Welcome to Personal Finance Insider, a biweekly newsletter that connects you with the stories, strategies, and tips you need to be better with money.
Here’s what: You’re about to get paid
Tomorrow, President Biden is expected to sign the $1.9 trillion American Rescue Plan into law.
The bill will put money directly into the pockets of millions of people. If your income is less than $80,000 — or $160,000 if you’re married and file taxes jointly — expect to get paid. Doubly so if you have kids.
Stimulus checks are wildly popular; everyone loves no-strings-attached government money. But the tax credit is a big deal, too. About 93% of children in the US would qualify for at least a partial benefit in 2021, compared to 25% under the current rules, The New York Times reported. If sent monthly, the payments would drastically reduce child poverty.
A married couple earning up to $150,000 with two kids under age six could get up to $5,600 in cash this month, plus another $600 per month from July to December, plus another $3,600 when they file their 2021 tax return next year. And that’s just from stimulus checks and the child tax credit. There’s also unemployment, housing, and food aid to consider, if they qualify.
All this to say: If you’re struggling, help is on the way. And if you’re in good shape financially, make a plan.
—Tanza Loudenback, Personal Finance Insider correspondent and certified financial planner
Stories you might have missed
“We knew what our money was doing because we told it what to do,” Leo Jean-Louis told Insider’s Laila Maidan. Simple yet brilliant.
Insider contributor Michelle Jackson accepted just half of the mortgage she qualified for to buy a ground-level unit back in 2007. Despite its oddities, the home has paid dividends.
It’s smart to have financial goals — but don’t be surprised if something like a pandemic comes along and shakes up your perspective. Insider contributor Jackie Lam explains how her plan has shifted for the better.
Insider’s Liz Knueven serves up nuggets of truth she gleaned from “The Next Millionaire Next Door.” My personal favorite: A high income doesn’t equal wealth.
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Read More: Many Americans can expect cash soon