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5 Things You Should Know Before Spending Your Stimulus Check On Future Travel
Many of us have received our stimulus checks and if you’re itching for a vacation, the first thing that may come to mind is to spend it on future travel. With the prices on travel being so low, this sounds like a golden idea, but there are things you should still consider before making this move.
Financial advisors are suggesting to pay rent, bills, and buy food before making travel purchases. “It’s important to address your immediate expenses,” says Katie Warchol, a financial advisor with Edward Jones to USA TODAY.
So, what exactly should you know before making a travel purchase with your stimulus check?
You Should Save For Rainy Days
Sure, you may have a job now, but as we’ve seen in the past few months, life is uncertain. We don’t know how much longer we’re going to be experiencing this pandemic and it’s a good idea to put money towards an emergency fund (three to six months of cash saved up).
“You might have a job now but the future is uncertain. If you feel financially stable and your immediate needs are taken care of, let’s talk about what other goals you might have,” says Warchol.
Stay Informed With Travel Rules And Cancellations
Rules vary by state when it comes to travel and quarantining. If you’re planning to travel to another state, it’s important to stay up-to-date on the rules and any event cancellations.
Upgrade Your Travel Insurance
Most travel insurance policies will not cover canceling travel because of the pandemic. If you upgrade your travel insurance, you’re going to have to pay more, but you’ll also be covered under a cancel-for-any-reason policy.
Consider Not Leaving The U.S.
Currently, the CDC is recommending people to not travel if it isn’t essential and will announce when it is safe to travel again. You can stay updated on the CDC’s travel FAQ page, but for now, consider traveling domestically.
Check The Airline’s Policy Before Booking
According to Elizabeth Monahan, spokeswoman for Tripadvisor, it is best to check directly with the airlines about their policies and restrictions.
Monahan tells USA TODAY, “Policies vary by carrier, so it’s always best to visit your airline’s COVID-19 restore pages directly for the most up-to-date information and guidance.”