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  • Bob Brooks

What Should You Do With Your Stimulus Money?

Within the next few weeks, the US treasury will be sending stimulus checks to those who qualify. Most adults will get $1,200, although some would get less. For every qualifying child age 16 or under, the payment will be an additional $500. It all comes down to socialism opps.... I meant how much money you make. Here is a description from the New York Times

"It depends on your income. Single adults with Social Security numbers who have an adjusted gross income of $75,000 or less will get the full amount. Married couples with no children earning $150,000 or less will receive a total of $2,400. And taxpayers filing as head of household will get the full payment if they earned $112,500 or less.

Above those income figures, the payment decreases until it stops altogether for single people earning $99,000 or married people who have no children and earn $198,000. According to the Senate Finance Committee, a family with two children will no longer be eligible for any payments if its income surpassed $218,000."

Link to Article

So what should you do with it?

Should you pay down debt? - ultimately but not right now

Should you invest it? - Unless you are ready for a wild ride, cash is better on the sidelines for now.

You can't take a vacation. It would be counterproductive just to spend it.

Then what should you do?

Add to or start an emergency fund. If there is anything that this pandemic has taught America is that not having an emergency account is a risk you can't afford to take. The biggest problem with most business owners is the lack of cash reserves. Cash reserves or a well-funded emergency fund is key to surviving rough financial times.

Nothing is exciting about putting money in an everyday old savings account earning pennies. Well, that is, until you need it and then it is liquid gold.

So let's all learn something useful from this mess. Be intentional and start building that emergency account. Think of it as building your very own bailout plan.

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