After much wrangling back and forth and partisan politics a $2 trillion dollar stimulus package was passed the third week of March 2020. As with everything dealing with the Coronavirus everything feels like it’s happening so fast and that we’re just trying to hold on to the seat of our pants. This podcast episode will NOT talk about the politics of this bill. Now is not the time for that. Instead, the focus will be on the very practical aspects of managing what I consider to be a lifeline NOT a windfall. Sooner or later we will pay for that check, I’m just not sure how. This situation has me remembering what it felt like when my mom lost her job in the airline industry during a Recession while I was working part-time at Starbucks and attending graduate school. I was in debt, underemployed and trying to get make it through to the other side unscathed. I still have emotional scars from that experience and it would be a lie to say that I didn’t. But, there are some things to consider as you make decisions connected to your stimulus money. Again, it’s a lifeline, not a windfall for many people who’ve lost income for weeks. Head’s up, I will share some logistics that you may need to walk through before even beginning to cover what to do with your stimulus check.
*In order for me to support my blogging activities, I may receive monetary compensation or other types of remuneration for my endorsement, recommendation, testimonial and/or link to any products or services from this blog. Please read my disclosure here.*
Thinking about starting a blog?
It’s pretty simple to do and cheap! Start with Siteground and WordPress.org. With this winning combination you’ll own your own website by the end of the day. And, Siteground has easy to follow tutorials to help you with setting up your site. Also, don’t forget to grab 120 Awesome Blog Ideas from Ruth Soukup’s Elite Blog Academy today.
Show Sponsor
If you’re feeling overwhelmed by the Coronavirus and talk of a Recession get “The Corona Virus and Recession Planning Kit. From Freaked Out to Back in Control“ available for FREE. If you’re needing some help figuring out what to consider, what to prepare for, and how to stockpile without losing your mind. Michelle is Money Hungry is an empathetic space in the personal finance verse. I’m here to help you, not shame you.
Listen to the Show
Show Notes
- For simplicity’s sake, I’m going to reference $1200 only in this episode. If you are getting larger checks because you have dependents the comments that I’m going to share still applies. Disclaimer-I am not a personal finance professional, do your own DUE DILIGENCE to manage your situation.
- In the next month or so those people who qualify for stimulus checks will begin receiving them either by direct deposit or in the mail. Now is the time to triple check your address and automatic deposit information from your last tax return. Go to IRS.gov and keep an eye out for up to date information regarding this.
- Create a folder with all of the details that you need to keep track of.
- When to file your 2019 taxes
- When bills are due
- Medicines
- Programs that your creditors are running
- Coronavirus Student Loan Relief program, etc.
- Double-check EVERYTHING. Call about your student loans, etc.
- Why do I say in the next month or so you’ll be receiving your money? Because I don’t want you to let your foot off the gas pedal. This is not the time to lose focus on doing whatever you can to stabilize your finances.
- Here’s what you need to consider doing now.
- Actively managing your mindset.
- Taking small meaningful actions even when you feel scared.
- Sit down and work through your expenses. See where you stand and then figure out what your most urgent expenses are. They would always begin with
- Food
- Shelter
- Transportation
- Go through each line item in your budget and figure out if you’re over paying. Here are some examples:
- Accommodation-Maybe now is the time to rent out that extra room in the house. Make sure to vet that potential tenant.
- Clothing-Who is going to see you for the near future except for on Zoom? Maybe you cut that line item.
- Phone-I used to pay $120 a month for my cell phone. Now, I pay $35 a month via Mint Mobile. Bonus: Sometimes Ryan Gosling leaves messages for customers because he now owns it. That’s the gift that keeps giving. However, I’ve used Republic Wireless and Cricket and like those too.
- Transportation-Is it possible to sell your car and purchase a cheaper one?
- Subscriptions-There’s no way I’m getting rid of my Netflix/CBS/Hulu But, maybe there are other subscriptions that I could get rid of.
- Groceries-This one is tricky. I think that a lot of us are going to the grocery store more because it’s the only store that we can still go to so it gives us a semblance of normalcy. I totally get it. Especially after I went to buy a boxes of cookies and ate all of the cookies over the weekend. But, that habit will get expensive.
- Shop once a week with a list. Check out Sprouts/Ethnic Grocers/then big Box stores. I’ve had very few issues getting what I need by doing this.
- Prepare meals that have leftovers and eat those too.
- Use the Ibotta app to save money on your groceries when possible.
- Entertainment-This one is so easy as we’re currently trapped in our houses and can’t go anywhere. Fortunately there are a TON of free activities being shared online.
- Maybe you’re now budgeting online dating?
- Fitness-Thank God for all of the free online classes streaming via Instagram/Facebook pages/and local fitness studios.
- Self-Care-Nails/Eyelashes/Hair-sadly, we can’t go to our favorite salons. It’s now time to D.I.Y. looking forward to all of the bowl cuts.
- Call all of your creditors and see what you can negotiate so that you’re lowering your monthly overhead.
- If you’re applying for unemployment-Spend time working through the rules, what it means, and what your responsibilities are when you’re receiving unemployment.
- Now, it’s time to talk about that stimulus check. It’s $1200. If you have children add $500 per child. That money is to help you get you through the eye of the storm. The question we have to ask ourselves is how long is the storm?
- What we’re currently experiencing is a disruption to the economy and workforce that is accelerating trends that we were already seeing such as moving towards automation for certain tasks.
- If you’re not sure about the stability of your job, save that money.
- Your housing always comes first. You have to live somewhere. This is where Dave Ramsey and I are in 100% agreement.
- Focus on growing your savings as aggressively as possible if you don’t have the savings you would like.
- If your Federal student loans are frozen until September, save that cash.
- See a theme emerging in my comments?
- Save that cash. Lower your overhead. Stay focused.
We’ll get through this. Wash your hands. See you on the other side.
Latest posts by Michelle (see all)
- How Work Policies Against Black Women Birthed a Love of the Soft Life - 20 March, 2024
- How Taylor Swift’s IP Victory Could Change the Business of Music - 28 February, 2024
- Why Don’t More Personal Finance Content Creators Talk About Policy - 16 January, 2024
Its time to get (financially) lean and clean! Okay, cleaner maybe a better term but it just isn’t as snappy. I have Cricket I have to check out Mint Mobile, I mean if Ryan owns it, I have to check out what he is investing in. That is what I’ll be telling myself.
LOL! I really like it so far. BUT, do not get the Samsung Galaxy S6, it’s a buggy phone (software)