With recent changes in consumer habits, the economy finds itself in an unpredictable position. If the HEALS Act passes, and another round of stimulus checks are distributed among taxpayers, many Americans are left wondering: should I save my money and plan for the future or spend the money to give the economy a boost?
What Is the HEALS Act?
The CARES Act, passed back in March of this year, sent a round of stimulus checks of up to $1,200 to individuals earning $75,000 per year (and $125,000 for joint filers) or less. Though no other act has been passed through Congress during the pandemic, there is one act pending further discussion that we all need to be aware of:
- In late July, the Senate introduced its own plan, known as the HEALS Act, which is still under debate.
The HEALS Act is comprised of several bills, covering individual stimulus checks, as well as other incentives or bonuses in an effort to help boost the economy. Some items include back-to-work bonuses, continued enhanced unemployment benefits, and tax credits.
Who is Eligible for a Stimulus Check?
CNET’s comprehensive chart helps break down the differences between the original CARES Act, the HEROES Act (an act proposed in May 2020 but was never voted on in the Senate), and the proposed HEALS Act. It’s important to note that the final proposal may have details pulled from both the HEROES and HEALS act.
Each of the proposed acts would repeat the CARES Act stimulus checks, with some slight differences in the amounts sent for dependents. So, now the question remains if and when we receive a stimulus check, what should we do with the money?
When to Plan for the Future
First and foremost, it’s important to take care of your personal financial situation. If you’re unemployed or tentatively employed, for instance, the best thing to do is stay on budget and put any bonus cash toward your essential items: food, housing, utilities, and transportation.
If, on the other hand, you’re employed, you may benefit from putting your stimulus check towards managing personal debt (i.e., credit cards, mortgage, student loans, etc.) to pay it off faster.
How to Help Boost the Economy
If you’re in a position to spend some extra capital or decide you want to use your stimulus check to help support the economy, it may be best to spend that money at a small or local business. As 70% of the economy is consumer spending, any money you put back into the economy will help mitigate the effects of the drastic changes from the pandemic.
As the world continues to change at a rapid pace each day, it can feel overwhelming to know where to invest your money to ensure a secure future. At Focus Financial, we’re here to help you navigate the complexities of your current financial situation and keep you informed, so you can make the best decisions that will benefit you today, tomorrow, and during retirement.
Contact us today to meet with an advisor who can help!