In this video, I’m going over 4 ways that I personally recommend YOU to spend/grow your $1200 stimulus money! Now, the government intends the money to be used for necessities such as housing, rent, food, etc. But is that the best way to use it?
For most Americans, I personally do think that we should all air on the side of caution right now. Stocks are the most volatile they’ve been in many many years, people are losing their job left and right, and we have no idea how much longer this recession will keep up.
As a result, I’m encouraging you all to take a look at your current financial situation, and make the decision yourselves. I will present 4 ways you can use the money, and of course these are all very different and the priority should always depend on your situation.
For starters, I recommend anyone that may be having trouble making payments in the next half year or so to use the money as an emergency fund. The last thing you want to do is not be able to pay for every day items! Sure the government is creating many new programs that will help with loans, but you should still just resort to those if they are needed.
We also do not know what may happen to your job in the next year, so it is a good time to be safe.
I do recommend people to keep their money in an online savings account, because this will shield your money from the volatility of the stock market. Sure, you could possibly make a lot of money in the stock market now, but you could also lose a lot. For American’s living closer to paycheck to paycheck, now is not the time to try and grow your money in the stock market.
For Online savings accounts, I recommend Ally because it’s just what I’ve always used, and it has worked great for me so far. They are currently paying 1.5% interest, which is pretty great and helps curb inflation. It’s also a good place to put money and not see it (tempted to spend it) since it is separate from your everyday checking account.
I also prioritize investing in yourself. If you are working from home or have been laid off, now is the time to start building skills that you didn’t have time to learn before! I guarantee every $1 you spend on books, FREE online info, podcasts, mentorships, etc will lead to 10-100X return. If you don’t come out of this quarantine with new, highly valuable skills, that means you did not spend your time wisely. Just my two cents!
Lastly, if you want to invest. Please be careful. Marginalized trading is risky, and even buying traditional index funds and stocks is risky in the short term. In the long term, I think now could be a great time to buy.
Thank you for watching, and I hope you gained some useful information from this video! Make sure to hit the like button, and also stay up to date with my future videos by clicking on the subscribe button.
Stay blessed and see you in the next video.
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