With another stimulus check in your pocket, spending the money on anything you want may seem tempting.

However, it's important to consider your responsibilities and to think about how to make the most of your stimulus check rather than spending it recklessly. Take your budget, your monthly expenses, your family, and your future into consideration and spend the money wisely.

Don't Buy Things with Recurring Costs

Just because you have extra spending money now doesn't necessarily mean you can afford new items with monthly payments, such as a new car. Unless the stimulus check helps you put a down payment on something to lower your monthly payments enough to fit into your normal budget, don't spend money on it. If you can't afford the monthly payments after using the stimulus money, you may put yourself in more debt than the item is worth.

Purchase and Pay Off the Necessities First

You may not get enough money in your stimulus check to pay back all the costs you've accrued during the course of the pandemic, but you should at least try to put a small dent in them. Put aside some money for things such as rent and utilities, but make sure to keep some for living essentials, such as groceries.

Unfortunately, the stimulus check probably doesn't offer enough money to allow you to change a low-budget living situation; for now, continue living as you have been until your financial situation changes permanently.

Consider Your Student Loans

Currently, federal student loans are on an administrative forbearance. However, as the new year begins, the lifting of the forbearance nears and your usual student loan payments may resume.

If you can afford it, consider setting aside the stimulus check for student loan repayments. Keep an eye on what your student loan lender decides to do with their loans, whether it's the government or a private lender. The news may inform you of whether your student loans can accept your stimulus check or not.

Even if the student loan administrative forbearance continues, it's wise to set aside money to pay off some of the debt while the interest rate is 0%. If you can afford to pay off your outstanding interest or student debt and still afford your living expenses, there's no better time than the present to tackle a small portion of your student debt.

Put the Money into Savings

Sometimes the wisest thing you can do with money is nothing at all. As long as you can afford your daily expenses, making the most of your stimulus check may involve saving it for a future emergency. You can take the check back out of your savings and use it on whatever you want after the looming threat of disaster has passed—once you're in a more stable situation, you'll be able to make a wiser financial decision.

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