The government is going to be giving out stimulus checks to combat the 2020 recession. How much money will you receive, when will you receive the stimulus checks, and who qualifies for the stimulus check? Watch the video to find out. A Fed official has warned of 30% unemployment, which, to put it in perspective, is higher than the Great Depression.
Some predict the economy could contract more than 30%, in a quarter, which is substantially more than in any time period during the Great Recession.
We aren’t allowed to go anywhere or do anything. But here comes the government with a nice little check, though not much a consolation if you lost your job but better than nothing.
According to the Wall Street Journal, "The legislation will provide for one-time checks worth $1,200 to many individual Americans and $2,400 to married couples, with $500 extra for each child, with the assistance capped above certain income levels, according to lawmakers."
The stimulus checks will be based on your 2018 or 2019 tax return.
Eligible individuals will receive the funds electronically if they previously authorized refunds to be delivered to them that way. Otherwise, they will be sent out via postal mail.
So what should you do with this stimulus check?
1. Create an emergency fund. We don’t know how long this will last. Check out my other videos for good banks to use.
2. Normally, if you have credit card debt, I would highly recommend paying it off right away, since the interest rate is so brutal. But here, you may be able to waive interest and late payments. I would only recommend doing this if you ABSOLUTELY NEED TO. Because you still need to pay it back.
3. Mortgage payments: If you have a mortgage you may be able to defer payments for up to 12 months if you are impacted by the recession. But be warned, you need to pay these eventually.
4. If you have the means and you have a secure job, consider investing now. Stocks are way off their highs. Buy a broad based index fund and hold on for a long time. Stock market investing can be a great way to increase your wealth substantially.
5. If you can, I would recommend helping out local businesses if you have the means by buying a gift card or getting takeout.
Be optimistic. We will get through this. We always do.
What will you be doing with your stimulus check? Comment below.
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Disclaimer: this video is for entertainment purposes only. This is not financial or legal advice. Make your own decisions.
#stimuluschecks #recession2020
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