The $2,000 Stimulus Check

What would you do with a $2,000 stimulus check?

The politics of money has households thinking about the expectations created by the White House's talk.

Bigger issues are involved, too.

• The U.S. has debts to pay, and the interest costs on these debts are high.

• Random stimulus dollars from the government create more reliance on the government.

• There will be a group of elected officials that defines the line above which a household receives nothing.

My prediction:

Personal finance writers will take one of two tacks with their articles. Either they will write about how you should use the check to pay down credit card debt and other personal loans, or the money should be saved. This will be followed by the ever-present compound interest calculation about how much money you will have at retirement if you just save $2,000, put it in the market for 40 years while earning a 10% return. That’s $90,518. BTW, the market earning 10% for certain never happens.

My Recommendation for You

Your decision how to handle an unexpected influx of dollars is yours alone.

It is undoubtedly true that if you have unpaid credit card debt and an interest charge popping onto your monthly statement, taking extra funds and getting rid of it is a great financial decision. Gives you a chance to come clean financially.

It is also true that a bad decision would be taking your stimulus and framing it as “house money,” then gambling because it will eventually go away. These aren’t just my endpoints on a range of recommendations. They are about it.

Otherwise, spend or save as you prefer.

So what about you? If you found yourself with a $2,000 check in hand, what’s your move?

If you’re up for it, drop a comment.

Reading how others approach money can be valuable!

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