You’ve probably heard by now that there is another round of stimulus checks heading our way. The first stimulus bill was way more than just a check, and so is this bill.

But since none of us want to read about a 5,593 page bill (WHAT?!)… I will just talk about what you should do with your new stimulus check!

You can expect to receive $600 for each adult and child in your household IF:

              – You’re a single filer earning $75,000 or less or

              – You’re a joint filer earning $150,000 or less or

              – You are a Head of Household Filer earning $112,500 or less

(If you earn a little more than this, you can still expect to receive some based on the phaseout rules).

If you’re not sure how to use it, here are some ideas to put your stimulus check to work:

1. Pay off debt

Unless the debt is funding an appreciating or necessary asset (like a home), I really dislike debt. There is so much mental freedom in not having tons of monthly payments hanging over your head. Consider tackling your debt with the highest interest rate first.

2. Fund your Health Savings Account

In 2021, you can contribute up to $3,600 as an individual or $7,200 to your HSA if you have family coverage. Even if you don’t plan to spend that much money on medical bills in 2021, you should still consider fully funding your HSA! It is an AMAZING tax-advantaged account you can carry into retirement.

Once your balance is healthy enough, you can even consider investing a portion for future growth.

3. Fund your child’s 529

I have written about 529’s so many times; I might sound like a broken record. What can I say? I’m a fan. This post might convince you to be a fan too. Saving for your child’s future is as easy as setting up an automatic contribution from your checking account. I opened a 529 for my daughter this week and it was SO EASY!

4. Take care of yourself

Have you been putting off things like going to the doctor, getting a new pair of glasses, buying those supportive shoes you need, or spending the extra money on fresh fruits and veggies?


Taking care of yourself is more important than your investments. If you need the assistance, use the stimulus check to take care of yourself!

5. Give to those in need

Some people left 2020 pretty scathed. Consider giving to those in need.

I wrote about the benefits to giving in 2020 HERE. While the special tax situations don’t apply for 2021, you can still itemize your gifts.

However, the biggest advantage is the emotional and even physical health associated with generosity. Giving is linked to lower blood pressure, increased self-esteem, less depression, lower stress, longer life, and greater happiness.


This second round of stimulus checks is certain to be helpful for all who will receive it. I hope these ideas have helped you decide how to use yours!