My fiscal stimulus* check got deposited a day earlier than the projected Jan. 4 date. Thus far I have used some of the money to:
Award $25 each to my great-nephew and great-niece, asking them to go forth and support the local economy.
Donate $25 to a GoFundMe for a Fairbanks woman in a tough situation.
Give $50 to the Food Bank of Alaska.
Buy $300 worth of gift cards at a small local restaurant. The young cashier was startled when I asked. “How much?” she said, and when I confirmed the figure she ran to get her boss. The supervisor thanked me several times and when I told him I’d done the same thing with the previous stimulus he said, “You’re helping us keep the lights on.”
Not sure where the rest of the money will go. But it will definitely go, i.e., it will definitely be spent. This is despite the advice I keep hearing to “invest it” or “save it.” Back in 2008 I resisted spending the fiscal stimulus, because I was anxious to rebuild savings depleted during my protracted divorce.
But that’s not what this money is intended to do. The idea is to give struggling businesses (local or national) a bit of a goose.
To be clear: I understand why some people would much rather build their own savings, or give the landlord a bit against the back rent, or pay down their credit card debt. I was there myself. But now I want to play some small part in helping others.
Some of you probably want the same. And I’d like to point out that it doesn’t all have to be bonbons and pretty shoes. You could also opt for frugal stimulus spending. That is, spending with an eye toward getting not just the most bang for your buck but also the most value from the result.
Obviously you can spend it any way you want, even if that means dropping hundreds of dollars on Snickers bars and dancing boys. It’s your dough. Do with it as you will. But here’s a handful of ways to mix fiscal stimulus with fiscal prudence and community support.
The emergency fund you can eat
That’s the term that personal finance author (and CFP) Liz Weston uses for a well-stocked larder. Pasta, dry beans, flour, sugar, cereal, canned goods, powdered milk, meat or other proteins – whatever you eat a lot of is what you should buy.
Stock up on laundry soap, toiletries and other non-food items, too. Yes, that includes toilet paper: If the surges continue, supply-chain disruptions and/or hoarding behaviors might re-emerge.
Got a pet? Buy a bunch of food, litter and other necessities and/or prepay the next few grooming sessions.
If you change your own oil, buy a case now and some oil filters, too. As long as you’re in the auto-supply place, pick up new wipers (you’ll need them eventually), windshield washer fluid and antifreeze. Go out and kick the tires, too, and if your wheels are iffy then start shopping for replacements.
Bonus frugal points if you use some of the stimulus money to get a warehouse club membership, so you can buy certain items in bulk. (Personally, I recommend 50 pounds of flour and a bag of yeast so you can make this simple, delicious rustic bread.)
Maybe you’re not ready to shop just yet, because you’re generally well-stocked. If that’s the case, consider…
Buying gift cards
Supermarket cards. Big-box-store cards. Gas station cards. Drugstore cards. Pet center cards. Or whatever you use the most.
Now you have $600 worth of prepaid necessities. Keep them in a very safe place and for heaven’s sake don’t forget you have them. (A whole lot of gift cards wind up unspent.) Having a couple with you at all times lets you take advantage of any sales that you see.
Bonus frugal points if you buy discounted gift cards on the secondary market, at sites like Cardpool or CardCash. You won’t be spending all $600 at once, but you will be spending (especially as regards groceries and gas).
Take care of yourself
Lots of people procrastinate about going to the doctor, dentist or optometrist. That could be to a phobia or a simple lack of time (hi there, single parents!). But for others it’s a question of cash flow. Health-care spending increases noticeably once tax refunds start appearing, according to a study by the JPMorgan Chase Institute.
Don’t wait for your tax refund. Use some (or all!) of the stimulus for self-care:
- Make the appointment(s). Doctor, dentist, optometrist, massage therapist or whatever you need to ensure better health. Keep an eye out for coupons or advertised specials for eyewear and dental exams/X-rays. Ask if you can get a discount by paying cash, too. (My dentist gives me a 5 percent price break when I write a check instead of using a credit card.)
- Fill the medicine chest. Contact lens solution, vitamins, diabetes test strips, bandages, antibacterial ointment, allergy meds, painkillers and other items that you’ll need during the next year.
- Buy pandemic supplies. Hand sanitizer, disinfectant wipes and masks are now much more readily available. Don’t wait for another run on these supplies.
Get yourself some good shoes, if yours are down at the heels. Worn-out shoes can lead to back trouble.
Winter boots letting in the slush? Replace them.
Maybe hit the post-holiday sales for wardrobe basics, too, because January is when a lot of everyday shirts, pants and dresses get remaindered along with the ugly Christmas sweaters and sparkly New Year’s Eve attire.
(Pro tip: Stretch your funds by matching coupons, sales and rebates with apps like Shopkick, Fetch Rewards and Ibotta**. The Coupon Mom website does the matching for you at drugstores, supermarkets and dollar stores in every state.)
