How best to spend your stimulus check depends entirely on your economic situation The stimulus checks you receive as a result of the government's $2 trillion stimulus package are yours to spend as you see fit

If you have pressing necessities or people you need to support, the best use of your stimulus check is to meet those needs until Stimulus Check 2 is voted on However, if they are fortunate enough to have a steady income at this point, they may be looking for ways to best spend the $1,200 provided by the IRS, even if it is below the eligibility threshold or less than their usual income

Of course, you are free to spend the check any way you want Put it into savings Never a bad idea Donate it Charity Make a purchase If you want to, of course

But if you're looking for guidance, financial experts suggest the best uses for the stimulus package Most of them recommend that the stimulus be used either for emergency funds or to reduce debt

Perhaps we can do both Or perhaps some do not need to do either, but want to use it in a way that will give back to their future selves and to people in the present

Those still waiting for their stimulus checks can use the IRS Get My Payment app to track the progress of their money in the system They can also use the USPS's Informed Delivery service to know exactly when their stimulus checks arrived in their mailboxes

According to financial advisors (via MarketWatch and Wirecutter), here are some ways to use your stimulus checks wisely

Some analysts predict that even if your finances were sound today, more jobs would be lost

In a recent statement, the US Private Sector Employment Quality Index said it expects up to 37 million positions to be vulnerable Although the pace of job losses has slowed, 33 million people have filed for unemployment since the pandemic began

Wells Fargo recommends always setting aside at least three to six months of average expenses as an emergency fund If you don't have enough savings to sustain you in the event of an unforeseen event, it may be time to add to your contingency account

Whether you increase your savings with a stimulus check or set aside enough money to pay your rent, mortgage, and utilities, it is a practice worth adopting

If the savings account is well enough funded to meet unexpected expenses, the stimulus checks can be used to cut down on incurred debt It would be better to deal first with high-interest debts, which become more difficult to repay the longer the debt is incurred

The US Securities and Exchange Commission recognizes that credit card interest rates are particularly high and make debt repayment difficult The Commission states that the "wisest thing" you can do is to pay off the balance in full

But should you pay off your debt instead of saving? That depends on your situation If your debt is less than the amount of your stimulus check, consider splitting your payments Reducing your debt now will add to your credit score rather than leaving the amount you owe untouched, especially if you are facing high interest rates

However, if you are facing low interest rate debt, increasing your savings may be more beneficial in the short term In the midst of the enormous uncertainty caused by a pandemic, having an emergency fund may help you sleep at night

The only time it makes sense to invest a stimulus check is if your savings account is flush and you don't owe anyone anything If there is a chance that you will need $1,200 in the near future, hold off on investing it While it may be possible to grow the value of a stimulus check over time with a diversified portfolio, it won't happen in a year

According to Acorns, investing in the stock market now, when stock prices are low, is a wise choice While the current market may seem unpredictable, based on past trends, prices are likely to rise again

If you have no investment experience, do your research beforehand The basic rule when creating an investment portfolio is to diversify risk and diversify stocks

Certain apps can also help you take your first steps into investing: Stash offers an educational approach for beginners, while Wealthfront is a well-rounded, low-maintenance investment tool

In other words, you have plenty of savings, no debt, and don't feel the need to invest (or trust the volatility of the stock market)

Now, if you don't want to see your favorite local business close, you might want to look into ways to support them You could purchase a gift card and use it when a non-essential store can safely reopen Also consider purchasing merchandise or donating to a company-specific Covid 19 relief fund

You could also split the stimulus check with someone who would normally pay, like a nanny or housekeeper Because of social distance protocols, you may not be using their services, but your business is contributing to their income

The coronavirus pandemic has affected hundreds of millions of people across the country Many are facing hardships, some worse than others If you can, you might want to consider donating your stimulus checks to those who need them more

Whether you want to help parents who cannot afford to buy food for their children while school is out, or support the families of front-line health care workers, there are charities that could benefit from the stimulus package

Always do your research before choosing a charity you want to support; Charity Watch provides background information and trust ratings of popular beneficiaries You can also use it to find lesser-known charities that resonate with you After all, this is your stimulus check