HOW TO SPEND YOUR STIMULUS CHECK

Since a third round of stimulus checks are going out as we speak, let's chat about some ways you can use the money to your advantage! If you're in a position right now where you don't need the money to cover basic expenses and necessities, it's easy to view it as extra spending money to go on a shopping spree with. Instead of blowing all of the money on unnecessary purchases, here are some alternatives on how to wisely spend your stimulus check to better your financial situation!

**These are my own personal opinions + is not intended to be expert financial advice. Be sure to do your own research + contact a financial advisor to discuss what works best for you.** 

1. BUILD YOUR EMERGENCY FUND - I'm a big fan of the emergency fund + having a financial safety net. With all of the uncertainties of life and the world we're currently living in, it's essential to have some extra savings available for emergencies. Most financial experts recommend building your emergency fund to $1,000 first and then over time increasing it to cover three to six months of your expenses. I always veer on the side of caution so I'm passively working on building mine up to a year's worth of expenses. This is a great opportunity to help you financially that your future self will thank you for!

**Even if you can only save a small amount, start now! Every dollar counts. It might not seem significant but small steps in the right direction is better than no action at all.** 

2. PAY OFF BAD DEBT - If you have any high-interest debt (credit cards, personal loans, etc.) it's a good idea to get rid of them as soon as possible! The rule of thumb on this one is usually anything with an interest rate of over 5%. Typically if your interest is higher than 5%, you are losing more money to interest than you could earn by investing. Use your stimulus check to help reduce or get rid of bad debt! 

3. INVEST + GROW MORE $$$ - If you have "good" debt that is under 5% or no debt, chances are you can grow + earn more by investing the money. The average return on most investments is around 10% per year so with investing you can use the money to your advantage. A few ways to invest your money is through a retirement account such as ROTH IRA/Traditional IRA, with an individual brokerage account, etc. 

**Do your research or consult a financial expert to find out what the best option for you is!**

4. TREAT YOURSELF (WITHIN REASON!) - If you know it's not realistic for you to save/invest/pay off debt using all of your stimulus money, it's okay to treat yourself A LITTLE. I'd recommend budging out a percentage of your check for spending money + then utilize the rest to your benefit via savings, investing, etc. 

**I also like to spend locally where I can so if you're planning on shopping or eating out, it's also nice to help support small businesses and restaurants in your area!** 

Are you a spender or a saver? Comment down below!

 

ALSO READ: 

Money Moves I'm Making in 2021

How I Save Money Shopping

March Money To-Do List

MARCH MONEY TO-DO LIST

It's another Money Monday here on TheKristenDiary! I have a few important goals I'd like to tackle this month relating to my money + finances. Tax season is coming to an end soon so it's a good month to cross t's and dot i's with filing taxes, retirement funds, etc. It's also a great time to reevaluate your yearly financial goals + see how things are going! If there's something on your goal list you haven't accomplished yet, look into making it happen this month! Here are a few of mine. 

**This post is not intended nor meant to be financial advice. Just sharing my own goals + things that work for me!** 

MARCH MONEY TO-DO LIST

• Boost retirement contributions for 2020 - This is my top financial goal for the next month. The cutoff date for 2020 retirement contributions is on tax day, April 15th. I've already funded some of my ROTH IRA for the year, however I plan to max out the $6,000 contribution limit. I still need to transfer over the difference within the next month. 

          **If you don't have a ROTH IRA, I highly recommend you look into opening one! It's free to open + you can add any amount of money up to $6,000. If you contribute by April 15th, you can also still get credit for the 2020 year!**

• Diversify retirement portfolio - I like to invest in mutual funds within my retirement account. I currently have investments in a few different sectors but I'd like to expand + diversify. It's on my list to research new funds in different sectors + invest in those. 

• Fund + invest brokerage account -  I finally set up a new individual brokerage (non-retirement) account! This was one of my goals for 2021 (read Money Moves I'm Making in 2021 for more). My main priority is to max out my ROTH first, however I also want to start investing in this account soon. I'm thinking of making a small initial investment this month to just get started! I also haven't decided what I want to invest in yet so I need to do some research on mutual/index funds, stocks, etc. 

• List + sell unwanted items - Over the years I've sold some of my old/unwanted things online. I'd like to clean out my closet and get rid of some things I no longer want or wear. This is a great way to make more room in your space + also make a little bit of money! 

That's a wrap! I've been really into sharing + talking more about money and finances on the blog. I think it's a great way to share information + learn how to improve. Let me know if you like these? Also if you have any topics + or ideas you'd like me to share feel free to comment below or message me on IG! You can find me @TheKristenDiary :) 

Have a great week!! 

xx,

Kristen