What would you spend your stimulus money on? What are the best ways to spend money? And how can you use your money wisely? We’ve all read stories of people who used stimulus money to buy a boat and a grill or who bought themselves a new car, only to find that they had no money to put away for retirement. And then there are the stories of people who wasted stimulus money on frivolous purchases or on things that they could have bought with a very small amount of money. As the federal government continues to spend billions of dollars to help stimulate the nation’s economy, there’s a question on everyone’s mind: how should I spend my stimulus money?
- Pay down your debts
As most of you know, the federal government has put forth a $787 billion stimulus package as part of the economic stimulus package. One of the many things in the bill that will give your wallet a boost is the new student loan cancellation plan. The program will allow for the cancellation of approximately $61 billion in federal student loan debt for current and former students over the next two years. Most people think of a stimulus package as a one-time event, but the truth is that it’s a key opportunity for any citizen to take advantage of, and those who know-how are already doing it. The money in your pocket is the stimulus, and the smart way to spend it is on everything from your mortgage to your car to your children’s college education.
When the Federal government provides you with money, it isn’t for you to spend as you wish. As a result, there are a lot of ways the government wants to see you spend it and if you’re thinking of ways to make it to work, you’ve come to the right place. We’re going to show you how to use the money you’ve been given to make your life better and help you pay down your debt.
- Pad your emergency fund
The government has just provided a $60 billion economic stimulus package to help get the economy back on track. The President of the United States has called the U.S. economy the “worst in history.” It’s no secret that many Americans feel the economy is struggling, and many may be wondering how to spend the money they were given. How do you set up a budget, which way to invest your money, and what is the best way to save for the future? For most people, emergency savings is a perfectly sensible idea that should be executed every year. It’s not a luxury item, it’s literally a safety net that helps you be able to deal with unexpected situations. If you are in a situation where an emergency is inevitable, you want to be able to get by for a few weeks and get back on your feet as soon as possible.
- Cover the basics first
For most people, emergency savings is a perfectly sensible idea that should be executed every year. It’s not a luxury item, it’s literally a safety net that helps you be able to deal with unexpected situations. If you are in a situation where an emergency is inevitable, you want to be able to get by for a few weeks and get back on your feet as soon as possible. The economy is improving, the effects of the recession are fading, and consumer confidence is on the rise. That is great news, but the economy is still in a fragile state. We are near or past the point of no return and cannot be sure who the new president will be or what policies he or she will pursue. So, our immediate focus is on the fundamentals, as we all must plan for the future.
Every month or so, the government releases a check to its citizens. These benefits are called “stimulus payments,” and while every family has different needs, there are some people who will put these payments to good use. In case you still think your stimulus, check it is going to last forever, you might want to spend it before it runs out. The truth is, one of the most important things you can do with your stimulus check is to buy a home. While it seems like a dream come true, you won’t be enjoying that dream for a while.