If you’re like most people, you’ve probably got a nice $1,400 (or maybe more, if you have kids) relief check coming your way. While this is the third such check in the span of 12 months, it’s also the largest. If you’re not sure what to do with this windfall, you’ve come to the right place: let’s look at some smart ways you can spend, save or otherwise invest your relief check.
Rainy Day Fund
The most straightforward thing to do with that money is to throw it into a savings account and keep it back as a rainy day fund. You never know when something might come up. Car trouble, home appliances, unforeseen medical bills, you name it. There are a hundred ways you could suddenly be on the hook for a lot of money. The best thing for those situations is a nice reserve of “rainy day” money you’ve got stashed back in a savings account that can come to the rescue.
And, what better time than now to start that rainy day fund? With $1,400 in extra money in your budget, that leaves you plenty of room to start your savings account and be prepared for any eventuality.
Investing your money in responsible portfolios is another great way to put the windfall to use for you. This is a bit different than just saving it, as it has no guarantee of making you money back on interest. However, investing in stocks can have a great return, making it an enticing investment for many savvy money managers.
If you’ve never dipped your toes into the stock market before, don’t be scared! There are many apps that allow you to start investing right from your phone, and a lot of them offer expert advice about which investments are the safest or the most likely to net you a good return.
If you own your own home, then extra money in the budget can always be reinvested back into making your place nicer. Not only will this make you feel good, as a nice living space is just nice to live in, but it also makes your home worth that much more if you were to sell it. Homes, unlike cars, actually are investments: you can often sell a home for more than you bought it for, especially if you’ve made improvements to it since you moved in!