Dalelorenzo's GDI Blog
19Mar/210

Ignore Dave Ramsey. 5 Ways $1,400 Stimulus Check Can Change Your Life

Did you wake up on St. Patrick’s Day to a higher bank account balance courtesy of the $1,400 stimulus check? If so, Dave Ramsey has a message for you: You really don’t need that check.

Ramsey faced assessment for his comments on Fox News in February. Here’s what the personal finance radio host said: “I don’t believe in a stimulus check because if $ 600 or $1,400 modifies your life you were pretty much fastened once, ” Ramsey said. “You get other issues going on.”

Of course, it’s easy for a multimillionaire like Ramsey to ignore just how big a distribute added cash is when you’ve lost your job or you’re living paycheck to paycheck. Now are five courses you can use your $1,400 stimulus check to change your life.

5 Life-Changing Ways to Spend Your Stimulus Check

The following five policies won’t change your life overnight. They won’t give you the instant gratification you’d get from making a big purchase. But they can make a meaningful change, particularly if they inspire you to start a new dres, like investing or saving a percentage of your monthly income.

1. Pay Down Credit Card Debt

The average credit card costs you more than 16% every year in interest. By pay the monthly minimum, usually anywhere from 1% to 4% of what you owe, you’ll barely make a dent in your balance.

If you made a one-time $ 1,400 remittance toward your credit card debt, you’d lower your monthly minimum. But here’s where your stimulus check becomes a game-changer: You impede making at least the same monthly payments that you did before you paid the additional $1,400.

Let’s suppose you have a $ 5,000 symmetry on a card with a 16% APR. Your monthly minimum fee is 3% of your counterbalance, or $150.

You reduce your match to $3,600, so your 3% minimum fee fells to $108. You restrain $150. That means an extra $42 going toward the principal , not the interest.

You’d be debt-free 15 months sooner and save nearly $900 on interest. You then have an extra $ 150 liberate up to put toward your other fiscal goals.

Once you’ve paid off your match, keep the account open. Having open credit accounts is contributing to remain a good credit orchestrate -- which raises us to another case of Dave Ramsey suggestion to ignore.

2. Establish an Emergency Fund

You never realize just how life-changing an emergency fund is until you actually have an emergency. But a three- to six-month emergency fund can take times to build, especially if you’re living paycheck to paycheck.

A sudden cash infusion of $1,400( or more if you have relatives) could be a great jumpstart for your disaster money. Even if you can only afford to add a few dollars a week moving forward, you’ll have a buffer against the unexpected. That $1,400 could maintain you from going behind on rent if you lose your job or help you bypassed blaming a surprise medical bill to a credit card.

3. Invest It in an S& P 500 Index Fund

With S& P 500 index funds, you automatically invest across 500 of the largest business in the U.S ., including Apple, Amazon, Facebook, Johnson& Johnson and Disney. If you’d vested $1,400 in an S& P 500 indicator money 30 years ago, you’d have over $22,000 today.

Will $ 22,000 change your life? Probably not, though it could certainly make for a nice retirement savings boost. But the real magic happens if it kickstarts a lifelong investing habit. If "youve added" really $100 a month for 30 times, you could have over $ 226,000 if you made normal annual returns only reticent of 10 %.

Note that investing your stimulus check is only a good move if you’re on top of your invoices and you don’t have a credit card balance or other high-interest obligation, like payday lends. You should also have an emergency fund before you expend. The stock market can be volatile in the short term. Without savings, you risk losing money if you have to cash out your investments when stocks are down because you can’t afford a surprise expense.

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4. Put It Toward Your Down Payment Fund

No, an additional $ 1,400 isn’t going to score you your dream home. But in most real estate markets across the U.S ., it’s a highly competitive seller’s market. If you’re trying to buy a home, every additional dollar you can put toward a down payment or earnest money( a deposit you put down when you enter into a contract) will determine your furnish more competitive.

5. Boost Your HSA Contributions

If you have a health savings account, you likewise have a high-deductible health plan. In 2021, the minimum deductible under these plans is $1,400 for individuals or $ 2,800 for class. That means you’ll commonly have to pay at least $ 1,400 or $2,800 for pedigrees before your health insurance kicks in, though some preventative caution, like an annual scrutiny, is covered at 100% before your deductible.

Conveniently, you’ll probably get at least $ 1,400 if you’re single or $2,800 if you’re married from the third largest stimulus check. Using that money to increase your HSA contributions is a smart bet so you can cover your deductible if you have a major medical expense.

Robin Hartill is a guaranteed financial planner and a major writer at The Penny Hoarder. She writes the Dear Penny personal finance opinion article. Send your dicey money questions to AskPenny @thepennyhoarder. com.

