Don’t Think, Just Do This with Your $600 Federal Stimulus Check

Americans with adjusted gross incomes equal to or less than $75,000 for individuals and $150,000 for married couples will be receiving a $600 per person federal stimulus payment – if you haven’t received it already – as a result of Congress’ latest Covid relief/stimulus legislation.

While not as much as the $1,200 checks that were provided earlier in 2020, it’s still a decent amount of “free money.”

And for some, those who remain unemployed, or under-employed, the money is a much-needed lifeline considering Congress left many in a financial pinch in order to play political games this past summer and early fall.

If you don’t fall into the under/unemployed category, however, let me offer a suggestion for this $600 windfall.

First, I acknowledge that pretty much anyone can use that money for something. Whether it’s a household project, car repair, or just something fun, it’s very easy to blow through that $600 – more if you’re in a multi-person household – in no time.

But when it comes to “found money” as this payment could be considered, the prudent step is to use at least some to better your financial situation.

And for most Americans saving for retirement falls into that financial betterment category.

So, here’s my suggestion.

Do This with Your $600

If you have an Individual Retirement Account already set up, put $400 of the $600 into your account. Now. Before you even have a chance to think of other ways to spend it.

If you don’t already have an IRA, deposit the $400 in a separate, fee-free savings account. We list a few high interest savings accounts (although I hesitate to use that term these days considering the ridiculously low interest rates being offered) that may work for you on our High Yield Savings Accounts page.

With $100 of the remaining $200, spend it at a local small business or restaurant.

Small businesses and independently-owned restaurants are at the top of the list for hardest hit sectors by this Covid pandemic. They need financial help to make it to the other side of this mess. A couple books bought, a few meals purchased or utilization of their service gets them that much closer to staying in business.

And finally, use the last $100 on yourself. Pamper yourself with something frivolous – or not – that will make you happy. The past year has been difficult for everyone. For most, spending money is a positive experience, especially when it’s on something you really want. We all need a little more positivity in our lives right now.

But the key to this recommendation is to put a large chunk of this unexpected government payment toward your future in the form of a retirement account or savings account contribution.

Wrap Up

Many Americans are receiving a $600 payment from the federal government.

If you don’t actually need the money for necessities, consider following my suggested actions to better not only your life – now and in the future – but someone else’s too.

money image courtesy of nuchylee at freedigitalphotos.net