7 Ways To Use Future Stimulus Checks To Scale a Side Gig
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Stimulus funds are those that the government releases in situations of economic hardship, such as during a recession or, most recently, the COVID-19 pandemic.
While most of the stimulus checks from the pandemic have long since been issued, with a new presidential administration taking office this month and high costs of living persisting, future stimulus checks might not be likely but could be a possibility.
A stimulus check, like any unplanned for money, can be easy to spend frivolously, however. If one comes in while you happen to be working on scaling a side gig so you can turn it into your main gig, here are some ways to use any future stimulus for maximum effect.
Reinvest In Your Business
Any money you put into a business, side or main gig can improve the business’ chance of growing and thriving. According to Taylor Kovar, CFP, founder and CEO of 11 Financial, “Whether it’s upgrading your website or investing in marketing, putting money back into what you’re building is always a good move.”
Boost Your Visibility
Perhaps one of the most surefire ways to see a return on an investment in a side gig is to put your stimulus into marketing or, as Kovar put it, “boosting your visibility.”
Crystal Stranger, a lawyer, enrolled agent (EA), and CEO and senior tax director of OpticTax.com, agreed with Kovar. She works with early stage entrepreneurs worldwide and has her finger on the pulse of how different kinds of business expenditures actually pay off.
“In order to scale a side gig with a small amount of money like a tax refund, the biggest payouts I normally see are from companies using this spend on marketing,” she said.
Boring but Effective Techniques
Where those marketing dollars are best spent depends on the business type, Stranger said, but shared that it’s often the most “boring but effective techniques” on email marketing or social media direct outreach that help you scale quickly.
Either getting some lead generation tools or doing the legwork of reaching out directly and spending a little on upgraded accounts will typically have the biggest immediate impact on early stage companies, Stranger said.
Website and Online Presence
For longer-term growth, investing in a better website and building an SEO presence can also have big payoffs over time, Stranger said. “And sometimes a small ad spend can be worthwhile to test a new business model out, as it is critical to make sure that someone will buy what you are offering before you invest more time and money into building it out.”
Invest In Education
Kovar pointed out that sometimes the best way to spend a little extra money is on furthering your own skills. “Take a course or learn something new that can help you improve your skills and grow your business,” he said. “Upgrade your tools. Better tools can save you time and make your business run smoother.”
Start a Safety Net
Sometimes the best thing to do with extra, and especially unexpected, funds is to just put them away for a rainy day. “Having a little cushion for unexpected costs will give you peace of mind as you grow,” Kovar said.
Grow Your Money
Even as little as a few extra hundred dollars can start earning more if you invest it into something like a brokerage account or other high-yield savings account. “Put that money to work for you — small investments can add up and make a big difference in the long run,” Kovar said.
If a future stimulus comes your way, stop and think about how you can use these funds to build your side gig before you spend them too quickly.
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