$1200, $600, and now $1400 Stimulus Checks, how to spend?
Picture Source: https://www.debt.org/blog/second-stimulus-check/
2020 instilled fear among the masses and the government soothed it down with a stimulus of $1200 early in 2020. I hope you remember what you did with your $1200 checks (which could well be around $4,800 if it's for the family with 2 kids and a spouse).
Do you remember what you did with your first check of $4,800?
Then cometh forth another check of $600, totaling to a $2,400 check for the whole family.
Do you remember what you did with your second check of $2,400?
2021 with the change in government, having another stimulus bill passed, brings home another $1,400 stimulus, totaling to a sweet $5,600 for the whole family.
Do you know what you will do with this $5,600 check?
So, if we keep the same example of a family of 4, this makes it a $12,800 stimulus for when you combine all three of them. That is a lot of money. It surely is free, but it's yours because you had been paying this money to the government for years in the shape of taxes in one form or the other.
Let's get one thing straight so that we can think differently throughout this article!
Government is not paying your stimulus so you can stimulate yourself, but to stimulate the economy!
So if you have plans to book a cruise, buy those Nike shoes, Louis Vuitton and Gucci bags, or book a tour to Europe or the Caribbean, think twice, do you need them, can you survive without them? I mean it's all about priority! some people value these over investments.
Understand that those fancy shops and malls would love to put their $800 worth of merchandise on sale for $600 for you to spend your first check on that one product, and do the same for your $1200 by selling you a $1500 worth of product. This march you will see many outlets selling you expensive merchandise and products at around $2400. This is how they target you!
Here is what you should do with your next check!
- Spend some on needs
- Pay your debts first
- Be smart, set your emergency fund first.
- Invest!
- If you have some money left, spend it, and enjoy!
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Dear @vixmemon
Interesting choice of topic. Upvoted already.
Small correction: It's not free and we didn't pay those money.
Cost of those money is future debt, which is going to be a heavy weight for the economy and it's future recovery / growth.
ps.
All those stimulus money make me wonder how will it all affect crypto.
My view is quite straight forward: there isn't enough assets which wouldn't be already in the bubble, which could absorb even small % of those newly "printed" FIAT currencies.
It's obvious to me, that as long as economies will be providing new stimuluses - crypto and other assets will grow in price. More and more people who are moving into crypto are doing it, because they fear that FIAT currencies days are numbered. And those people won't move their wealth back into FIAT. Out of that fear. It's simple as that.
Have a great monday buddy :)
Yours, Piotr
Agreed on,
Agreed on,