It’s tax return season and the senate passed a $1.9 trillion Biden Relief Plan to assist American families and businesses financially impact by the Coronavirus Pandemic. While this is the relief many have been desperately waiting on to simply sustain, this is “free money” for others. Is it though?
While many may be tempted to go on a shopping spree, I want to encourage you to think twice about what you do with your “stimmy” as the kids call it…ok maybe us adults too. My daughter sent me a meme stating, “I’d hate to sue my parents over my $1400” (source unknown) It was hilarious to me, but maybe not so much to her. What she doesn’t know is that “her” portion has been allocated to her college savings. You’re welcome.
Here are 5 alternatives you may want to consider with your extra money this year.
- Get a life insurance policy for each person in your home. As a former financial advisor, I still highly encourage everyone to create a long-term financial plan for your family. Times, especially now, are so uncertain as it relates to health and financially stability. While saving may be an option, a financial advisor can help you identify ways to preserve and grow your assets. God forbid should something happen to you or your family, a life insurance policy will at the very least, help alleviate some of the financial burden from your family during such a tough time.
- Invest. Whether it’s in stock, real estate, or even in yourself. Look into ways, you can utilize the extra money to create an additional stream of income. One way that you can invest in yourself is also by taking a course to learn a new skill, or to obtain a new certification in your field.
- Plan a family vacation. This is an area I myself am working on. We spend so much money throughout the year, but don’t always take the time to plan a vacation for the entire family. Kids grow so quickly. Take the time to create new memories.
- Donate. Now more than ever, businesses, churches, organizations, etc. are suffering from the economic crisis that has resulted from COVID-19. If you are in a position to donate, consider it. Keep in mind that your contributions may be filed as a charitable donation on your taxes next year.
- Just save it! Do you have a college plan for your kids? Do you have an emergency fund? Do you have an auto repair fund? Do you have a budget at all? Let’s just be smarter with our finances overall. Many people uses tax season as an opportunity to finally catch up on debt, and sometimes take on more. In just a few short months, they’re broke again. This isn’t to shame anyone or count your pockets. Instead, take this an opportunity to do things differently for a more prosperous year.
I hope these will create a healthy financial discussion in your home. If you need resources on how to find a financial advisor or get started on a budget, leave me a comment! I’ll be honest, even after typing this blog post, I’m still going to go and buy those cute shoes…because THAT is also a necessity. LOL
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