My Stimulus Check
It’s mid-April and the COVID-19 stimulus checks are starting to hit folks accounts. I’m only getting $1,200 because we have no kids and my wife is not a citizen here and we were not married last year. But hey $1,200 is still $1,200 and there is a lot I can do with that money. There is a lot you can do with that money as well.
I have friends that are getting $4,400 and have no plans for the money yet. I have friends who say they feel guilty getting this money because they do not need it yet there are people out there with no job and no hope that could use it more. I have friends who have said they plan on blowing it on well stuff. So there is every type of situation out there to include some people not getting anything because their income is too high.
The big question I asked myself was “what the hell should I do with mine?”.
What Will I Do With My Stimulus Check?
I felt like this should be a fairly easy question to answer. Yet I felt stuck as I have a good base for my finances very little debt (I choose to keep) and a good amount in investments. I have a stable job and I can’t think of anything I really want or need that is that much money. I thought well I’ll just throw it in my taxable account and call it a day. But I have been thinking about starting to get serious about buying a rental. Well, I’m a firm believer in me keeping very little cash so that my investments can grow faster. But wanting a rental had me thinking cash might be the way to go.
I decided I will keep this money in my Vanguard Money Market account incase I decided to buy a rental this year.
What Should You Do With Your Stimulus Check?
My plan is to start stacking up a little cash so I can have some money to buy a rental if the opportunity presents its self. Only time will tell, I’m hoping housing prices come down a bit due to this crisis. But what about you? What should you do with your money? Not one answer fits everyone’s situation so I will throw out a few thoughts on this.
- Look at paying down high-interest debt
- Start a cash emergency fund if you don’t have one
- Add to your cash emergency fund
- Look at donating it to a cause of your choice
- Stock up on non-essential things
- Spend the money on learning a new skill
- Invest it in a taxable account
- Invest it in a Roth or Traditional IRA
- Plan to use it for an experience once the time is right
There is no one answer to fit everyone. There is also no right or wrong answer here. There are answers that will have a better ROI and outcome for your future though. Need some simple investing check out my Investing 101 Blueprint. My big thing is don’t just blow it on something that is short-lived. Be intentional about how you spend this money. Maybe even break it down into a few of the above choices. Make sure you take care of food, shelter, and yourself first. If you need food use It for that, need a repair on the car? go for it, want to pay your utilities in advance? great idea!
Think About Your Future
Make the best choice you can for your future self. Think really hard about this choice while $1,200 might not seem like much to some it can be a huge difference to some. It can be the difference between getting to work or not if your car breaks down. Hopefully, this post helps you think twice about how to spend that money.
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