Did you find how much you may be getting with the calculator? What are you going to use it for? While many people will need it for monthly living expenses as a result of layoffs that have happened in the last several weeks, some may want to use it differently. Below are some ideas.
- Use for regular monthly living expenses
Use to pay your monthly living expenses, such as rent, mortgage, and other necessities if you are impacted by layoffs and the economic slowdown due to the corona virus outbreak.
2. Replenish your emergency fund
If you don’t need the stimulus payment at this time, consider setting it aside for your emergency fund. You will need at least three to six-month worth of living expenses as a emergency fund. However, it will be a peace of mind to have ten- or twelve-month worth of emergency fund.
3. Pay off student loans and/or debts with high interest rates
Interest on federal student loans has been temporarily suspended. You can also suspend your payments if you need to. However, if you still make payments, all of the payments will be applied to the principal of the loans. That will reduce the interest you will have to pay in the future. If you have other debts with high interest rates, you can use the stimulus check to reduce the balance of the debt and interest that you owe.
4. Invest and grow it
If you have enough emergency fund and no debt or student loans, you may want to put the money into the stock market. Since the outbreak of corona virus, the stock market has been down significantly. The market may still go lower for the next few weeks. However, it is also an opportunity to buy shares at reduced prices and boost the returns.