If you received your third stimulus check last month, you might be wondering how you should be using this money. Certainly, you’ll want to use it for bills or payments you’re behind on first. But did you know that you can also use your stimulus money to build wealth?
If you’re on track with your spending and caught up on your bills, now is a great time to think about wealth management in NJ. Below are five money-smart ways to use your stimulus check and position yourself for a brighter future.
1. Save for Retirement
Putting away for retirement is always a smart decision. You have until May 17th, 2021 to invest in a traditional or Roth IRA for 2020. The maximum contribution for a 2020 IRA is $6,000 (or $7,000 for those over 50). If you’ve already invested the maximum for 2020, you can start investing for 2021. The contribution limits are the same.
2. Pay Off High-Interest Debt
Interest rates are low on certain debts such as student loans, mortgages and bank savings accounts. But they can be very high on credit cards - 15% or more. You can free up a lot of cash by paying off high-interest credit cards and paying down your debts.
3. Beef Up Your Emergency Fund
Many people are still not confident in their employment. The pandemic isn’t over so it’s possible your hours could be cut or you might have to take time off to quarantine or stay home with the kids. Having extra in your emergency fund protects you if these situations occur.
4. Support a Local Business
Many small businesses have been forced to close or cut back their hours due to the pandemic. If you know of local businesses in your area that are struggling, purchase a gift card from them or use their services. This could provide them with the business they need to stay afloat.
5. Invest the Money
If you’re in a healthy financial position, you can invest the stimulus money. Talk to your financial advisor in NJ about the best ways to invest your money. They can help you spread your money wisely across different assets, including savings bonds, savings accounts, stocks and CDs.
These are some of the ways that you can use your stimulus money for good. Of course, you always want to pay your essential expenses first - mortgage payments, car payments, etc. Once all of these expenses are paid, you can start thinking about retirement planning in New Jersey. To discuss the best ways to use your IRS stimulus check, contact Leonard Financial Solutions today.
If you’re on track with your spending and caught up on your bills, now is a great time to think about wealth management in NJ. Below are five money-smart ways to use your stimulus check and position yourself for a brighter future.
1. Save for Retirement
Putting away for retirement is always a smart decision. You have until May 17th, 2021 to invest in a traditional or Roth IRA for 2020. The maximum contribution for a 2020 IRA is $6,000 (or $7,000 for those over 50). If you’ve already invested the maximum for 2020, you can start investing for 2021. The contribution limits are the same.
2. Pay Off High-Interest Debt
Interest rates are low on certain debts such as student loans, mortgages and bank savings accounts. But they can be very high on credit cards - 15% or more. You can free up a lot of cash by paying off high-interest credit cards and paying down your debts.
3. Beef Up Your Emergency Fund
Many people are still not confident in their employment. The pandemic isn’t over so it’s possible your hours could be cut or you might have to take time off to quarantine or stay home with the kids. Having extra in your emergency fund protects you if these situations occur.
4. Support a Local Business
Many small businesses have been forced to close or cut back their hours due to the pandemic. If you know of local businesses in your area that are struggling, purchase a gift card from them or use their services. This could provide them with the business they need to stay afloat.
5. Invest the Money
If you’re in a healthy financial position, you can invest the stimulus money. Talk to your financial advisor in NJ about the best ways to invest your money. They can help you spread your money wisely across different assets, including savings bonds, savings accounts, stocks and CDs.
These are some of the ways that you can use your stimulus money for good. Of course, you always want to pay your essential expenses first - mortgage payments, car payments, etc. Once all of these expenses are paid, you can start thinking about retirement planning in New Jersey. To discuss the best ways to use your IRS stimulus check, contact Leonard Financial Solutions today.
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