What To Do With My Stimulus Check? 10 Ways To Use Payment

We are in the first few weeks of 2021, which may be another eventful year ahead. One thing that’s taking place is the second round of government relief payments. These are stimulus checks (supposedly) related to the COVID-19 outbreak. If you’ve asked yourself, “What to do with my stimulus check?” you want to know which options are best in your situation.

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What to do with my stimulus check?

If you’ve been following current events in the last year, there have been talks of stimulus payments for some time. Early last year, the U.S. government delivered the first round of stimulus checks to qualified taxpayers. The first round included individual $1200 checks, which ended up being a slow process. The second time will likely be no different than the first time.

For the second round, it was an ongoing process for the last several months. At the tail end of 2020, a bill was signed into law to distribute $600 checks to individuals. There is a possibility that the checks might be higher. If that’s not the case, more stimulus checks might come later this year.

What qualifies you for a stimulus check?

If you filed a 2019 U.S. tax return, you might be eligible to receive a stimulus check. Not everyone will be receiving checks from the government, particularly those with higher incomes. The approximate numbers are as followed:

  • Individuals making less than $99,000 per year
  • Couples earning less than $198,000 per year

If you fall under these categories, you’ll likely be getting a stimulus check from the government. You’ll most likely get it in the form of direct deposit- it would be the bank account you used to get your previous tax return. If not, then you’ll receive your check in the mail.

What can I spend my stimulus check in?

So, what can you do with your stimulus check when it arrives? Unfortunately, most people will want to spend it on stuff they don’t need. Then again, some people will use it for expenses. You don’t have to spend it right away; instead, use your stimulus check for better purposes.

In this article, I will list out ten different ways you can use your stimulus check. Rather than spending it on consumption, you’ll have a better understanding of where that money goes in your best favor.

What to do with my stimulus check?

Ten ways to use your stimulus payment

1.) Paying the bills

What to do with my stimulus check?- Calculator and cash

If you’re like most people struggling to pay your expenses, the stimulus check can help pay the bills piling up. Many people who are not working are finding ways to pay their bills, but some aren’t able to. Therefore, they turn to their savings or unemployment payments.

If you’ve meant to pay off your electricity bills the last few months, the stimulus check might help you out. It may not be enough to cover all of your expenses, but maybe pay off some bills. A $600 check is not enough for most people to pay a month’s worth of rent.

2.) Paying off debt

What to do with my stimulus check?-Debt


If you’re in a mountain load of debt, paying off a couple of hundred dollars in debt might help in the short run. Whether that’s credit card debt, student loans, or car loans, it’s good to pay off some debt. Especially if you’re deep into debt, there’s no better time to pay some or all of it than right now.

3.) Starting an emergency fund

When life throws you a curveball for those “s–t hits the fan” moments, having some money to pay for an emergency helps. By building an emergency fund, you’re putting yourself in a better situation if something unexpected happens. Even if it’s putting a little money aside each month, it can add up over time.

Not all people have rainy day funds set aside, and that’s unfortunate. It creates more stress and frustration in anyone’s financial situation. If it’s putting aside $25 or $100 each month, that rainy day fund will grow in no time. If you want to put some of your stimulus payment into an emergency fund, more power to you.

4.) Using it to pay your tax return

What to do with my stimulus check?-Taxes


Not everyone loves paying their taxes (even myself included), but that’s how today’s system functions. So if you’re scrambling to find money to pay that pesky tax return, your stimulus payment can help out. If you don’t want to use up your stimulus check immediately, why not use some of it to file your tax return?

5.) Donating to first responders in your community

If you want to help out your community in a positive manner, why not donate it to local organizations? For example, you can donate some money to your local fire department or nearby hospital. Especially when it comes to first responders, these essential workers need more support than ever.

Another thing you can do is donate items such as school supplies. Or more common these days can be personal protective equipment (PPE). If you care about other people in your community, donating these types of supplies can benefit you. Some clinics or hospitals may not have enough PPE supplies, so you’d be doing your local organizations a favor.

6.) Donate to your favorite charity or organization

What to do with my stimulus check?- Donations


A lot of people are gracious enough to donate money to charity. If there’s a cause or two you believe in, why not give some money away to your favorite charity? There are plenty of charities that go fighting for good reasons. For example, causes include childhood hunger, cancer, poverty, and so forth.

If you donate to charity, you might be eligible for tax deductions for the following year. For example, many organizations will send you a reference letter to save for your tax returns. By going back to that letter, you’ll be able to maximize your tax return when it’s time to file.

7.) Getting some exercise equipment 

If you’ve been working out at home these days, some exercise equipment might be useful. Maybe you can get some new weights, or even get that treadmill you’ve wanted for a long time. A one-time stimulus payment may not be enough to buy a treadmill today. However, it can pay some of the cost if you’ve previously saved up money for it.

As more people spend more time at home, having the right equipment can help keep you in the best shape. So if you’ve been thinking about doing that, don’t put off your health for too long.

8.) Investing in the markets

What to do with my stimulus check?-Charts

If you’ve wanted to invest or trade in the financial markets, now might be a good time to learn how markets function. Maybe invest some money into commodities, stocks, or bonds. There are plenty of funds you can invest in, with the potential to grow your wealth in the long-run.

Keep in mind if you’re going down this path, make sure you understand the risks involved. I say that because there’s a good chance you might lose money in the market. Nothing is guaranteed, so be well-informed and prepared for unexpected market volatility.

9.) Saving for retirement

If you’re unsure what to do with your stimulus check, you can stack it away for retirement. If you have an individual retirement account (IRA), it doesn’t hurt to contribute some money to that type of account. It might be one of the best options if you don’t want to waste your stimulus check right now.

10.) Investing in yourself

The best option that you can do is to invest in yourself. If you want to use your stimulus check to improve your human capital, it can be a great decision. Whether that’s learning a new skill or starting that side hustle, use that investment wisely to make yourself a valuable individual.

By investing in yourself, it could be self-education. For example, maybe signing up for a course or a platform that helps you become a better marketer. If you’ve wanted to start that blog for some time, maybe join a platform that will help you go in that direction.

As a matter of, there’s one platform I use to build out my blogs. Not only that, but I’m invested in continuing education through this platform. It’s one of the best places to grow my knowledge and current skillset.

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Wrap-Up

There are many ways to use your stimulus check for good reasons. Rather than spending it on luxuries, why not use it to save or invest in things you understand. But if that’s not for you, you can always donate it to causes you believe in. If it’s childhood hunger or poverty, donate some of your money to charities you support.

As emphasized earlier, one of the best ways to use your stimulus check is to invest in yourself. If you want to learn new skills and become more valuable to the world, that can be an excellent investment in your future. It’s something I can’t emphasize enough, and I’ll continue to write about it for a long time.

Once again, if you want to start a blog or side hustle, please check out the platform I use to build my online businesses. Sign up for a free trial. If you like what you see, sign up for a premium membership. 

Your stimulus check is more than enough to pay for a yearly membership. So why not invest your time over the next year to build a successful business? If you agree with me, you’re going to make a great decision. 

Also, I got your back, and I’ll support you alongside your journey. Take action today!

I’ll end this post by listing this week’s word, quote, and principle to reflect on.

Word of the Week (1/11-1/17/21)

  • Cantankerous – bad tempered and uncooperative.

Quote of the Week

  • There can be no defense like elaborate courtesy. – E.V. Lucas

Life Principle of the Week

  • Character – What you are/do when no one is watching .

Which one of these approaches do you think is best to use your stimulus check? What will you do with your stimulus check when it arrives?

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