Good Day Wealth Builders,
As the title states above, we will offer some tips and ideas of how to use the unexpected income that was released to many in the country this week, the stimulus check deposit.
First, let’s flesh out the basics. Each American adult had the opportunity to receive $1,200.00, and if you are married, that is $2,400.00 dropped into your household budget. If you have dependent children, that would be an additional $500.00 per child. You can do the math for how much additional income that will be for you and this blog will be for those who either have received or will receive these funds shortly.
As stated in the video sent out to Facebook from DNA Financial a few weeks back, if you have immediate essential bills with creditors that are unwilling to work with you, pay them first so you do not fall behind with them. The bills in question would be your Mortgage or Rent, Car Note and Utilities.
However, if this money is free and clear, you have to think multiplication. Rather than spend away and have little to show for it, let’s talk about how you can make this stimulus money work for you.
Look to invest in money making assets such as stocks, bonds and property. Also consider paying down some of your debt, to free up some of your monthly cash flow which can also be used toward future investments. Another option is to save toward future financial goals, or use this money toward your emergency fund, which at minimum should be $1,000.00, and at best should be built to withstand anywhere from three to six months without income in order to keep cash on hand, and also to save from running up the credit cards.
At the time of this blog, we are quarantined in a constantly changing definition of normal, but in spite of the tragedy around us, there is an end date for this unprecedented situation. It has been proven in the past that opportunities arise from financial market turmoil and those in the best position to take advantage of a weakened economy profit greatly. All of us who consider themselves wealth builders must start planning toward coming out on the other side of this thing better than we went into it. This is not just free money, it should be seed money, and where you plant it will determine how it grows and for whom.
· Look to invest in money making assets
· Pay down some of your debt, to free up monthly cash flow, which can also be used toward future investments
· Save toward future financial goals
· Use toward your emergency fund, which at minimum should be $1,000.00, and at best should be built to withstand from three to six months without income
Founded in 2015, DNA Financial Services LLC has pledged to Educate, Empower and Equip the financial DNA of its’ clients now and for generations to come. The company offers a number of financial services including tax preparation, bookkeeping, personal and business financial coaching. These services have been designed to bridge the gap in wealth building and functional money management, while promoting financial literacy for people from every walk of life.