So we finally received another stimulus check. What do you think of receiving $600? Is that enough? I think it says several things actually:
- Our country is broke. In 2019, the federal government in its latest budget has estimated that the deficit will be $1,092 billion. This means the U.S. spends much more than it brings in. As I Type this, the total U.S. national debt is $27 TRILLION dollars. The more money printed, the more the deficit grows. To see the budget deficit in real time, click HERE.
This chart says it all. As a nation, we are spending much more than we bring in.
And to make matters worse, we owe trillions of dollars:
So thanks to this stimulus package, we have added even MORE to that debt. For many people, the trillion dollar question is HOW do we pay this MASSIVE debt back? Many people (including myself) believe it will NOT be paid back. As a result, this could have a tremendous impact on our economy.
2. We won’t get another check any time soon. It’s been months since we received the first check, which was $1200, now it’s reduced by half. How far will $600.00 go? This seems like a clear indication that there won’t be much help for us going forward.
What Do We Do?
Once we analyze the situation, it’s time to focus on strategies going forward.
It’s time to focus on taking care of self. If the powers that be really wanted to help us, would they give us more money, and give it to us more often. Other countries have provided generous packages to their citizens, but not the U.S.
One way to take care of self is by creating multiple streams of income and passive income. Far too many of us are waiting on the government to help us. As we can see, it may be months before they provide assistance. By creating multiple streams of income, you give yourself several income streams. As a result, if one income stream lags, you have others to pick up the slack. In this video, I discuss the importance of passive income for retirees:
The rationale here is simple: you may want to work, but can’t. A person may be too ill to work, unable to find a job, or retired and simply unable to. Today, many people want to work, but thanks to covid, jobs were forced to shut down, which caused people to lose out on earning a paycheck. Unfortunately, the bills keep coming, and now millions of people are waiting on the government to help.
But once again, how far will that $600 take us?
Use that money to buy assets. Instead of buying items that lose value (such as clothes, video games and cars), we must looks into buying items that retain their value or can generate revenue. This is especially important now, because as the government prints more money, the purchasing of that dollar could decrease, making products more expensive.
In other words, items you can buy with that stimulus money today may be too expensive some time in the future. Examples of assets that retain value and/or generate income include the following:
- Precious metals (gold and silver)
- Real estate
- Fine art
- Real estate/rental property
- Vending machines
There are many other examples of assets that retain their value, but I do NOT count paper assets in this category. Why? because if the value of the dollar falls, those paper assets will lose value. that includes stocks, bonds, and REITS.
No one knows what will happen in 2021 and beyond, but the key is to stay watchful and aware. We must be proactive and make sure we protect ourselves from future uncertainty. Learn about various investment strategies in my book Invest For Success: Millionaire Wealth Strategies Not Taught in School. In addition, sign up for our next class at the Yes We Did Virtual Learning Center, Invest For Success: Winning Wealth Strategies Not Taught in School. Knowledge is power!