12 Smart Uses for the Next Biden Stimulus Check

After months of waiting for lawmakers to negotiate a coronavirus relief package, a second bill was finally passed in late December that provided the public with $600 stimulus checks. But President Biden is already aiming to do better. He recently proposed a $1.9 trillion relief deal that includes, among other provisions, a round of $1,400 stimulus checks, and while it's too soon to know if his aid package will be passed into law, here are some of the things you might consider doing if you wind up with an extra $1,400 at your disposal.

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A lot of people are struggling to keep up with their basic expenses during the pandemic. If you're one of them, be sure to use your stimulus to pay for things like food and medications -- expenses you can't defer. From there, you can use your money for other essentials like utilities and rent.

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If you don't have at least three months' worth of living expenses tucked away in the bank, you can use your next stimulus check to get closer. Having that money will buy you some protection if your income drops or you're hit with an unexpected bill your regular paycheck can't cover.

Credit card debt is bad news. It can wreck your credit score and cost you a huge amount of money in interest. If you're carrying a balance, your stimulus payday could be just the thing that lets you eliminate it, or at least start whittling it down.

Having fewer monthly obligations could really take a lot of financial pressure off, not to mention save you money on interest. If you owe money on a personal loan, you can use your stimulus to tackle that balance.

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Many people have cut back on retirement plan contributions during the pandemic. If you've done the same, another stimulus check could help you catch up. Even if you've managed to keep saving in your IRA or 401(k) at your usual rate, if you don't have a pressing use for your stimulus, you can use it to pump extra money into your nest egg.

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If money's been preventing you from putting the right insurance in place, whether it's life insurance or a better health insurance policy, consider using your stimulus cash to buy yourself better protection. You may also want to look at upgrading your auto or homeowners policy if you feel your existing coverage is lacking.

Mortgage rates have been astoundingly low since summertime. If you're itching to become a homeowner but are a bit short on funds, you can apply your stimulus to your down payment. Or, you can use it to cover moving costs once you do sign on a home loan.

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Many people don't have an estate plan, or even a will, in place. The reality is that you need the latter at the very least even if you aren't wealthy. Though it's possible to get a will done for less than $1,400, it could pay to use that money to engage an estate-planning attorney who can help you put together a strategy that protects your loved ones.

Investing your money is a great way to grow wealth and buy yourself more financial flexibility. You may want to use your stimulus cash to open a brokerage account, or add to one, and load up on some quality stocks that could eventually help you meet your money-related goals.

If you're lacking certain skills needed to advance your career or get promoted, your stimulus check could cover the cost of continuing education. You can use that money to take different classes that help you get to where you want to go.

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If you're self-employed, the right tools could boost not only your productivity but also your income. Your stimulus check could make it possible to buy a faster laptop or update other equipment that will make you better at your job.

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Though most people who file a tax return are due a refund, you may end up owing the IRS money as a result of having underpaid last year's taxes. If that's the case, your stimulus check could be just the thing that covers that tax debt -- and spares you a world of stress and hassle.

Let's be clear: A third stimulus check isn't a given. However, President Biden is pushing for one, and many lawmakers are already on board. While it's too soon to say when that stimulus check could hit your bank account, it never hurts to think about the different ways you might put it to good use.

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