How to Compensate for the Lack of a Second Stimulus Check

• Author: Jeffrey Simmons
• Posted: 2024-08-30

The first stimulus check was a welcome sight in the mailbox for millions of American families. While the check was not enough on its own to keep your family afloat, it provided some welcome relief during trying economic times. There was strong talk of a second stimulus package that would give additional checks to Americans earning below the threshold amount. However, Congress is hopelessly deadlocked, and Americans are facing the prospect of having to do without the second stimulus checks. Here is how to manage your finances assuming that another stimulus check never comes.

The key to managing without the second stimulus check is to maximize your own current situation. This means making the most of your resources in order to stretch what you have. You can do this primarily on the budgeting side.

Make Changes to Your Budget

If you used the first stimulus check properly, you were able to keep working within your existing budget to make it every month. You may not have had to cut back on your expenditures and were still able to make ends meet every budget period. However, the lack of additional government help coming your way could require you to do some belt-tightening. You will need to go line-by-line through your current budget to figure out where you can cut some unnecessary expenditures. Even if you are able to cut $100 each month by eliminating some luxuries for the time being, it can help your financial situation in the long run.

The key is to be able to go through your spending and be able to separate the essential from the luxuries. You need to take an honest and objective look at what you spend and figure out what you can do without for now. Not everyone has this skill, and it requires discipline and fortitude. While you do not have to completely eliminate spending on luxuries, trimming this line item in your budget can stretch what you have further.

When you are budgeting, you need to have several different scenarios in mind. You need to be ready with the worst-case scenario so you can act quickly if you suddenly find yourself in financial distress.

Take on a Side Hustle

If you are willing to sacrifice a little bit of your free time, you may be able to make up for the lack of a second stimulus check by taking on some side hustle. We recognize that you cannot start a profitable second business by snapping your fingers. The good news is that you do not have to do that. Since many of your go-to entertainment options are closed now due to COVID-19, you may find yourself with some extra free time. With a side gig, you are able to monetize your spare time.

Many people simply associate side hustle with driving for Uber or Lyft and try to avoid it. The good news is that there are dozens of different ways that you can make money on the side. We will not list them all here since you can find those in any one of a number of different places on the web. Suffice it to say, if you have a skill and a hour or two free each day, you can earn enough money to help you make it each month.

Improve Your Portfolio Investing

If you have investable assets, you should take a hard look at your investments. You may be able to earn some passive income from your money that can either grow your net worth or provide you with a little bit of extra money each month. If you are just throwing your money at the stock market like darts at the wall, it may be time to change your investment strategy.

Dividend investing is something that savvy market investors do to compound their money or provide themselves with a small income each month. Some stocks can pay you dividends of as high as 6-7% each year. Even if this only nets you $50-100 each month, it is extra money that can either reinvest or use for your monthly budget. Of course, you still have some risk of a declining stock market, but having a passive income is even better than having an active one. You should consider moving at least some of your assets into stocks that pay you a dividend to help increase your monthly income.