Admittedly, I didn't think the $1.9 Trillion bill just passed was needed. I say this because the economy has been opening up and on the rise without this additional stimulus. This Bill really reads like mostly pork and favored persons payback but hey, all politicians do it so at least it's an even playing field of sin and debauchery.
The $1400 stimulus payments are needed by some for the basics of food & shelter. When that gets spent, what happens next? My guess is that some form of Universal minimum pay benefit will get passed by the Dem controlled Congress. We are fast on our way to Bernie's utopia. Weeee!
For those who get the $1400 and don't need it for the food and shelter basics, I suggest reducing debt. Bring down that credit card balance, make an extra mortgage or auto payment or stock up on food and water for the apocalypse. Sure, these aren't fun per se, though finance geeks like me might think so, but they are sensible. You could also invest the extra found money adding to your IRA or opening your first. For me, I'll be giving it back by applying it to my 2020 tax bill, though probably won't get it anyhow. I'm happy about that.
I've witnessed the PPP loans, EIDL Loans and the stimulus help people so I am not totally against it. What does concern me is the printing of the money and increasing National Debt and the inevitable rise in real inflation. It looks tame on the surface but it's present if you look a little deeper. Inflation kills those on fixed incomes mostly the retired seniors but also those struggling in the lower realms of our income strata. People making 6 figures will feel it a little but the truly wealthy will likely profit from it in one way or the other. The rich long ago wrote the treatise on never letting a crisis go to waste. If things ever got seriously bad, the rich just move. I hear St. Bart's is nice.
Take a moment to consider how you will spend this new stimulus and if you decide upon using it as fun money, so be it. Being responsible for your decisions and their results is part of Freedom. I support you.
Best,
Donn Marier
DM-Your Own CFO