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Personally Managing My Stimulus Check | DiviMonopoly

Image of How I'm Spending My Stimulus Check - DiviMonopoly

I just recently filed my tax return this past week and I'm excited at not only receiving a tax refund, but also a stimulus check. As some of you are aware, the US government is handing out a third stimulus check of $1,400 to Americans in order to stimulate the economy and help struggling Americans. Many Americans are in dire straits and I've recently had the liberty of chatting with some of my coworkers who are working to make ends meet. One of them used 3/4 of the check to pay off an electric bill. Some others use the cash to buy extra gaming parts. Here is what I'll be doing with the stimulus check, and in my opinion, what you should be doing with the money when you receive it.


Invest 30% of it in stocks, bonds, and crypto:

At this point, I am staying disciplined to my strategy of paying myself first and that includes any type of income that I receive. This is to ensure that I grow my portfolios and multiple streams of income. 30% of the checks will go towards three main portfolios:

1) M1Finance - To dollar cost average into profitable companies with increasing dividends

2) Webull - To grow my portfolio through swing trading

3) Coinbase - To grow my assets with crypto trading

Check my LinkTree to see all of the different flows of income I am growing to get started!


Pay off some debt:

After paying myself off first by depositing my first 30% of income towards all of my investing endeavors, I pay off my debt. Every single time I earn a paycheck or any large sum of money, I allot a portion of it towards decreasing my debts till they are all gone. They have been compounding significantly and I'm excited to share with you the results of my labor at the end of each month in a report! Check out last month's February Month-end 2021 Debt Report here: http://www.dividendraptor.com/2021/03/february-2021-month-end-asset-report.html 


Save the Rest in Cash

After this has been all said and done, I park the rest of the money in cash. A significant portion of income goes towards automatically preset transfers towards things such as my Yotta Savings Account (which accrues interest income!), Vanguard Roth IRA, and a College 529 Savings Plan (knowledge is wealth!). 

I do spend some money on myself, but most of them are all geared towards exciting new ventures that I plan on starting in the future. So I minimize the outflow of cash towards those expenses as lower than the inflow of cash that I receive. In this way, I manage to create an abundance of cash each and every income cycle to protect myself from a rainy day. 


In Summary:

This is my plan for spending my stimulus check, and any income check that I receive. If you've been keeping track of my journey, you can see how I have steadily compounded my growth from $9 in asset value back in November of 2020 in my M1Finance portfolio to what it is now (Over $4,300 in AUM).  By doing this, I am not only taking advantage of the time-value of money, but I am also decreasing my debt levels at the same time. By doing so, I am compounding the idea of positive interest income and negative interest income (debt) by paying myself first. 

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