How to Make the Most Out of Your Stimulus Check

How to Make the Most Out of Your Stimulus Check

January 5, 2021

Tagged As: Personal

By now, many U.S. adults have received a $600 economic impact payment (a.k.a. stimulus check), or a prorated amount for those who earned more than $75,000 and less than $100,000 in 2019. If you don’t yet see the money in your bank account, or previously received a check in the mail with the last round of stimulus payments, here’s how you can check the status of your payment.

If your day-to-day financial needs are covered and you still have stimulus money in your account, you might be wondering: what’s next? Of course, the decision is yours to make, but we have a few tips to help you make the most out of your stimulus check.

Pay Down High-Interest Debt

If you’re carrying a balance on a credit card with a high-interest rate, one of the best things you can do with your stimulus check is to pay down as much of the balance as you can. As you carry debt from month to month, it compounds; meaning you’ll have to pay interest on the credit you use. If you are in credit card debt, $600 may not cover all of it. But paying down as much as you can now is a good idea to help you pay less over time.

Stimulate the Local Economy

At Hills Bank, we encourage our customers, employees, and people in our community to Shop Local every day. After the financial hardship that faced businesses in 2020, local shops and services need our support now more than ever. Using some of your $600 to buy food from a local restaurant, a gift card to a small business, or an order from a nearby store’s website can truly make a difference in the lives of business owners and their families around the Corridor – and keep the vibrant community we know and love thriving in 2021.

Build Your Emergency Fund

If you don’t have an emergency fund, consider using your economic impact payment to build one. Experts recommend having an amount of money that covers at least six months of expenses in a safe, accessible place – such as a savings account.

And while $600 is a good start, you’ll likely want more tucked away for a rainy day. That’s where Goals comes in. Goals – a feature in Hills Bank Online on your computer or smartphone – lets you set saving goals and start setting aside money automatically with regular transfers. You’ll see a visual reminder of your saving every time you log into your account. It can be motivating to see you’re reaching your emergency fund goals, and you barely have to lift a finger!