Forum Thread

Invest Your Stimulus Check If You Can


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  • TheBiggerBoat
    2020-06-17 07:28:48 PM
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    The first round of stimulus checks have already gone out and, unfortunately, many had to use that money almost immediately. With how confusing and scary it was at the time of the first round stimulus checks, this money was used as a lifeline for many people to use on groceries, bills, mortgages or rent. Alot of people who received the checks didn't have the opportunity to look at that money in any other way than as something that was just enough to get them by until things get back to normal. Though if you had the opportunity to invest your first stimulus check, count yourself very lucky.

    But now that things are opening back up and people are getting back to work, you should highly consider looking at the second stimulus check as an opportunity for the future. The second check isn't exactly approved just yet, but with everything as it is right now I'd assume it's coming in due time.

    If you weren't affected by this whole situation in a financial way and it's at all possible to invest the money instead of immediately using it, do it. Try not to look at the check as free money, rather an investment opportunity that you earned. It would be perfect to put the money in something like bonds or index funds if you're new to investing. You could also use the money to pay off some loans or credit cards. Anything is better than using it for something you don't need, like a TV or new lawn furniture.

    Either way, my point is to think a bit beyond the now with the cash. Try not to use the money on something you just want today. Instead, use the money to make your future better.

  • DollarsnCents
    2020-06-17 07:40:25 PM
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    This is a good idea, and I've seen it suggested once or twice. Agreed, if you weren't affected financially by current situation, and you do not have any other pressing financial burdens such as credit debt, I would definitely use the money to invest. Otherwise, that check could knock out a good chunk of credit card debt, loans or back taxes.
  • WyattTown
    2020-06-18 04:10:40 PM
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    It is good advice, even though the whole point of 'stimulus' is to stimulate the economy by spending it and letting it circulate through. But yeah my advice on an individual level is the same as yours, invest it and save it, assuming you don't have debt. If you have debt accruing interest, and you don't need the stimulus money for just pure survival, put it toward the highest interest debt above all other options.
  • Old Sport
    2020-06-19 02:35:15 PM
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    I agree that investing as much of your stimulus check as possible is a great thing to do, but unfortunately I don't think it's a realistic option for many people and families right now.

    A study from Northwestern University found that:

    "Those in the lowest income group, who earned less than $1,000 per month, spent about 40 percent of the checks in the first ten days. That was twice as much as the highest income group (those making over $5,000 a month), who spent closer to 20 percent in that brief period."

    They also found that people who fell in lower-income groups spent the vast majority of their stimulus checks on necessities like bills and food.

    "People spent their stimulus checks on a range of items and services, with spending increasing meaningfully in nearly every category. In each of the three days following check receipt, individual spending increased by between $50 and $75 for food, household items, and bill payments, including rent, suggesting that many people were using the funds to obtain necessities and catch up on bills."

    That's not to say that investing your stimulus check is a bad idea, because it is not. What's unfortunate is that the people investing their stimulus checks were and still are better off financially than those who spent it all within the first or second week of getting it.

  • The Big Burry
    2020-06-19 07:37:40 PM
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    My wife and I are in the middle of remodeling our home, so we decided to support a local appliance store and use our check towards new kitchen appliances. Thanks, Uncle Sam!

    However, if we weren't remodeling our home I'd be right there with you and would have invested all or most of our check.


  • BlankCheck
    2020-06-23 05:51:14 PM
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    The Big Burry Wrote:

    My wife and I are in the middle of remodeling our home, so we decided to support a local appliance store and use our check towards new kitchen appliances. Thanks, Uncle Sam!

    However, if we weren't remodeling our home I'd be right there with you and would have invested all or most of our check.

    This is a good idea as well. I would put making necessary home repairs and upgrades on the top of the list, especially if you were to upgrade your heating and ac units. We take them for granted until they break on us, and it can be quite unpleasant when they do. Maintenance is definitely key there.
  • Hongocduc1972
    2020-08-02 05:48:43 PM
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    TheBiggerBoat Wrote:

    The first round of stimulus checks have already gone out and, unfortunately, many had to use that money almost immediately. With how confusing and scary it was at the time of the first round stimulus checks, this money was used as a lifeline for many people to use on groceries, bills, mortgages or rent. Alot of people who received the checks didn't have the opportunity to look at that money in any other way than as something that was just enough to get them by until things get back to normal. Though if you had the opportunity to invest your first stimulus check, count yourself very lucky.

    But now that things are opening back up and people are getting back to work, you should highly consider looking at the second stimulus check as an opportunity for the future. The second check isn't exactly approved just yet, but with everything as it is right now I'd assume it's coming in due time.

    If you weren't affected by this whole situation in a financial way and it's at all possible to invest the money instead of immediately using it, do it. Try not to look at the check as free money, rather an investment opportunity that you earned. It would be perfect to put the money in something like bonds or index funds if you're new to investing. You could also use the money to pay off some loans or credit cards. Anything is better than using it for something you don't need, like a TV or new lawn furniture.

    Either way, my point is to think a bit beyond the now with the cash. Try not to use the money on something you just want today. Instead, use the money to make your future better.

    ]
  • therealsatoshi
    2021-03-19 07:35:41 PM
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    I imagine this 3rd round will have more investing than the previous ones. Blue chip stocks, maybe gold, digital currencies, anything that can net them returns. Sucks that interest rate accounts basically won't exist for the next coming years.
  • TheBiggerBoat
    2021-03-27 02:56:28 PM
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    Anyone start to make some profit on their first or second stimulus checks yet?
  • therealsatoshi
    2021-03-27 07:24:41 PM
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    TheBiggerBoat Wrote: Anyone start to make some profit on their first or second stimulus checks yet?
    Yessir. Invested in satoshis. Wink
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