Like 30 million other people, you received the latest round of stimulus payments; here are 5 ways to spend that money wisely.
1. Pay Down Your Credit Card
If you have any high-interest credit cards, then this is the surest way to get the best ROI on your money. Debt works harder than anyone I know. It compounds 24 days a day, 365 days a year – and you are writing the check.
2. Pay Down [Private] Student Loans
No, Biden can’t cancel private loans. Student loans are the 1st cousin of your credit card debt, and they work overtime too. If you are holding private student loans, this is the 2nd best way to get a risk-free return on your investment. Plus, you’ll feel great knocking down that balance a little bit.
3. Invest In An Index Fund
Please, don’t drop $1,400 into a meme stock. Yes, it is boring. No, you won’t get rich overnight. But, Index investing is Warren Buffet suggests for most people, and 100% of my 401K and most of my brokerage account in an index fund.
4. Start or Contribute To An Emergency Fund
You’ll lose money doing this, taking into account inflation, but hey, at least you didn’t spend your emergency fund on your Tulum trip.
5. Help someone less fortunate
This is a hard time for many individuals and families. If you can afford it, consider helping others who have fallen on hard times.
How did you use your stimulus check? Comment below and let me know how you put it to use.
Founder and author of realworldpersonalfinance.com [RWPF]. A blog dedicated to personal finance for millennials that want its readers to know they can be perfectly imperfect. Over the past 10 years, his net worth went from -$108,000 to $380,000, mainly through debt reduction, living below his means, and navigating the corporate world. There have been mistakes along the way, and he is still learning too. He's here to offer honest opinions and real insight that's based on his own personal experiences. Current Recommendations:1)Save Major Money By Switching Your Cell Phone Service To Mint Mobile Mint Mobile plans start at $15 a month. I have the unlimited data plan for $30 a month. Major savings compared to any bigbox carrer! 2)Have The Flexibility To Amend Your Life Insurance With Ladder What makes Ladder so special is the ability to increase or decrease your coverage as needed. They call this “Laddering,” and they’re the only ones in the insurance space offering a feature like this. If your circumstances are likely to change, for example, buy a house or start a family, then having the flexibility to amend your policy is a huge plus 3)Become Your Family's COO with Trustworthy Trustworthy makes it easy to organize important family information that’s easily accessible so you and your loved ones can be prepared for whatever may happen. Plus, all your information is protected at all times with bank-level 256-bit encryption.