Yahoo Finance 10 Ways To Use Money from Guaranteed Income Programs if Selected
As the name suggests, guaranteed income ensures that everyone in a participating community whose income falls under a certain threshold receives monthly payments, usually for a year or more. These programs are spreading in a post-pandemic economy with widespread high costs of living, according to NBC News.
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How Helpful Are the Programs?
Many individuals, such as those stuck in low-wage jobs, say that these programs relieve a great deal of worry, ABC News reported. Recipients can usually use the money any way they wish, including to pay bills, pay off debt and seek healthcare. Additionally, research cited by ABC News has shown that the programs increase employment and help participants achieve financial and housing stability. Improved physical and mental health is another benefit.
“The programs are also intended to address racial, wealth or income inequalities. Guaranteed income was a proponent of the civil rights movement in the 1960s, backed by Martin Luther King Jr. to address racial income inequality,” ABC News reported.
What Can You Expect From Guaranteed Income Programs?
Most programs are new pilot programs designed to test the concept. Some accept applications, others select recipients from pools of eligible individuals. Looking at what several recent programs offer or have offered can help you predict what you might expect from programs in your area.
Guaranteed Income to Grow in Ann Arbor, Michigan, is a two-year program that gives $528 per month to entrepreneurs, owners of a small business, independent contractors, gig workers or those who provide paid services.
A pilot program in Rochester, New York, selected 351 individuals to receive $500 per month for one year, unconditionally — no work requirement.
The most recent implementation of Growing Resilience in Tacoma, Washington, provided $500 per month for a year to asset-limited, income-constrained, employed families in Pierce County.
Sacramento County’s program last issued $500 per month for one year to households of varying sizes, including a single adult.
10 Ways To Use Guaranteed Income
Most programs for low-income individuals provide funds for specific needs, like food or rent. “Guaranteed income provides people with autonomy to use the dollars they spend,” according to the Johns Hopkins Bloomberg School of Public Health. To get the greatest value from this opportunity, some of the uses you can consider include:
Purchase groceries and eat out.
Buy clothing and other retail items.
Pay for transportation, whether public or car ownership.
Build an emergency fund.
Pay utilities and other monthly bills.
Cover educational expenses like tuition or tutoring.
Seek healthcare — doctor visits, prescriptions.
Pay fees for kids’ activities.
Start a business or side gig.
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This article originally appeared on GOBankingRates.com: 10 Ways To Use Money from Guaranteed Income Programs if Selected
