It’s been a while since I last blogged! With quarantine giving me extra time, I’ve decided to get back into the habit of journaling and blogging in a conversational way to keep both you and me entertained. You might feel like you’ve missed out on a lot—don’t worry, I’ll catch you up as we go. In the meantime, stay safe and make sure to wash your hands!
We’ve now hit Day 52. It’s almost mid-May, and by now, most people in the U.S. have received their stimulus checks. That’s $1,200 per person and $500 per child under 17 to help those facing reduced hours or unemployment. Plus, there’s the extra $600 per week for unemployment. If you were earning minimum wage, this unemployment boost means you’re now getting about $15 per hour, without having to spend on childcare or gas.
With tax refunds coming in about a month ago, many of you might have some extra cash on hand. So, what should you do with it?
First off, tackle high-interest debt if you have any. My credit card company in the U.K. just canceled a card I hadn’t used in ages, and it’ll be tough to get new credit since I don’t live there anymore. So, be mindful of your credit.
Next, take care of your bills. Just because the government said you can delay rent payments, doesn’t mean the obligation goes away. You’ll still owe that rent. In places like San Diego, where a one-bedroom apartment costs around $2,000 a month, skipping five months means you’ll need to come up with $10,000 eventually. So, pay your bills on time, or even prepay them, to avoid spending the money elsewhere.
If you have extra cash after paying off debts and bills, consider investing. I won’t give you stock tips or tell you where to buy real estate, but building a financial cushion for tough times is always smart.
Lastly, think about helping others. While the stimulus check distribution is fair in theory, some people need it more than others. Food banks are struggling to meet demand, making them a great place to start if you want to give back. I’ve been sending funds to Guatemala to help provide food for villagers, and we’ve raised over $500 thanks to generous readers!
Reach out to community leaders, like your mayor or pastor, to find out where your contributions could make the most impact. Even in wealthy communities like my own, Coronado Island, there are neighbors in need. For example, I walk the dog for my elderly neighbor who can’t go out, and some local kids are helping older residents set up Zoom accounts to keep in touch with loved ones.
Deciding whether to spend your stimulus check or save it is a personal choice. If you’re more of a saver but still want to help, consider buying gift cards for your favorite local shops. This way, the shops get your support without you buying things you don’t need right now.
I also like the idea of providing work. My neighbors are hiring kids for yard work, and although the projects I’m funding in Guatemala aren’t urgent, the workers there need the income.
If you can spare your stimulus check, find a way to use it for good!