the room, I challenge you to consider these somewhat more financially responsible options when you’re mulling over what to do with your latest mini-windfall.

Erase Lingering Debt

Paying off debt is undoubtedly the most responsible and un-fun choice for your stimulus money. But if you have a lingering debt that’s hovering around $1000 or less, why not use your stimulus check to pay it off and get it done?

It makes it easier to think about it in terms of the money you’ll free up instead.

Last month my husband paid off his truck, which had a remaining balance of $1200. By doing so, he freed up $200 each month. So as he saw it, the lump sum payment now enabled him to re-allocate that $200 towards a new monthly expense instead.

Maybe paying down those student loans today means you have a new recurring sum to use for something more fun like investing next month.

Invest in the Market

The beautiful thing about investing these days is that you don’t need much money at all to start. Robinhood and other apps let you easily invest in a fractional share. That means you don’t need to drop around $800 on that single share of Tesla if you don’t want to.

Instead, you could break down your stimulus check to purchase fractional shares of a few great companies.

Each year, one of my primary investment goals is to make sure I max out my Roth IRA contributions (a limit of $6,000 in 2021).

So my recent stimulus checks have been helping me hit that investment goal. If you have an investing goal, consider turning stimulus money into a money-making vehicle by allocating it towards stocks, bonds, ETFs, or otherwise.

Start Your Emergency Nest Egg

There’s no single decision that’s made me feel more secure in my financial position than choosing to have an emergency fund. It is one of the surest ways to provide a buffer between you and life (which this pandemic has shown us can be incredibly volatile).

I’m a product of Dave Ramsey’s Financial Peace University. That means I followed his well-known baby steps to financial freedom. The very first step is to save $1000 in an emergency fund. So with a hefty stimulus check, you’re there!

Think about your emergency fund as combating unnecessary future stressors. Even setting aside a few hundred dollars can make a big difference if a tire blows or you finally get that forgotten dentist bill from last year’s visit.

Save It for Taxes

Remember when I said paying off debt was un-fun? This might be less fun, but paying taxes is one of those adulting responsibilities we all have to come to terms with.

If you think you might be owing some money to Uncle Sam this year, you may want to hold onto your stimulus check to see if you’ll need to hand it right back come April. The best-case scenario is you do your taxes, get money back instead, and have even more to put towards another venture!

Treat Yourself and Support Local Businesses

There is absolutely nothing wrong with taking a sliver of your stimulus check to treat yourself. Heck, if you’re going to be working out at home, you might as well get that set of dumbbells you’ve been wanting instead of continuing to use soup cans.

And if you need to work on your laptop, a monitor to use as a second screen might not be a bad move.

To make an impact on your local community, try to find small businesses near you to support. We all know that Amazon has fared pretty darn well during the pandemic. But Bob and Jo’s Sports Emporium might be struggling.

It is probably better to shop local and pay a few dollars more for your dumbbells if it means keeping people in your community employed.

The Bottom Line

With more stimulus checks on the horizon, it’s a great time to plan for how you’ll spend those funds. Once the check hits your bank account and you see there’s money to blow, it might be too late.

Before you run out to spend your check, remember to take a step back and assess all of the options before you. It’s far better to have something to show for it in terms of becoming debt-free or owning assets instead of splurging on a few gourmet meals that have gone down the hatch and are long forgotten.

Contributor’s opinions are their own. Always do your own due diligence before investing.

Keep Reading:

  • 7 Not-So-Sneaky Tricks For Frugally Upgrading Your Technology
  • Here’s How You Can Save Hundreds On Your Energy Bills Every Month
  • How to Know if Debt Consolidation is the Right Choice for You

Written by Brooke Joly.

Brooke Joly is a Charleston, SC-based writer and wellness blogger helping people create healthy, sustainable habits. She has a passion for assisting people in taking control of their finances to live the financial life of their dreams.

Primary Sidebar

Advertiser Disclosure

Our promise to you.

Minority Mindset, LLC is an independent, advertising-supported publisher. We are not an investment advisor. Always do your own due diligence and never blindly listen to a random article on the internet. We do our best to provide financial education with our free videos, articles, tools, and other self-help content. But these are for informational purposes only, they’re not investment advice.

Minority Mindset does not and cannot guarantee the accuracy or applicability of any information regarding your individual circumstances. The examples we provide are hypothetical and we encourage you to get advice from a qualified professional regarding specific investment, tax, legal, and financial issues. Previous market performance does not guarantee future performance.

We want everyone to be able to make educated financial decisions. We do not feature every company or financial product available. However, we’re proud of the financial education and guidance that we provide at no charge.

We’re paid by our brand partners and advertisers. This may influence which products we mention, review, and where they appear on our site. But it does not affect our recommendations or advice.

More From Saving

  • How Minority Mindset Created Market Briefs
  • Best Finance Newsletters You Can Subscribe To
  • How To Survive The Return Of Student Loan Payments In 2022
  • A Hard Check Can Damage Your Score - Here's Why

Get Your FREE Guide To Building Wealth

& our daily newsletter

Thanks for signing up for our financial education emails! Check your email to confirm your subscription. If you don't see the email in an hour, check your spam and promotions folder.

Be sure to read our Privacy Policy & Terms of Use.

Featured Saving Posts

Minority Mindset Market Briefs

How Minority Mindset Created Market Briefs

Best Finance Newsletters

Best Finance Newsletters You Can Subscribe To

Are Warehouse Club Memberships Worth It

Is that Costco Membership Worth It?

What to Do When You Have Gone Astray on Your Budget

Your Budget is Busted... Get Back on Track With These Simple Steps

The Latest On Saving

Student Loan Repayment 2022

How To Survive The Return Of Student Loan Payments In 2022

Differences Between Hard and Soft Credit Check

A Hard Check Can Damage Your Score - Here's Why

The Lowdown on Labor Day Sales (Plus the Best Deals to Save the Most)

how inflation affects your grocery bill

How Much Is Inflation Really Affecting My Grocery Bill?

How to Get Started With Couponing

How To Get Started With Couponing

How To Buy Healthy Groceries on a Budget

How To Buy Healthy Groceries on a Budget

How to Vacation on a Budget

How to Vacation on a Budget

Combing through your bank statements help you to spot and fix any problems in your finances.

How to Spot and Fix Problems in Your Finances

How to Recover Financially After COVID

Learn what to - and to not - buy at your local wholesale club

13 Things You Should (And Shouldn’t) Buy At Your Nearest Wholesale Store

Footer

As Always Keep Hustlin’

Company

  • About Us
  • Store

Help

  • Contact Us
  • Advertise
  • YouTube

Legal

  • Privacy Policy
  • GDPR Opt-Out
  • Comment Policy
  • Terms of Use

Follow us on:

Disclaimer: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements, and seek independent professional advice, before making any financial decisions. Our content is provided for informational purposes only, and no content that is provided or included in our products or services is intended for trading or investing purposes. We will not be liable for the accuracy, usefulness, or availability of any information transmitted and/or made available by way of our products or services, and shall not be responsible or liable for any trading and/or investment decisions made by you based on any such information. For a further understanding of this Disclaimer and use of our site, please see the information contained in our Terms of Use and Advertising Disclaimer.

Minority Mindset may earn a portion of sales from products that are purchased or recommended through our site as part of our Affiliate Partnership with retailers and brands.

Minority Mindset has partnered with CardRatings for our coverage of credit card products. Minority Mindset and CardRatings may receive a commission from card issuers.

© 2022 Minority Mindset, LLC. All Rights Reserved.