How to Maximize Your $1,200 Stimulus Check
Advice From a Fiduciary Investment Advisor
Wednesday morning the United States government approved a MASSIVE $2 Trillion stimulus package to help combat the destructive panic that has seized the world and the financial markets. Americans (below certain income levels) will be receiving $1,200 per person and each child will receive $500. Financial Experts weigh in on the right steps to take.
4 Steps to Maximize Your Stimulus Check
1. Donate 10% IMMEDIATELY
I’ve read a few articles on “How to Spend Your Stimulus Check” and almost ALL list giving as the LAST thing to do. It needs to be first…period.
I know this sounds counter intuitive. “Give some of my money away? What if I don’t have enough? What if I run out of money? What if I cannot buy food for my family? I cannot afford to give anything.”
But that is fear speaking to you and donating a portion of your money will kill fear at its root.
During uncertain times it is easy to get wrapped up with the unknown and to become afraid. Unhealthy fear makes us do uninformed things (just look at all the empty toilet paper shelves). Giving a portion away to someone or to a cause you believe in, will help you develop an abundance mentality. What is an abundance mentality? It’s the opposite of a scarcity mentality.
But that is fear speaking to you and donating a portion of your money will kill fear at its root.
During uncertain times it is easy to get wrapped up with the unknown and to become afraid. Unhealthy fear makes us do uninformed things (just look at all the empty toilet paper shelves). Giving a portion away to someone or to a cause you believe in, will help you develop an abundance mentality. What is an abundance mentality? It’s the opposite of a scarcity mentality.
Scarcity Mentality – there’s only so much to go around. I’ve got to get all I can, save all I can and sit on the can!!
Abundance Mentality – even though some scary things are happening I know that God will provide for me and I am going to demonstrate this by sharing what I have.
Sharing opens you up to joy. Hoarding opens you up to despair (excessive amounts of TP).
One mentality gives life. The other sucks life out of you.
One breeds a happier existence. The other breeds contempt.
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| "If you give, you begin to live. You get the world." -Dave Matthews |
2. Establish An Emergency Fund (Food & Shelter)
An Emergency Fund is a set amount of money that you put away for…drum roll please…AN EMERGENCY!!
Refrigerator breaks, you run low on food, car blows a blinker fluid gasket (I know nothing of vehicles), furnace needs repair, etc. Anything that interrupts you attaining the daily necessities of life. You do NOT spend this money on NON-emergencies which include, but not limited to:
Refrigerator breaks, you run low on food, car blows a blinker fluid gasket (I know nothing of vehicles), furnace needs repair, etc. Anything that interrupts you attaining the daily necessities of life. You do NOT spend this money on NON-emergencies which include, but not limited to:
- Kid’s birthdays (they come around every year on the same day)
- There’s a sale online of 50% off (unless it’s toilet paper! Okay no more TP jokes)
- There’s 0% financing available on that $63,000 truck you “need”
- The big screen TV at Wally-World is giving a 70% rebate!
- I can get 2,000 more channels on my cable TV for “only” $150 a month
- Anything else that doesn’t include necessities: food & shelter
To learn more visit Dave Ramsey's site on Emergency Funds:
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| "Money is a lot like oxygen, if you have enough you never think about it." -Unknown |
Getting rid of high interest debt can go a long way in establishing a more enjoyable life. On average if you have a credit card and pay the minimum payment you will pay off the balance in 30 YEARS!!1
Debt on “lifestyle” purchases (TVs, computers, game consuls, etc.) gives you pleasure in the movement but will give you long term stress in the future (having to make the payment and pay the interest). On most high interest debt you pay interest up front and very little goes to the principal.
Let me illustrate: Let’s say you buy a TV on credit for $1,000 (hey it was marked down from $2,000!!) and your minimum payment is $100. More than likely your $100 payment pays $70 in interest and $30 toward the $1,000 you borrowed leaving a balance of $970. Yikes.
Wiping out all of that debt or a large portion of it will secure your future and make you feel like you are gaining control over your finances. It will put you in the drivers seat of your life.
To learn more visit Dave Ramey's site on DEBT:
Or use common sense like this guy:
4. Save The Rest
Once you’ve funded Steps 1-3 then don’t spend the remaining funds on anything else. Put it in a high yield money-market or savings account that is liquid (meaning you can get to it without penalty). We don’t know what the future may hold or what may happen during these times so having money put away that you don’t touch will give you a bit confidence in the future.
To calculate the amount of your stimulus check visit: https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/
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David Cadarette is a registered Fiduciary Investment Advisor Representative with the Securities & Exchange Commission (SEC) and is the CEO of CLC Investment Advisors, LLC with offices in Petoskey, Boyne City, Mount Pleasant & Traverse City Michigan. He currently lives in Charlevoix Michigan with his family.
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