You may have heard that a new round of stimulus checks is coming and I wanted to put together a list of ideas of smart things that you can do with your 3rd stimulus check!
The final vote is expected today, March 10. So you could see the check hit your bank account as soon as a few days from now.
Now, let’s start putting together a plan for that 3rd stimulus today!
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Who is Getting a 3rd stimulus check?
From what I can tell right now (before the 3rd stimulus is fully approved, this is the most current information):
If you file your tax return as Single and made $75,000 Adjusted Gross Income (AGI) or less last year (2020), you will be eligible for the full $1,400 check.
The $1,400 check will be gradually phased out if you make between $75,000 and $80,000. (If you make $80,000 and above then you won’t get this stimulus check, unfortunately.)
If you are married and filing jointly, you will get $2,800 per couple if you made $150,000 AGI or less last year. Plus $1,400 per dependant.
The check will phase out for earners who made between $150,000 and $160,000 last year.
If you file as Head of Household, the limit for the full check is $112,500 AGI.
It will also phase out between $112,500 and $120,000.
Your adjusted gross income can be found on your tax return if you don’t know it off the top of your head!
If you are still unsure if you will receive a check, or if you are in that phase-out income level, check the stimulus check calculator here for help!
Smart Things to do with your 3rd Stimulus Check
Now that you hopefully have figured out if and how much of a 3rd stimulus check you will receive, let’s get into the smart ways to use your money!
1. Pay Bills
This one is a little obvious but it doesn’t hurt to mention. If you are struggling to pay your bills, make sure you put this money towards the most important bills first!
Keep your water running, your power on, or maybe even your cell phone! You don’t want to miss any opportunities that may come your way by phone!
2. Buy Something Essential that you Have been Needing
Maybe you have your bills covered, but are in need of some essentials.
Consider using some of your stimulus check on essential items like food, toilet paper, Lysol wipes (if you can find them).
Make it a priority to stock up on these essential items right now when you have the money so that if something happens to your financial situation in the near future, you will be covered!
3. Pay Down Debt
If all of your essentials are covered at the moment, you may want to put your stimulus money towards paying down debt!
Whether it is student loans or credit card debt, you could make a dent in it and get closer to living debt-free!
4. Put it in Savings
If your financial situation hasn’t been affected much by the pandemic and your bills are paid for and your essential living items are covered, then consider putting your check into a savings account.
You can put it into a high-yield savings account to beef up an emergency fund in case something does affect your financial situation in the near future.
A high yield savings account will earn interest (woohoo free money!) Even though, right now the rates are super low so it’s not a lot of free money.
An alternate option is Bask Bank where your money earns you American Airlines points for every dollar in your account!
If your job or situation is secure and you don’t foresee needing this money right now, then you could put it in a retirement account, like a Traditional IRA or Roth IRA where it can grow and make money for you over the years!
Or, if you are looking to buy a house soon, you could save it as part of your down payment!
5. Buy a Non-Essential Item you have been Wanting/Needing
Maybe you have been thinking about getting a new mattress but haven’t had the money. Or you want to upgrade your TV a little (within reason).
Then right now would be the best time to do so! This will do what it is supposed to do, stimulate the economy!
And if you can shop a small business rather than a big box store, then bonus points!
If you are beyond blessed right now with what you have, then you could donate your 3rd stimulus check to a worthy cause.
There are a lot of them out there these days. I would do some research about causes that are close to your heart and donate there!
7. Combination of the Above
With the full $1,400 you can divvy it up and use some of it for bills, some for essentials, some for savings, and some for something non-essential if you wanted! Or any combination that fits your needs!
Getting a 3rd stimulus check is beyond great news for a lot of people! Make sure you make a plan for your money so that you don’t just waste it on the first thing you see!
Also, check out my post on ways to save money on a tight budget for more savings ideas!
I know I will be putting my 3rd stimulus check to good use, do you have a plan for yours?
Let me know in the comments!