For individuals who have already lost their jobs because of COVID-19 and its effects on the economy, the stimulus money can be a temporary lifeline to assist with getting finances back on track. The check should be used immediately to pay things like rent, mortgages, utility bills, and more.
An emergency fund is an amount of money you set aside to cover unexpected expenses or to cover necessary expenses if there are significant changes to your income. How much you need in your emergency fund is unique to you, your family, and your circumstances.
A recent poll showed that only 25% of U.S. adults have emergency savings. When things like the COVID-19 arise, it makes you aware of why having an emergency fund is so vital for our financial health!
Most of the time, emergency funds are built slowly as excess funds from a budget are set aside and saved. If you don’t have an emergency fund, the stimulus check creates an excellent opportunity to start one as it can create a large portion, or in some instances a fully-funded emergency fund at one time.
At First Southern National Bank, we’d love to see all of our customers and team members live debt-free, when possible. For those who may not need the stimulus money immediately, the checks could be an opportunity to pay down debt and to minimize the amount of interest accrued.
With the additional income that some individuals will receive, this could be a good time to see if your budget has room to pay ahead on some bills. With the future more uncertain than normal, it could be an opportunity to pay forward your rent, mortgage, utility bill, or another bill if you become affected financially due to the COVID-19 down the road.
As “nonessential businesses” were forced to close or enforce restrictions throughout Kentucky, supporting local businesses that are hurting from the impact of COVID-19 has never been more important. For example, while spending $40 at a local restaurant might not seem like a big deal, it can make a meaningful difference if more people choose to support that restaurant.
Generosity is one of First Southern National Bank’s core values. Giving is huge for us! We believe in sharing our time, our knowledge, and our resources with others. If you and your family don’t immediately need the money, many charities and organizations have felt the financial impact of the pandemic. Consider giving to a church or families in need directly. If you aren’t already and can find a way, consider assisting in ways that are not necessarily monetary, while still practicing “social distancing.”