Many people have recently received a lump sum from the second round of stimulus payments. While some homeowners are using the money to catch up on bills and put groceries on the table, some make other plans for the payment instead. If you’re like most Americans, your regular income comes from a weekly or monthly paycheck, one that may be on hold at the moment, so when you get a lump sum of money, you’re torn as to what the best thing to spend it on is.
From taking a course at the local business school to getting a camera to take high-quality photos to sell online or store in your Google photos dropbox, and from doing a little home remodeling to saving the money for a rainy day, the opportunities for what to do with a lump sum of money are endless. If your unsure or it’s under debate with your significant other as to the best way to spend that lump sum, then read on below for a few of the smart ways to spend your money this go-round.
1. Home Improvements
For many homeowners, a lump sum of money is the perfect opportunity to schedule some much-needed home improvements. For example, if you’re having problems with cold drafts coming through your windows and doors or your electric bills are through the roof because your windows are old, single pane, and not energy-efficient at all, then you may want to call in a reputable crew of replacement window installers to take care of your windows for you. If you can’t afford to replace all of the windows in your home with new windows, then try one replacement window at a time until they are all replaced.
Make sure that you do your research and find a reputable window installer for your replacement window needs, however, as you don’t want to spend your money on shoddy windows. Other home improvements to consider are roof replacements and gutter installation as well.
2. Go back to school.
If you have always dreamed of going back to school to complete your MBA, then taking a lump sum of money, such as your stimulus check, can be a great way to do it. For many people going to a business, school is a dream, and an interview with the right consultant can guarantee you’re going to get into your dream school as well.
If you’re having problems deciding where you want to go to school or even deciding if going to school to get your MBA is the right choice for you, then you should make an appointment with an MBA admissions counseling consultant to get the advice you need, and so that the consultant can point you in the direction of your dream school.
If you’re having problems getting into your target program at your dream school, then the MBA consultant can help you there as well. Going back to school, no matter what field of study you choose is a productive way to spend a lump sum of money, and you’ll make your money back two-fold once you’ve graduated and branched out on your own.
3. Start your own business doing something you love.
One way to make your lump sum of money work for you is by starting your own business doing something you love with the money itself. For example, if you love taking pictures, why not take your stimulus payment and invest in a high-quality camera and the equipment to start your own photography business.
One of the things you should invest in for your photography business is a good photos online storage system. A good system will come with a dropbox to store your Google photos, photos that you take for your clients, and even photos that you want to share with family and friends on social media. You want cloud storage with unlimited storage and lets you upload to dropbox from any mobile device, home computer, laptop, or digital camera. You want reliability with the mobile app you download, a secure cloud folder, and other assurances that your photos will not be lost when you put them in cloud storage instead of downloading them to your hard drive. Google Drive is the perfect place to store photos, but you still need a backup as well.
Starting your own photography business with cloud storage and a good mobile app included is a great way to spend that lump sum of money and make money off your investment.
4. Pay down your debt and save for a rainy day.
If you’ve been struggling and gotten behind on your bills before that lump sum of money arrives, you should probably take the money and pay up your bills, then try to pay down any debt you have remaining. One of the smartest things to do with a lump sum of money is to pay off any credit card bills or outstanding loans that you might owe. It’s also a good idea to pay ahead on any monthly bills you can afford to get ahead on.
It’s also estimated that you should have no less than $1,000 on a rainy day/emergency fund at all times. If you can, try to put at least $1,000 in that fund and add to it with every paycheck. If the Covid-19 virus and lockdowns have taught Americans anything, it should be that you never know when disaster is going to strike. Having a rainy day fund set aside is the best way to ensure that you can make it for at least a few months should the lockdowns happen again. Even if they don’t, you’ll have the money set aside in case there’s something you need that you don’t have the money on hand to pay cash for.
These are just a few of the smart ways to spend your stimulus check or any other form of a lump sum you may receive. Remember, saving is a great way to prepare for any rainy day that could be just around the corner.