Related posts

https :// www.thepennyhoarder.com/ taxes/ stimulus-child-tax-credits /

https :// www.thepennyhoarder.com/ taxes/ pay-tax-bill-you-cant-afford /

https :// www.thepennyhoarder.com/ taxes/ biden-unemployment-stimulus /

https :// www.thepennyhoarder.com/ taxes/ how-to-track-coronavirus-check /

https :// www.thepennyhoarder.com/ taxes/ is-unemployment-taxable /

This was originally published on The Penny Hoarder, which improves millions of books worldwide make and save money by sharing unique job opportunities, personal floors, freebies and more. The Inc. 5000 graded The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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17Mar/210

Financial Freedom Update (Q1) 2021 – First Update of the Year

Welcome to the Million Dollar Journey 2021( Q1) Financial Freedom Update- the first update of the year! If you would like to follow my entire fiscal pilgrimage, you can get my informs addressed directly to your email, via Twitter and/ or Facebook. For those of you new here, since achieving$ 1M in net worth in June 2014( senility 35 ), I have changed my...

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9Mar/210

Why India must make Google, FB pay for content

As the world’s largest democracy, as its second-largest online market, as a soon-to-become fastest growing major economy, India should have taken the lead on moving Google and Facebook- two alarmingly prevailing world super-monopolies- repay a fair share of earnings they perform from domestically produced news content on the internet.Even more so because, first, India’s government has demonstrated it is perfectly willing to take on Big Tech on numerou other figureheads and, second, it has made atmanirbharata( self-reliance) its economic program mantra. A gigantic democracy with growing internet market power run by a government that champions regional enterprise and can get tough on world participates is just about the excellent candidate to be a key player in this fight.But it was Australia that made the lead-in. A rule that’s almost certain to be passed by its parliament will impose payment indebtedness on Big Tech. And Australian PM Scott Morrison was entirely right to call for a global alliance of democracies to construct Google and Facebook pay much more for word material they profit from.Some other democracies have made a few stairs or half paces. Led by France, European countries have started determining rules and launched investigations. Discussions on remedial activity are collecting momentum in the US. So far, there’s nothing in India. Even though , nothing could be clearer than the example for realizing Big Tech spit up more fund to democratic India’s news content publishers. Let’s explain it simply, site by detail: Plausible, fact-checked news is a bedrock of republic. This should be self-evident. Imagine waking up one morning and finding out that tweets, posts and internet videos by just about anyone , none of whom has a reputation to protect or responsibility to adhere to or is bound by laws, is your ONLY source of story. How will our republic exist that? It can’t.Producing credible report takes fund, a lot of fund. Reporters have to be trained and paid. A big report gathering infrastructure has to be paid for.The internet has become a major distribution channel for word, like it has for so many other things. But two companies dominate internet traffic for word. Around 80% of external traffic to story websites is carried by Google and Facebook. Also, news is a big source of traffic for internet behemoths. Around 40% of trending queries in Google are news related.Now, because Google and Facebook dominate internet traffic, they take away a huge share of advertising revenue- between 70% to 80%- that comes from digital consumption of story. As digital dispensation of news stretches, and therefore, income from other distribution representations comes down, the current internet model for bulletin leaves fewer and less revenue for publishers.Remember, while this is happening, the cost of producing plausible news is not coming down. So, story publishers has become more and more constricted over time.So, what happens? Domestic, reputable publishers who have painstakingly constructed a report symbol over decades start challenging an unsustainable business model. As the country’s news industry flinches, the dissemination of information regarding plausible word comes under threat. And then we face the prospect of a republic where bulletin is what trolls on Twitter say it is.Now think of a situation where Google and Facebook are by law or regulation obliged to pay a bazaar share of earnings from digital delivery of story. This is what will happen 😀 omestic bulletin manufacture, vital to India’s democracy, is financially viable. Because its revenues from digital news distribution increase.Hundreds of thousands of jobs in the news industry are saved over time in a country where increasing the proportion of white collar employment is a critical goal of public policy.The government comes more tax revenue because it is far easier to collect tax from the domestic news industry than from multinational tech companies.This is the proposition Australia’s proposed law is based on. Its government wants the information publishing business to be financially viable because it knows Australian democracy needs a viable Australian news media. That’s why France and the UK, Germany and Spain have started taking on Big Tech. And this is why India’s government must act, too.And India has one advantage as a late starter. It has been noted that concerted government war can unbend global super-monopolies. In Australia, Google is inducing is working with individual publishers. Facebook, after a inessential blackout of news, is seeking to renegotiate. And modifications of the Australian statute are a tower threat both tech beings now face across democracies.India can- and must- start acting on its own version of a statute or an appropriate set of the rules of procedure. And once it does, because of its current busines size and future market potential, there’s no way Google and Facebook can simply discount what’s being done here.How can the government start the process? There are currently several options. The Competition Commission of India can start a suo motu investigation. Or the information and broadcasting ministry can be the agency that kickstarts the process. For example, it can call for, say, a 45 -day consultation period asking for inputs from all stakeholders. And then placed a time frame for drafting a bill, as Australia did.Some professionals hint the government can down the line set up a new digital busines to tackle all complex issues, including those involving news publishing, arising out of dominance of Big Tech. Others intimate looking at the Copyright Act for options on imposing licensing cost for content, roughly the itinerary France has taken.Therefore, there’s plenty the government can do, and do swiftly. The world environment has finally turned. Big Tech is on notice in other republics for destroying the viability of independent journalism. It must be on notice in India, too. An atmanirbhar India needs an atmanirbhar news industry.

Read more: economictimes.indiatimes.com