How We’re Spending Our Stimulus $$$

One of the pillars of a successful budget is giving every dollar a purpose. Without a purpose, money can disappear quickly and it’s harder to tell where exactly it went. We just got our $3,900 stimulus check so here’s how we’re implementing this budgeting strategy.

I want to acknowledge that there are many people who need this money to cover their basic needs right now and those needs should always be prioritized. Mr. Doughmaker and I are very fortunate to still have full-time employment amidst the pandemic. While we feel we are not in a position to “need” these funds immediately, we also want to make the most of this opportunity. Here’s the breakdown:

• $900 – Set aside in our savings/emergency fund. While we have jobs today, there is uncertainty for all businesses right now so it seems prudent to add to our savings account. In the event we lose our employment or if we end up needing medical care, we’ll be able to draw on this. If we don’t need this in the near term, it will be allocated to a separate long-term financial goal.
• $1,200 – Prior Year contributions to IRAs are now extended to July 15th. We maxed out our Roth IRAs for 2019 while keeping a max out schedule for 2020 as well.
• $500 – Donated to our favorite charity. We wanted to find a way to get some of these funds to the people who do need it. The charity we chose is Mom’s House of Lancaster, which supports single parents pursuing their educations by providing high-quality childcare services for free.
• $600 – Purchased Disney stock to be gifted to our children. We chose to invest in Disney for three reasons. First, if you haven’t noticed, the stock market is on sale. Second, we wanted to invest the money in a “recession-proof” business. There are no guarantees in the stock market, but based on their long history, we felt this seemed like a wise investment. Last, our kids like Disney. Mr. Doughmaker and I want to invest is companies that we feel good about – for us, Disney ticked that box.
• $500 – Tips for essential workers who we know personally.
• $200 – Mr. and Mrs. Doughmaker’s discretionary funds. There are a few items we have been meaning to buy for the house.

Other good uses for these funds:

• Pay ahead on your mortgage, rent or utilities to ease your mind for a few months.
• Make larger payments on your debt. Using it for the highest interest rate loans first is the best way to get the biggest bang for your (literal) buck.
• Make the money stretch further by trying to meal plan for multiple weeks at a time. See our previous post on that topic: http://www.thedoughmakers.com/2020/03/29/monthly-meal-plans-our-favorite-budgeting-tip/
• If you’re still unsure of how you want to use it, move the funds into a savings account until you have a plan. Separating it from your checking account will make it harder to spend it without realizing.

Feel free to share with us how you plan to use your stimulus funds.