-Three Step Plan of Financial Advisor for People Receiving Stimulus Fund below-
BAKERSFIELD, Calif. (KGET) – People living in Kern County could see their bank accounts increase as another round of stimulus checks are issued.
These additional funds are part of the California stimulus package. People who earn less than $ 75,000 per year will receive a one-time payment of $ 600 to $ 1,100.
The additional funds provided by the stimulus plan are intended to stimulate the economy. This means that the money is meant to be spent.
âThe economy is defined by the people who spend money,â said Sherod Waite, CEO of MoneyWise. âWhen people receive money, when an individual receives money, especially if he is at the bottom of the economic ladder, it has a very big impact on the economy, because it is these people who take the checks and immediately put them back into the economy. “
Waite explains that saving money may be the right choice for some people, but saving it or paying bills won’t immediately boost the economy.
“If everyone got the extra money and didn’t do it, it wouldn’t have any effect on the economy,” Waite said. âIt’s when people start spending and buying services that the economy is boosted.
17 News asked residents what they would do with the stimulus money and all said they would spend it either on ongoing personal projects, bills or essentials like food.
“I would buy baby supplies because I have an eight month old son and all I have left, I would buy electric fishing bait,” said Angel Ybarra, a local father.
âThe last stimulus, we put it in our new bathroom,â said Mark Umbinetti, a local owner. âSomething we wouldn’t normally do. So something special.
âI will most likely use it for car repairs because it is my need right now,â said Ernesto Garcia. âOtherwise, I’ll try to keep it in my checking account as much as I can. “
Payments have already started landing in direct deposit bank accounts, but if you get a paper check, you should get yours before Thanksgiving.
The money goes to the registered address and the information is based on the tax returns.
-Three-Step Financial Tips from the CEO of MoneyWise for People Receiving Stimulus Funds-
Waite said there are steps people should take after receiving unexpected money, like a birthday or the stimulus.
âWhen you get new money that is unexpected, maybe it’s a giveaway or a stimulus check,â Waite said. âThe first thing, bad debts. Pay off the bad debt. Maybe you owe money to your uncle, your neighbor, or the credit card company. Pay off your bad debt. Second, you need to make sure that your needs are taken care of. So it would be your immediate needs, your electricity bill, your house, your food. Make sure you have some cash on hand. The third step is your longer term need.
here is a link to the California Franchise Tax Board which has all the information on this next round of stimulus checks.
17 News asked on Monday: what do you plan to do with your stimulus check? Spend it? Save it? Or something else? See the survey results here.