Treat yourself, too
Prepay some of those massages, if you feel safe getting that service right now. The massage therapist I see cleans the heck out of every possible surface and sluices the table and face-cradle with antibacterial spray before putting on clean sheets. She has an air purifier running and wears a mask throughout the massage, too.
If you’re not comfortable getting a haircut or manicure right now, consider prepaying those services. The proprietors will thank you.
The lively arts have pretty much shut down where I live (and probably where you live, too). But they might come back if they’re given a little help to tide them over. I just now stopped writing to make two such donations.
Or maybe museums, aquariums, zoos or science centers are more your cup of tea. Buy a season pass (even if they’re closed) or make a donation. This could also be a good gift for someone who already has everything.
Here’s an idea that’s both small-business-supportive and healthful: Buying a community-supported agriculture plan. Just about every region (even Alaska!) has some kind of CSA setup. The USDA’s Agricultural Marketing Service page can help you find the ones in your area.
Technically this section isn’t “frugal” per se because you’re spending money. But I believe that treating yourself kindly means you’ll be healthier and happier, and thus less prone to illness (including COVID, please please please) and to the kinds of stress- or pain-related behaviors that wind up costing a bundle both financially and emotionally.
Your stimulus mileage may vary
Depending on your situation, it might not be a good idea to spend all the money. Those who are behind on their rent might want to make at least a good-faith payment. It’s a way of reminding the landlord that you haven’t forgotten your obligation, but that you also need to keep food on the table.
But if work is slow (or nonexistent), hang on to every dollar you can. Stockpiling is smarter than spending in such cases.
If you can, however, give frugal stimulus spending a try. You’ll wind up a little healthier and/or a little better-prepared for what comes next. You might also help keep a small business owner’s lights on.
Readers: What are you doing with your stimulus check, if you get one?
*Am I the only person who thinks this phrase sounds like something an unpleasant medical procedure?
**I’d be delighted if you used my links. For Ibotta, https://ibotta.onelink.me/iUfE/1005cd3f? and use the referral code gtotprb. For Fetch Rewards, head to https://www.FetchRewards.com and use the referral code E6CK1. And for Shopkick, go to https://www.shopkick.com/ and fill in the referral code WIN358965.
It came in to my account, it left my account. Grateful for it to get caught up on some bills. Will also help to fill the free little pantry in the neighborhood, and will buy myself a little treat at Starbucks.
I got one on the 4th. (Actually, two, if you count Husband’s.) We just paid $1000 last month in truck repairs, so it may go to replenish that emergency fund money. We don’t seem to have any great need to go out to eat a lot or buy extra things right now. Can’t tell you why — maybe because it’s after the holidays?
I made some donations. The rest is likely going to home repair and maintenance personnel for tasks that are beyond me, time- or skill-wise.
That’s a clever idea to give your niece and nephew cash to spend on local stuff. Start that awareness early.
Due to a bonehead financial move this year, we are projected to have a HUGE tax bill. Thankfully, many years of frugality make it not too big a problem to pay it off quickly. However, since the bonehead move will yield income for many years to come I’m not too concerned.
I felt the need to put the stimulus money toward this tax bill, but I have bought gift certificates for local businesses, scheduled massages every week at a local massage center, and will continue to donate to the local blessing box. I also am picking small businesses over big ones with almost every purchase I make.
Me, too, also. Alaska businesses were hit pretty hard by the lack of tourism this past year. That’s another reason I’m doing those giveaways from local companies.
I like the idea of getting some gift cards at restaurants. Unfortunately, in my area indoor dining is still prohibited. Curbside and carryout is still allowed but some places are just closed completely. I feel for them.
Until Jan. 1 ours had also been closed for dine-in. Now they’re open at 25 percent capacity, but I’m still not ready to go back and sit in an enclosed space (my favorite restaurants are fairly small) without a mask.
Really looking forward to the day that I can do this, although I’m not quite sure how I’ll know it’s safe. Maybe after I’ve had both vaccine doses and waited the proscribed amount of time?
Ours is going toward a pressing transportation need and to purchase a new computer monitor for my husband, who is improving his work-at-home setting. It would have been nice to put the stimulus money in savings, but we just paid off a long-standing medical bill we’d been making payments on for 14 months, and the medical money’s now been earmarked for savings. So that helps.
Donna, don’t forget that some landlords are also small local businesses, and catching up some back rent might well help them stay afloat during this difficult time.
The bulk of our stimulus check will probably go toward replacing our ailing refrigerator. Not sure about the rest yet, but I’ll definitely take your suggestions into account.
Yep! Which is why I mentioned at least a token rent payment.
Ah, sorry. I misread that as something like, “You could make a rent payment, OR you could support small local businesses such as shops, service providers and restaurants.”The mobile home park where we live has recently changed hands, but for the last 25+ years our landlord was a neighbor, and I know he took a serious hit when tenants couldn’t pay their rent.
