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The federal government is nowhere close to approving a round of stimulus checks. But read on to see how an incoming payday might replace that.
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Many consumers have been struggling with inflation for months on end. And they’ve had no choice but to raid their savings or rack up balances on their credit cards to cope with higher living costs.
Because inflation has been raging for so many months, a lot of people have been calling on the federal government to issue stimulus checks. But at this point, it’s pretty clear that a near-term round of federal stimulus aid just isn’t in the cards.
That’s the bad news. The good news, though, is that you may have a windfall coming your way very soon. And if you put that money to good use, your financial situation might improve dramatically.
Lawmakers can’t justify a stimulus round
In March, the national unemployment rate sat at 3.5%. That’s right where it was before the pandemic began, and historically, it’s a low rate of joblessness.
Because of this and a generally strong economy, lawmakers aren’t going to be able to send stimulus checks out anytime soon. There’s really no way to justify them.
Stimulus aid has been utilized in the past during periods of economic distress, such as when the pandemic drove unemployment levels upward in a very big way. But right now, that’s not the case.
But while you may not see a stimulus check hit your bank account anytime soon, if you filed your taxes on time this year, you might soon see your refund arrive. And that could give you an opportunity to catch up on bills, pay off some debt, and shore up your finances until inflation cools off.
Put your tax refund to good use
For the week ending April 7, the average tax refund was $2,878. Chances are, the IRS will update that figure as it continues to process returns. The point, however, is that the typical tax refund being issued this year is pretty substantial. And if you make a solid plan for that money, you might be able to improve your finances and tide yourself over during this ongoing period of inflation.
First, figure out what bills you’re behind on and try using your tax refund to get current. If you owe back rent, for example, it pays to write your landlord a check using your refund.
Once you’ve caught up on bills, take a look at your savings. If you don’t have enough money in the bank to cover a few months of living expenses, use your refund to build an emergency fund.
Similarly, if you were forced to rack up credit card debt to cope with inflation, your refund could make it possible to chip away at your balance — or even eliminate it completely.
While a tax refund is by no means the same thing as a stimulus check, ultimately, both can achieve a similar purpose. So rather than bemoan the absence of stimulus aid, do what you can to put your refund to good use. And if you’re due a refund but haven’t yet submitted your 2022 tax return, do your best to complete it as soon as possible so you can get the money you’re entitled to.
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