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There is reason to believe that there will be no government paydays next year.

Key Point

• Many families turned to economic stimulus in 2021.
• Many people have had to go without a stimulus check this year, and it’s likely that the same will be true next year.
• Look for other ways to build your finances, like taking on a side job or setting a budget.

When lawmakers approved a $1,400 stimulus package in early 2021, the money served as a lifeline for many cash-strapped families still struggling to recover from the pandemic. So far, however, there has been no federal stimulus in 2022. With a strong economy and robust labor market, it was difficult to justify transferring another form of federal funding to Americans’ bank accounts.

some people Have It has been involved in stimulus payments this year, but they have not reached the federal level.

But by 2023, it’s highly likely we won’t see any stimulus at the federal or state level. And that’s what Americans should be prepared for.

Why stimulus checks are unlikely

In the past, stimulus measures were implemented when the economy was in deep recession and unemployment was high. However, given today’s job market conditions, stimulus is far from justified. There is still room to rise without declining.

Similarly, some economists worry that if the Federal Reserve’s rate hikes cause a significant recession in consumer spending, we could end up in a recession in 2023, but that recession is likely to continue. If it does happen, it won’t necessarily be dramatic. What may happen is that we will experience a mild recession – a time when unemployment will rise, but not to a dramatic degree. will not cause it to run out.

In addition, there is now a major move to bring inflation down. And another stimulus could have the opposite effect.

In fact, many say a big reason inflation is so high this year is that Americans were given stimulus checks to spend last year, which put pressure on weak supply chains and caused a mismatch between supply and demand. I’m sure. So it’s easy to see why lawmakers are in no rush to launch another stimulus package.

Other Ways to Strengthen Your Finances

We shouldn’t expect any stimulus in 2023, so we may need to make some changes to make our finances more stable. Is it really an easy option? Secure your budget. The simple act of tracking spending can help some people better manage their income and work toward various goals.

Another good way is to look at the gig economy. Admittedly, if a recession hits, it might be harder to have a side hustle next year. But right now, there are plenty of opportunities to get out and easily secure a side income stream in place of the missed stimulus in 2023. – Even if the economic situation worsens next year.