If so, Dave Ramsey has a message for you: You really dont need that check.
5 Life-Changing Ways to Spend Your Stimulus Check
The following five strategies wont change your life overnight.
They wont give you the instant gratification youd get from making a big purchase.
This post refers to stimulus checks issued in March 2021. For the most up-to-date info, check out ourrecent tax articles.
Pay Down Credit Card Debt
The average credit card costs you more than 16% each year in interest.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
If you made a one-time $1,400 payment toward yourcredit card debt, youd lower your monthly minimum.
Lets suppose you have a $5,000 balance on a card with a 16% APR.
Your monthly minimum payment is 3% of your balance, or $150.
You reduce your balance to $3,600, so your 3% minimum payment drops to $108.
You keep paying $150.
That means an extra $42 going toward the principal, not the interest.
Youd be debt-free 15 months sooner and save nearly $900 on interest.
You then have an extra $150 freed up to put toward your other financial goals.
Did you know?
Establish an Emergency Fund
You never realize just how life-changing anemergency fundis until you actually have an emergency.
Will $22,000 change your life?
Probably not, though it could certainly make for a niceretirement savingsboost.
But the real magic happens if it kickstarts a lifelong investing habit.
You should also have an emergency fund before you invest.
The stock market can be volatile in the short term.
But in most real estate markets across the U.S., its a highly competitivesellers market.
Boost Your HSA Contributions
If you have ahealth savings account, you also have a high-deductible health plan.
In 2021, the minimum deductible under these plans is $1,400 for individuals or $2,800 for families.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
Balance Transfer = Credit Card Cheat Code
