What to do with $1200 - $2400+
Updated: Apr 17, 2020
You can find a lot of articles on what to do with $1000 but today we are going to talk about what to do with $1200 - $2400+ dollars.
If this number sounds specific. It’s because it is. It’s the amount you are about to receive for the stimulus package set to start being disbursed In the middle of this month. (Now full Disclosure, any of this information can change at a moment’s notice as our government are still ironing some things out).
Who Will Receive the Money
This is very high level and I repeat, things change very fast as our country continues to figure out the smaller details of the stimulus package, but. . .what we know is the amount received will be based on your total income when you filed your 2019 or 2018 taxes. If you filed single and you made less than $75,000 you will receive $1200. And if you filed jointly and you make over $150K $2500. . And you will receive $500 per child.
You will receive your money. The way you filed your taxes. If you did it electronically, then you will get it electronically to your account, if you filed in paper, then the check will be mailed to you.
Need Vs Want
Now . . As a blanket statement, In these uncertain times you need to ask yourself every time you spend a dollar. Is this a need or a want? You have no idea how long this will last and what will become of the economy, so every dollar is extremely important right now. Think Priorities first.
Priorities Comes First
Shelter, food, and health are more important than anything. If you are struggling with any of the above due to lay off or just limited income. Please pay these things first. Don’t even think about it, if you currently need money to pay your mortgage, rent, need food, or need clothe. Those are your priorities. In addition, make sure you have pedialyte saved to stay hydrated in case you get sick, mask if you can find any, Clorox wipes, and hand sanitizer if you need any. Priorities first. Don’t think about anything else I will mention if you don’t have these taken care of yet.
Pay You Debt, Specifically Bills with High Payments The goal here is to have money in the bank just in case and if you bills with high monthly payment lingering around, then they need to be paid so you can take whatever extra income you have to savings. You don’t needs bigger bills adding more stress. For example, I had some medical bills that were totaling up to around $300/ month. Even though they were at 0%, $300 is a lot, so when I filled for my taxes this year I made sure I paid them off. Now I have $300 more money to save with.
you’ll be hearing me say this a lot. There’s a lot of options here that you can choose from in which either or would be fine for you
Put into retirement account – Roth IRA in your Credit Union (Preferably) or bank. Retirement is the best way to keep money on hand.
Put into online savings account – There on high yield (High interest) online savings accounts where you can just leave your money there in case of an emergency. Build your Emergency fund while making money. Currently the average online savings accounts is 1.6% when banks are paying .01%. I’ll have a list of online bank accounts from bankrates.com in my show notes.
Put money in school fund for your kid – Sign up for a 529 Plan which is dedicated for your kid’s college, at your local CU or bank. The only con with this is, that this account is dedicated only for college ONLY, so if your kid decides to not go to college than this will not help because you will have to pay penalties if you take it out for anything more than college and school books.
Invest in Stock
Now once again, the most important thing is to make sure your home, food, and health is prioritized. If you extra money available that you feel you cannot touch for 10+ years than I would highly recommend buying stock. It is the best time to buy stock right now.
What I’m doing personal is looking at and comparing stock at current price vs. their 52 week high. Because, it’s a safe assumption that if it’s connected to Covid-19, like hotels stock are very low right now because no one is traveling, then when this all dies out it will go back up to it’s normal price and you will profit from everything going up from there.
Pay Your Taxes
this year I have to pay and the biggest F you to the man from me is to pay him back with his own money. So if you owe to your taxes, pay it off with your stimulus money.
it’s fairly expensive if you are not working, but through these hard times, you need insurance if you don’t have it and $1200 will cover your health for a few months.
Give to Church to Non Profit
This package should ideally not be going to anyone that makes a large amount of money so you shouldn’t be in this situation, but if you find yourself with a check and you don’t NEED
it or want it. Give it to someone that needs it. Donate it to your local church or a nonprofit that you believe in.
Hopefully this was some food for thought.
Now, this information is for you to use and grow financially, but, it’s also for you to share with whoever you feel may need this. Let’s take this information and flip the world upside down. See ya'll at the top.