Smith 
Have you recently found a $600 stimulus check in your bank account and wondered how best to use it? Well, you’re not alone! Many people are thinking about the most effective ways to spend this unexpected money. While you could go on a shopping spree, there are smarter ways to make that $600 work for you, depending on your financial needs. Here are some ideas to consider:
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Pay Off Overdue Bills
If you’ve fallen behind on bills, now is a great time to catch up. Focus first on essential bills like your housing payment. Although there’s a current moratorium on many evictions and foreclosures, it’s wise to stay current to avoid future troubles. If your housing is secure, prioritize utility bills like electricity, heat, and water. Paying off overdue bills can improve your credit score, as late payments can negatively impact it for up to seven years. If your stimulus check doesn’t cover all your debts, speak with your landlord or mortgage lender about creating a repayment plan or seek local support services. -
Start an Emergency Fund
If you don’t have an emergency fund, or if yours has been depleted, now might be a perfect time to build it up. An emergency fund typically covers three to six months of expenses. With the ongoing uncertainties due to the pandemic, having an emergency fund can provide some financial security. -
Take Care of Any Repairs or Healthcare You’ve Put Off
It’s easy to delay maintenance or healthcare when money is tight. However, putting off necessary repairs or medical visits can lead to bigger expenses later. If you’re caught up on bills and have an emergency fund, consider using your check for these needs. This could include car maintenance, home repairs, or medical check-ups for you and your family. -
Pay Down High-Interest Debt
High-interest debt can be a significant financial burden. While it may not be an emergency for everyone, paying down debts with high interest rates can help you move forward financially. Even a $600 payment can make a difference. Use a debt calculator to see how much this payment can help reduce your debt. -
Spend It With Local Small Businesses
Using your stimulus check to support local small businesses can have a positive impact on your community. Instead of spending on large online retailers, consider shopping at local farmers’ markets, restaurants, grocery stores, independent bookstores, and other small businesses. Buying locally helps stimulate the economy by supporting business owners, their employees, and their suppliers. -
Donate It
If you’re financially secure, donating your stimulus check is another meaningful option. Many organizations, especially local COVID relief charities, are in need of funds to continue their important work. Donating can help strengthen your community, which benefits everyone in the long run.
What If I Haven’t Gotten My Check Yet?
The $600 stimulus checks were officially paid out on January 4, 2021. If you haven’t received yours yet, reasons could include changing banks or moving recently, or having a higher income in 2019. Use the IRS Get My Payment tool to track your payment. If necessary, request a payment trace or claim your stimulus payment as a tax credit when you file your 2020 tax return. To qualify for the payment, you must meet certain income limits and not be claimed as a dependent by someone else.
Final Thoughts on How to Make the Most of Your $600 Stimulus Check
Your $600 stimulus check can be a valuable resource during these tough times. The best way to use it depends on your unique financial situation. Prioritize overdue bills to protect your shelter and improve your credit score. Consider building an emergency fund for future security. Take care of essential repairs or medical needs you’ve delayed. Reducing high-interest debt can relieve financial stress. Supporting local businesses and donating to charity can positively impact your community. If you haven’t received your check, use available tools to track it or claim it as a tax credit. Making thoughtful financial choices today can help you navigate these uncertain times.
FAQ
- There are no restrictions on how you use your stimulus check. You can save it or spend it as you see fit.
- How you choose to spend your stimulus check should depend on what would be most helpful for your situation, such as catching up on bills or repairs.
- Yes, if you meet the requirements but haven’t received your stimulus check, you can claim it as the Recovery Rebate Credit when you file your 2020 tax return.
