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Several states offer their residents inflation relief checks ranging from $50 to $1,700. If you receive money from the state, you should consider how you will use it and determine the best course of action for yourself and your wallet.
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See also: States with declining economies and states with thriving economies
Here’s what experts say is the best way to use the Inflation Relief Check.
pay off outstanding bills
Aces Advisors investment adviser Andre Jean-Pierre said the bills should be repaid using inflation relief checks.
“Many Americans are feeling budget shortfalls due to inflation because wages have not kept up with the prices of commodities and services. I think, because failing to make payments on your personal credit profile can have a long-term impact on your personal budget. If we can do that, it could reduce the burden on individuals’ monthly budgets.”
Childfree Wealth founder and CFP Dr. Jay Zigmont also recommends using cash inflows to pay bills.
“The first step when you have extra money is paying off your debt,” he said. “Paying off the debt is effectively a risk-free return on the interest that would have been paid. Credit card interest rates are rising, so paying off the debt would save him 20% or more.” There is a possibility.”
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save it
If you have no outstanding bills or debts, some experts recommend saving any relief payments you receive.
“Investing is not better than saving in this market,” says Josh Answers, host of “The Trading Fraternity.” “This may sound strange to many, given that the answer to this question has been the opposite for the past decade, but volatility and higher interest rates have changed things.”
Answers recommends depositing funds into accounts with higher interest rates.
“Shop with a variety of high-yield savings accounts and CDs offered by banks and credit card companies,” he said. “If the Federal Reserve charges a fee near 4.5%, you should try to charge close to that.”
Invest
Consider investing your bailout checks rather than your savings, says Robert R. Johnson, Ph.D., finance professor and CFA at Creighton University’s Hyder College of Business.
“With a long-term view, smart investments are always better than savings,” he said. “Counterintuitively, the biggest investment mistake many people make is not taking enough risks. The surest way to build a true long-term retirement wealth is to invest in the stock market.” .”
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