I know that the second stimulus check is still up in the air, so this post will talk about options you can do if/when it comes. If you find this post helpful then share it with a friend that could also benefit. I will also note that I will only talk about two options because they are what I feel is best to discuss. There will be no 10 ways to use it.. because there isn’t..
Save The Money
I want to start with the most obvious option that you can do if another stimulus is coming. I know more than a handful of people that decided to go on shopping sprees after receiving $1,200. The biggest purchases were TV’s or to combo it with a game console. Please don’t think about doing that a second time around. I understand that spending means putting it right back into the economy (especially during this pandemic), but saving it would be a better thing to do.
Would you rather be spending all the $1,200 in one go or saving that money for something else later when everyone opens back up. this scenario falls under the concept of opportunity cost. Even though this post is based on only an opinion, save the money. And of course if you are tight on money and actually hoping for another check, then make sure to budget the spending. That means necessities, rent, bills, or any other important payments.
If you are young with no bills or worries then saving that money should be the best option to do. Don’t play the game of “If only I had” because you decided to choose desires and wants vs needs.
Invest The Money
This is another good option to think about if that second round does come. Yes you will see a lot of articles talking about how best the stock market is doing one day and amazing another. It’s good to read the information and understand whats going on, but take it with a grain of salt. The markets will always rebound long term and that is exactly what you should do. If you decide to invest your money into stocks, make sure to diversity it. ETF’s, treasury bonds, dividends, big company stocks, etc.
Think about it, you’ll have $1,200 invested for your future and a huge jump start over others your age. Yes this section sounds like i’m talking to young adults, but even people in their late 20’s should be taking this advice. I have slowly been investing into stocks the money I received from the last stimulus check.
I know that this post is short, but I hope that you found this quick information useful or sending it to a friend will be helpful. Thanks for supporting The Finance Starter and you can read my past post below.