The Morning Surprise: A Stimulus Check!
I woke up this morning to find the $1200 stimulus check from the IRS was direct deposited to my bank account.
Once the excitement subsided, I went about enacting a course of action that I planned weeks ago since I found out we were going to get this money.
I used $100 to buy a stock of a company I am trying to take over in the near future.
I then put $100 to my Vanguard S&P500 Index mutual fund.
The remaining $1000 I am putting to my Ally Bank savings account to save toward buying a house once this coronavirus hoop-dee-ha is over.
And there you have it ladies and gentlemen, the boring and unsexy thing I did with my $1200 stimulus check.
But Wait, Shouldn’t You Spend It All?
When I told one of my friends my plan, they said, “That’s bad. It goes against the point of the stimulus check. You’re suppose to spend it to stimulate the economy. If everyone thought like you, we wouldn’t get anywhere.”
And while my friend has a good point, I technically now have the property rights to do whatever I want with my money so he can go F himself.
But I didn’t tell him that.
We kept talking.
We talked about how some people are going to use their stimulus check to pay their rent but I brought up a point that in the New York City metropolitan area, rent can start around $2000.
So a $1200 doesn’t cover rent.
However, if you go 5 hours north of New York City, rent is about $300-$400 a month.
So that $1200 check can help pay for rent in that case.
Not to mention if you live in The South, Florida, or The Midwest, this $1200 can help with a couple of months of rent as well.
So the stimulus check disproportionately helps out some people in certain geographical areas, but doesn’t help much in others.
Which is why if it can’t go toward rent, I understand why some would use it to stock up on groceries, alcohol, or any miscellaneous stuff.
What One Friend Is Doing
One of friends is going to be putting most of the money toward paying off his credit cards.
Which makes me think that a lot of Americans are going to be putting this money toward paying off their debt.
Another friend is going to be using it to stock up his liquor cabinet.
I think one of my other friends might be saving the $1200 for a trip to Thailand or EDM concerts after this corona thing is over.
So In The End, What Should I Do With My Stimulus Check?
Hey, it’s your money.
You do with it what you will.
But I understand your moral quandary.
Should you use it to better your:
financial situation? (pay down debt, invest, savings etc.)
home or physical situation? (home improvements, buy toys, games, etc.)
spend it all on experiential things like eating out and alcohol?
silly fun things you’ve always wanted but never had the chance to buy?
I don’t have an answer for you.
The point I wanted to get across was to not get carried away with this free money and spend it willy nilly without thinking of making smarter choices that might benefit you later down the road.
During times like this (times of free money being given to me), I remember Robert Kiyosaki, author of Rich Dad, Poor Dad, saying something like if you give money to ten people, four of them will use it and end up deeper in debt.
Four of them will spend it and end up the same as where they are now.
The last one to two people will use it to become richer.
I plan to be in the last part of the group of people.
Counting My Blessings During Times Like These (as some would say, privileges)
I’m blessed that I am able to live at home with family and pay really low rent.
I’m also blessed that my food costs are minimal because I live at home with my family.
I’m also blessed to be working in an essential business during these times so I still have a job to do when I wake up in the morning (and still have an income).
I suppose I will just keep on doing boring and unsexy things until this coronavirus thing is over lol.
For more info, you can go right to the IRS website directly.
Here is their website talking about the “economic impact payments” AKA stimulus checks.