Most people are facing financial challenges because of COVID. The government is doing its best to help impacted citizens by providing them relief funds. They are providing this relief fund to all eligible citizens. Many of them will use this money to fulfill their daily needs, clear accumulated bills. Some people may be already having money for necessities, and this stimulus check comes as add-on money. Utilizing these funds cautiously; is essential in these difficult times where we can’t ignore creating an emergency fund and retirement funds. We can consider our budget and carefully create a plan to utilize this money. Let’s discuss various ways we can use our stimulus money-


Pay high-interest debts

Consider paying high-interest debt like pending credit card bills or any personal loan. These might be putting a hole in your pocket. A home loan should be next on this list.

Save and invest

We need to develop a save and invest mindset for tackling our financial needs.


Build Emergency Fund

You might be having enough to survive few more weeks, but no one knows how much time will it take everything to come back to normal with the second wave of coronavirus. You can consider creating an emergency fund that will help you to get going for a long. It should be done on priority if you feel you may lose your job soon.


Build Retirement Fund

A stimulus check may be extra money that you do not want to use. In this case, you can add it as your contribution to your retirement fund.


Invest in Equity

Every day we are witnessing new opportunities in the stock market. Many stocks are either corrected up to 30% or undervalue. You should invest some amount in the equity market for the long term via direct stock purchase or mutual funds. Please consider doing your research or take help from your financial advisers for it.


Lifestyle Improvement

You may have more than enough to take care of your financial needs. You can also invest some amount in your lifestyle change. It may give a little boost to your overall mental health, which is most affected by this pandemic. We are now spending most of our time at home. You can use some funds to fix wear and tear around the house. Most companies are encouraging work from home. You may like to buy some accessories related to it or remodel your house to use your space efficiently.


Help the needy

We need to rescue ourselves first, but as human beings, we should consider helping others who are struggling for necessities like food and shelter. Especially homeless people may not get this stimulus money because of the eligibility criteria. Also, low-income workers may not be able to fulfill their financial obligations with their stimulus money. We should help these people directly or by fundraisers as much as we can.