Investing & Growing Your Stimulus Check 10x+
- Adam Herod
- Mar 23, 2021
- 3 min read
Find out how some will grow their stimulus checks by 10 times or more with some simple investing tips below!
When it comes to stimulus checks, prioritizing bills, credit cards, loans and emergency savings are ideal
Next, selecting a broker and ETF fund can get your money growing
With time and consistent investing someone could turn $1,400 into over $100,000
See below for more!
Priorities First
Before you invest a penny of your stimulus money, it's important to make sure you've paid down credit cards, private loans and/or student loans and any other bills weighing on your personal portfolio.
Need to shore up your emergency fund? Make the above priorities, first!
It's likely that if you're reading this you already had determined those needs, so if you used part of your stimulus to shore up an emergency fund or pay down a credit card I'll include some projections with smaller dollar amounts below.
Let's go!
Step One | Select a Broker
Maybe you're new to investing and you prefer the flexibility of the Robinhood app, or maybe you're a traditionalist and you'd rather stick with a large firm like Vanguard or Fidelity.
Either way, it's good to have one place to store your investments so they're easier to access and track.
You really can get started with $100-$500 dollars!
Step Two | Select a Fund or Two
Warren Buffett and Charlie Munger say you don't have to find a few 100 companies to have a great investment portfolio, instead aim for a smaller number. Could five companies do it? 10?
Exchange-Traded Funds (ETFs) are a great way to get a low cost investment option that spreads out your risk. Last year alone, people moved hundreds of billions of dollars out of mutual funds and into ETFs because they can be bought and sold as the market moves and they have lower overall costs - fees charged to you by the fund holder.
Find a list of great ETFs HERE.
If this is your first investment you might consider a fund that gives you broad access to many different companies, like a Russel 1000 or S&P 500. The benefit with these is that they do not charge a great deal, which helps you in the long run.
As you build up your investments you can expose yourself to certain sectors, such as healthcare, tech and others.
Step Three | Make an Initial Investment and Contribute Monthly
Below, see what your potential growth outcome could be at various initial deposits and monthly contributions.
How in the world do you turn $1,400 into over $100,000?
The two most important variables here are: time and commitment of funds.
You'll see in the highest total example the investor will commit $30,000 spread out in $100 increments each month for 25 years.
Can't find $100 extra dollars a month? You have to ask yourself - if my landlord required me to pay $100 more per month would I be able to figure it out?
Maybe it's a side hustle that garners $100 more per month, or maybe it's cutting back on certain discretionary items that aren't needed on a week-to-week or month-to-month basis.
We, as Americans, are fascinated with the appearance of wealth.
Case in point?
As the most recent round of stimulus checks hit accounts athletic footwear and apparel spending jumped to 19.5% from 13.2%, as reported by Bank of America Global Research.
We don't want to get rich slow, but if you told me I could trade $30,000 for $100,000+ and all I had to do was stay steady for 25 years?
I'll be patient enough for that!
Disclaimer: The Wealth Map does not provide specific investment/fund advice and does not guarantee personal investment returns. Talk with an unbiased, fee-only financial advisor for specific retirement or investment goals.
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