The third round of Stimulus checks is in the works for struggling Americans. And while the amount is more than twice that of the second stimulus check, it still won’t go a long way in helping families. Not only that, it might not do much to stimulate the economy as a whole at this stage of the pandemic. Why is that?
The stimulus isn’t helping the economy because the checks issued to the people are too few and far between to catch up their bills, much less participate in consumerism. But what if your bills are current, and you don’t need the stimulus Money to immediately patch your budget holes?
In that case, you have more options with which you can do with your stimulus check. Instead of blowing it to buy something you don’t need, you might consider dabbling in the stock market to make it grow into something substantial. Then you can use that money in other ways to help prepare you for the future, or another emergency.
The Purpose of Stimulus Money
Before you decide what to do with your next stimulus check, you need to know the purpose of the money. In its purest form, when the government returns your tax dollars in the form of stimulus, the purpose is to stimulate the economy and keep it moving. Since the beginning of quarantine, people have spent money on essentials, but little else, effectively bringing the economy to a halt.
Stimulus money is a way to give citizens the means to spend money in the free market and grease the wheels of consumerism. Unfortunately, most Americans needed that money to feed their families and keep the lights on, so the stimulus didn’t achieve its intended purpose.
If you can cover your finances at this stage of the pandemic, you might consider using your third stimulus to help out the economy in the form of investing.
Revisiting Your Finances
You might have a budget already, but if you don’t, you should start one to track your finances and make sure you cover your bases before spending your stimulus. If you find you don’t need the stimulus to pay the bills, keep in mind that it’s still projected to be only $1,400. Trying to free up any cash you can from your budget to add to your Investment funds could be a smart way to grow your nest egg while boosting businesses.
To maximize your investment dollars, reduce or eliminate any extra bills in your budget. If you carry any credit card debt, now is the time to get rid of it for good because credit cards never help your bottom line. Talk to an agency about a debt consolidation loan that could take all your eligible debt and roll it into one loan with a single monthly payment. That way, you can use the money you save to invest in the market.
Don’t Forget Savings
Before you invest in the market, be sure that you don’t need the extra money immediately for your emergency fund. Your emergency savings should equal about three months’ worth of expenses for you and your family. As we’ve seen over the length of the pandemic, having a good amount of savings at the ready is not only smart; it’s a must.
Enter The Market
Once you have your savings taken care of, have your investment goals in mind and discuss them with a financial professional. They will help you look for and choose the best investments to fit your goals and ensure you diversify your holdings to minimize your risk.
If the financial expert presents investments you’d like to capitalize on right away, consider applying for a short-term loan. There are agencies that offer no credit check loans Lubbock, TX and other cities across the country. You can get up to $2,000 to use for initial investments and repay the balance in installments.
Keep Your Eye On Your Investments
Investing in the market is exciting, and there’s nothing more satisfying than watching your money grow, but reducing your risk doesn’t mean you’ve eliminated it. Keep a close watch on your investments and notice what makes them move. Doing so can help you learn when to enter the market, how long to hold your stocks, and when to exit with your winnings.
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