It looks like within a few months many of those in the United States will have received up to about $3,200 in government economic stimulus checks (give or take depending on income and other factors; as calculated by the $1,200 stimulus check in early 2020, the recent $600 stimulus check, and the additional expected upcoming $1,400 stimulus check if passed). People in other countries, depending on nation, are also likely receiving money from the government to compensate for the economic devastation during the pandemic.
For many people this check is likely to be used for necessities such as rent, food, car costs, or an emergency savings fund. Yet many others are likely in a position where they have enough in funds for those essential items and are thinking about what they can possibly use that extra money on. Here are some ideas:
1) Donate to Charity: There are a lot of people out there in need right now and even a bit of change can make a real difference in people's lives. We've all seen the news about the endless lines of cars at the food banks waiting for meals for themselves and their families. Recently in the US there's also been some tax breaks created by charitable donations. It's worth looking at these to see if they might apply.
2) Investments: It never hurts to add more money to your retirement accounts or personal taxable investment accounts when you can. As always, understand the risks involved and know the kind of investments you are getting into, your risk tolerance, your investment horizon, and any fees involved.
3) Speculation: This is in a different category than investing because it's where you are ready and willing to lose everything and lose it quick. I'm talking about options, brand new altcoins, and other kinds of extremely volatile yet also potentially extremely high-reward considerations. Tread carefully and beware of pumps.
4) Travel: COVID has put the entire travel industry under great strain. However for those who are in a condition that is able to travel it means that there are incredible bargains on every part of the travel supply chain - airfare, hotels, trains, buses, etc. You can have an incredible trip at a greatly reduced price. However keep track of any travel or testing restrictions for the location you are traveling to (including as they change) and know that when you arrive to your dream destination a lot of places may be closed or substantially restricted.
5) Treat Yourself: The stimulus money is also meant to support other industries besides just the essentials, as many businesses and sectors have suffered greatly during this crisis. Use it to buy yourself something, whether a product or experience, fun and exciting in these tough times. You'll be helping the economy and making yourself happy at the same time!
Happy spending out there!