What To Do With Your $1,400 Stimulus Check
If you've spent your check before you've even gotten it, this one is for you.
The COVID-19 vaccine is finally being distributed, but the pandemic is still causing ongoing issues. To reduce the tensions caused by the pandemic, Biden signed a $1.9 trillion stimulus package into law.
Want to get an update on when you’ll get your #stimmy? You can check on the status here. Let’s break down what you can do with your stimulus check:
1. Bonds Over Savings
Do you want to know what the average interest rate is for a savings account?
The national average is 0.10%. That’s ridiculously low.
If you plan to save your stimulus check, your savings account will hold it safe for you… but don’t expect your cash to grow.
If you want to save it and earn higher interest, purchase bonds instead.
What is a bond you ask?
Well, when you buy a bond, you are lending money to the government or a company that issued the bond. In return, the government or company that issued the bond is agreeing to pay your money back, with interest, at some point in the future.
What’s so good about bonds?
The interest that’s paid back is much higher than an average savings account. Some bonds pay you up to a 5% annual interest rate. If you’re looking to start, check out Worthy Financial. Their bonds are used to provide loans to growing U.S. businesses. The demand for their bonds is so high that you may need to jump on a waitlist.
2. The Growth Game
The Growth Game is simple. Every day, your goal is to have more money in your account than the previous day. This will help turbocharge your savings.
Day 1: $1,400
Day 2: $1,405
Day 3: $1,450
Day 4: $1,500
… and so on.
Keep a record so you’re staying on track of your growth. It doesn’t need to be $50 or $500 every day. It can be something as small as $0.50 cents per day.
If you want to get in the habit of saving money, you have to be consistent with it. Consistency (regardless of how small) is the best way to grow your cash.
If you’re looking to invest your money, you should do some due diligence in the companies you invest in. Don’t just purchase a company because everyone around you is doing it. Consider this:
Which sectors interest you?
Which companies do you think will be profitable in the future?
What are the total outstanding shares?
What % of the shares are held by insiders?
Apps like Robinhood and Public are easy to use but they don’t always show the full statistical overview of how a company is doing. To find out more information on a company you can go to Yahoo Finance, type in the ticker (Ex. Tesla is TSLA), then on the top, navigate to “Statistics”.
From here, you’ll be able to see a lot more data on the company like how much they’re earning, how much debt they’re in, what percentage of the shares are owned by insiders, and so on.
4. Tuck & Hide
If you have spent your stimulus check before you’ve even gotten it, then this one is for you.
Tuck and Hide your stimulus check. By this, I mean put it away somewhere safe that you can’t easily access. If you don’t have access to it and it’s hidden from your sight, then you won’t think about it or think about spending it.
This way, if any financial emergencies occur in the future, you’ll be prepared to tackle them. COVID has made it clear that we are living in a very uncertain time, so try to be certain about keeping your stimulus check safe.
5. Personal Growth
If you are planning on spending your stimulus check, try to save a portion of it before you spend the rest. Expanding your knowledge is always a meaningful investment of your time and effort.
It’s called a “Personal Investment” when you find ways to help you grow personally and professionally. Try to purchase things that will help with your long-term growth such as purchasing courses and earning a certificate using this platform.
To improve my personal growth, I’m taking a course: Introduction to User Experience Design to learn UI/UX and find ways to help our users have a better overall experience when using the app.