This post contains affiliate links to products that do not affect your price but help support this website.
Teachers are about to receive their third round of stimulus checks from the government. And since many teachers are still employed and earning a paycheck, this can often be viewed as extra income. If you find yourself still employed, earning your income, and now receiving a third round of government stimulus, here are five recommendations on what to do with that money.
1 – Pay Off Debt
Debt is one of the greatest powers that prevent people from becoming wealthy. Einstein said the greatest force in the world is compound interest. But with debt, that force is working against you. Instead of accumulating wealth, you’re sending yours to someone else… with interest!
Take that extra money and free yourself from the bonds of debt. Then instead of sending money to bill collectors every month, start taking some of the suggestions below to increase your net worth.
2 – Spruce up that Workspace
Many of us are working from home, or in classrooms that don’t look as inviting as they could.
Studies have shown that a comfortable workspace will help lower your stress and improve your attitude. Which could, in turn, increase your productivity or just make you a happier person.
So buy that comfy chair you’ve had your eye on, some nice desk decor, a plant, or any organizational equipment that will help make your workspace look more inviting and calming. Consider it an investment in your personal well-being. Which could lead to even greater benefits.
3 – Invest in Yourself
Is there an online course, workshop, or professional development that would help you greatly, but you’ve never been able to afford it due to your teacher income? Well, now’s the time!
Take that extra stimulus money and spend it on something that will make you a better teacher, healthier, happier, or that will increase your worth.
Learn a new skill that will help you make extra money or start that side hustle.
Take a course on classroom management that will make your job easier.
Take the 40 Hour Teacher Workweek program that will help you get more done at work in less time, so you can prioritize family and other activities.
Or take a host of other online courses that you’ve always wanted to buy never thought you could afford to.
4 – Get Your Time Back
The new teaching norm has no doubt forced you to spend more time than usual trying to learn new skills and teach in a new way.
So use that stimulus money on something that can get you back some of your time.
Hire a service to relieve you of some of your household duties (lawn care, cleaning, repairs, etc.)
Or use that money on meals – or a meal preparation service.
I spent my money purchasing a Rumba (robot vacuum) for our house. We (my wife and I) are saving time and the house is much cleaner since we send it out way more than we used to actually vacuum. It’s much more cost-effective than a cleaning company or maid, and it’s just fun to watch!
I also used our stimulus money on a lawn care company. Mowing my lawn took me two to three hours every weekend. Plus time cleaning up after myself, resting from being tired, and repairs on the mower or weedwacker. I’m probably getting at least half a day back every weekend. My stimulus check can cover the cost of lawn care for multiple years. And the time I’m getting back is making it worth SO worth it!
Find something in your life that you can hire out, and don’t feel guilty for doing it. You’re no doubt spending a lot of extra time learning new programs and policies at school in light of the pandemic. So get some of that time back by spending that stimulus money on yourself.
5 – Change Your Financial Future
Do you have enough money invested for your future? I meet so many teachers who are worried that they don’t have enough to retire on.
Financial coaches recommend setting aside at least 15% of your income each year for retirement. But many people struggle to find the cash to make this possible. The stimulus check could be your opportunity to play catch-up.
If you’ve paid off all of your debt, invest in a Roth IRA. You can open one for free through Schwab and other online brokers. Or find a financial coach in your area to start one for you.
Roth IRA’s have limits to how much you can invest each year. In 2021, the amount is $6,000 per person if you’re under 50 years of age. If you’re over 50, it’s $7,000. If you’ve maxed out your Roth IRA consider other investment vehicles like a traditional IRA or your child’s college planning.
Another Great Form of Investing
The reason we invest money is to make it grow. We put our money to work. Besides investing money in the stock market, which can sometimes be a gamble, there is another great way to put your money to work.
I always recommend using your money as an investment to build up your skill set. Learn a new skill that will increase your earning potential.
Investment Alternative 1
Some educators go for a master’s degree. However, this is not my first recommendation if it is just to increase your earning potential. You should check with your school or district pay scale to see how much a master’s degree will increase your paycheck. In my district, it’s a $3,000 per year boost. This means that a master’s degree that costs you $21,000 to earn will take 7 years to break even!
Of course, a master’s degree can open other doors – such as being promoted. Which could also increase your income.
Another warning is to make sure your master’s degree will count towards an income increase. Some schools and districts only stipend teachers if their master’s degree is in the subject that they teach. And a master’s degree in your subject area may not qualify you for that promotion you seek. For example, as a math teacher, a master’s in mathematics would earn me that $3,000 annual bonus, but it would not qualify me to become an administrator. For that, I would need a master’s in educational leadership. In some areas, a master’s in educational leadership will qualify you to become an administrator, but it might not count towards the bonus stipend. So make sure you check before you start your master’s degree journey.
However, I Recommend Another Avenue of Self Investment
Instead of a master’s degree, which as mentioned could take many years to pay off, I recommend starting that side hustle!
I love to help people start earning extra income on their passion. Whether it be creating art, fitness coaching, or my favorite, selling your teaching resources on Teachers Pay Teachers, I encourage everyone to start their side hustle immediately.
Besides the extra income, starting a side business will teach you so many valuable skills, like website design, SEO, social media marketing, graphic design, and more!
Plus! You can start your side hustle for relatively nothing! A website can be purchased for just $4 a month! Facebook and Instagram business pages are free! TpT seller’s membership is just $5 a month! You can publish a book on Amazon for free! You can start selling shirts on TeeSpring.com for free.
So take that extra stimulus money and start your side hustle.
If you want to learn a new skill, like website design, writing, drawing, or a host of other amazing and interesting talents, SkillShare has 1,000’s of courses, taught by professionals, and offers a free 30-day membership.
If you want to learn how to start selling your teacher resources on Teachers Pay Teachers, I have a free eBook that you can download today!
