Sharon Tseung 0:01
Hey guys, it’s Sharon from digital nomad quest, and today we’re going to talk about how to spend your stimulus check. Now, if you guys are new to this channel, welcome, I’m all about teaching on how to build passive income become financially free and design your best life. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. Now let’s get right into it. So if you guys have received your stimulus check, it’s important to understand how you’re going to spend it in order to cover your finances. So I made this chart right here based off of Maslow’s hierarchy of needs. Now in psychology, Maslow’s hierarchy of needs is basically this five tier pyramid that outlines the stages of growth in humans, and it starts with the most basic needs at the bottom. So we’re going to do sort of a finance version of that. So this is what it looks like. Alright, so we’re going to use this chart to understand how you’re going to spend your stimulus check. This is just a framework that I thought of but you might not agree with it, but hopefully this helps give you some information. Now if you receive the check first off, you want to cover your necessities right food or Water, things like that, you know, obviously if you need that to survive and you don’t have that currently, you’re gonna definitely want to cover that. Next off, we have your bills. So obviously if you need to pay your bills, you got to use it for that that’s what it’s here for. Right Something to note though, if you know you lost your job or something like that, there’s a lot of banks and credit cards that are being generous with people who are suffering during the quarantine. So you want to look into that and see if they’re able to create adjusted payment plans for you during this time. So make sure to check that out. Next, the way I made this was basically if you are in jeopardy of losing your job, you’re not sure if your income is stable currently, and that’s your main concern. You want to make sure you save that money to make sure that you’re covered for these parts, you know if you end up losing your job, and then after that, you’re going to want to take care of your debt. So if you have decided that your income is stable, but you have debt with some high interest, for example, 10% or more, you definitely want to pay those off or you want to work on paying those off when it comes to paying off your debt with high interest you You might actually think, Oh, it’s might be safer to save it. But think about it this way, if you have debt with high interest, like 10%, you want to pay it off quicker, because the interest adds up, it’s gonna cost you a lot of money. So it’s better to kind of pay that off as soon as possible. So you might as well cut down on the amount of compound interest that you’re accumulating over time. Now the next portion is basically if you have debt with low interest, so basically under 10%, or if you have no debt, obviously, you want to make sure you’re saving money. So you have an emergency fund, you know, these times are uncertain. So maybe you do want to have that backup emergency fund to make sure you’re okay in these uncertain times. So you might want to consider paying off some of the debt but like, ultimately, a lot of it should go to your emergency fund. Okay, now, this is the highest tier where you are basically good with no debt and your income is stable. At this tier, you’ll probably want to invest on the money you want to build skills as well as build passive income businesses. So you might want to invest money into buying courses. Are you might want to invest money into building businesses. And then when it comes to investing, you might want to look into stocks and real estate because right now, I think it’s actually kind of a good time because of a lot of it dropping in, you know, Warren Buffett’s, quote, be fearful when people are greedy, be greedy when people are fearful. This quote basically says that, you know, right now everyone’s scared, so it might be a good time to invest. But obviously, in my previous video, I talked about how you want to diversify your portfolio, you don’t want to put all your eggs in one basket, you want to make sure you have enough in your savings. And then you want to invest in different things. This is why I kind of talked about you know, not just investing in stocks, you want to build your skills because as you increase your earning ability actually increases kind of your net worth in a way because I feel like your safest asset is basically what you can bring to the table. So if you can always bring something to the table, you’ll be able to make money and then when it comes to building businesses, you know, my whole channel is about building passive income businesses. I always believe that if you have that cash flow coming in You’re covered when you have high expenses or during times like these, right? Because I have multiple passive income streams I feel covered in a sense that they might be decreasing because of these times but certain ones aren’t hit as bad as others. So as long as you’re diversifying, I think you’ll be okay. You want to try to do all three of these things if you can. For example, I have a course on how to make your first thousand dollars a month on Etsy in passive income. So this would kind of cover building skills and building businesses where I really advocate buying courses so if you want to check that out, go check it out on my site, digital nomad quest COMM The course is called the Etsy entrepreneur. That way you can basically cover both of these, we’re gonna build skills around building a business online as well as learn how to build passive income online. So that’s one way to invest your stimulus check. So hopefully you guys enjoy my breakdown. I worked kind of hard on figuring out this framework. So here it is. Again, to recap, make sure you’re hitting your necessities, your bills, you want to make sure you save money in case you’re at risk of losing your job. Then you want to cover debt with high interest, and then save money if it’s debt with low interest, and then you want to work on investing, building skills and building businesses. So this is how I advocate using your stimulus check. So obviously, I’m not a financial adviser, but these are my tips and framework around how to spend your simulus check but you want to make sure you consult with a professional financial advisor for any financial decisions. As I’m not held responsible for any financial decisions you make. I want to make sure you guys consult with a professional if you’re really trying to figure out your finances but I hope this video helps on kind of ideas on how you can spend your money and invest your money as well as just understanding the basic framework of needs when it comes to your finances. If you guys liked this video, make sure to comment below let me know what you thought of my little Maslow’s hierarchy of needs the finance version. Hope you guys enjoyed that and make sure to subscribe and hit the bell button to be notified on my latest videos. And I’ll see you guys in the next one.

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