Great post as always, and I’ll definitely keep looking for ways to support the local economy!
Agreed! Not every landlord is a greedy, heartless slumlord. Sometimes it’s a person who bought a four-plex and is living in one of the units, and without regular rent payments will have a hard time making the mortgage.
And having been an apartment building manager, I know that the owner wasn’t making a killing due to things like apartment damage, a hundred-year flood that caused a lot of problems, or the need to put in a new door intercom system or replace the carpeting in the entire building. When people gave him a hard time or were late with rent, he’d tell me that it’s better to keep a tenant than look for a new one.
Hoping that 2021 is kinder to us all.
I’m planning to give to the food bank and put the rest towards a small project at our house. We know the contractor well and he needs work for his crew. Since we need the work done eventually, why not now? It’s outside so we will not have direct contact with the crew.
I am supporting the local hardware store in my small town. The young man who owns it bought it 2 years ago and is struggling. I decided to repaint the interior of my home, so I will buy the paint from him and hire a local out-of-work man with a family to do the painting. It will be a little more than the $600, but that’s ok.
There is so much misery out there, and if I may be political, I think that the congress of the United States is bonkers, giving out so much of our tax money to foreigners when so many of us are desperate.
My $600 is going to help payoff the Parent Plus Student Loan balance that I transferred to my credit union. I’ve emptied a piggy bank and an outhouse shaped bank and rolled that coin. Will add that to several thousand my sister is lending me. Will combine it all with reallocating some $$ from my sinking funds. I hope to have it all paid off within the next 30 days, then will make strides to pay back my sister. I do realize I am obsessing over putting every penny to this bill, but I really need this to be done. And then I will let out my debt-free scream.
I did make several donations to local charities, etc prior to 12/31/2020, to get that new charitable donation deduction on our taxes.
I let out that scream last week, in the parking lot of the credit union as I paid off that loan. Once I had dumped everything at it, the balance owed was $76.01, so I transferred it from the Emergency Fund. Then spent an hour on the phone talking to my sister to let her know her money was well spent, and thanking her. I feel like I can breathe!
Woot! Very glad for you.
Haven’t gotten my $600 yet, but it will go towards rent. Just like the earlier $1200 did.
We are donating the whole $600 from one of us and spending the other locally. Donated $100 to ACLU, bought a local restaurant meal and tipped waitress and kitchen staff heartily. Stocking up on vitamins. DH bought new work boots. Researching local Go Fund me to lend a hand.
We have not been negatively impacted by the pandemic at all and are very grateful.
I, too, have been lucky in that I already worked from home and my job has not thus far been imperiled. Have been trying to spread some of the (relative) wealth around, by tipping $20 on takeout and $20 on my $11 beauty-school haircut.
You should see the looks on the students’ faces when they realize I gave them a double sawbuck and not a dollar. One of them had previously been tipped $2, which is technically correct but still…! The young woman told me she’s having trouble getting her required hours in because fewer people are getting their hair done (especially during the lockdown earlier this year).
All $600 will be spent on other people. I don’t need it.
I feel bad for everyone in this.
My stimulus deposit already landed. My handyman is getting a big chunk of it. The walls and steps in the basement stairwell need extensive repair, so this will finally get done. If any is left it will go towards upgrading to nicer eyeglasses than my insurance will cover (yeah, no-line bifocals!).
That’s supporting not just the local economy but your household’s own health and safety. A thumb’s-up from me.
I desperately need a chair that assists me when I rise. My right hand and right knee will not help me enough, and I am further damaging both. Plus, I want to get a little pedal thing that sits on the floor for some exercise. The rest will be used for supplies for Big Pink Purse Charity.
We have cut our tenants rent since April. Their hours have been cut. They are good tenants and I am glad to have them. Yes, we could do IOUs and get our money eventually but I would rather just consider a personal donation and know I helped.
You are a good landlord. Let’s hope that this comes back to you in terms of tenant loyalty and care for your property.
Its an interesting question how to handle this windfall. On the one hand it’s accepted that people who immediately spend their windfalls, like lottery winners, generally end up in poverty. On the other hand, people who are generous often end up wealthy.
Tomorrow we are driving a $200 check over to the president of our local VFW to help beleaguered vets, usually older people. My husband is a vet and this is on our heart. Probably the next check will be to the local animal shelter.
Oddly, enough, when the last stimulus check came through, I sent a $300 check to my vet to use for any client who could not afford medical care for their pet. She never even cashed it although I called once and reminded them. Weird.
Maybe you inspired her to offer this service on her own.
I just quit my job at a very busy deli/small grocery store. I am 5 months out from turning 62 and plan on collecting my Social Security benefits then. With the newer more virulent strain of Covid spreading, my husband and I together decided enough was enough. The stimulus, plus our pensions, savings and my husband’s Social Security, will get us through until then. It came at the right time.