After President Donald Trump chose Elon Musk to lead the Department of Government Efficiency (DOGE, an acronym that is also a nod to a cryptocurrency supported by the businessman), millions of Americans looked expectantly at what could happen with his ideas: he proposed many things, but particularly, he was focused on reducing the cost of the federal State for taxpayers, and generating significant savings. What would be done with all the money saved? It was proposed to return it to Americans in the form of stimulus checks.
And Musk didn’t say yes right away, but he didn’t say no either. The idea of these stimulus payments came from James Fishback, and he transmitted it through X (formerly Twitter) to Musk, and then sent it to him in the form of a formal proposal, ready to be implemented. Musk assured that he was going to talk and reflect on it with Trump, but it was understood that it was technically viable, that it was not completely ruled out.
However, the scenario changed: Elon Musk announced that he will soon leave the Federal Government and will focus again on his businesses, Tesla, SpaceX and social networks (in which he has already lost a lot of money).
DOGE dividend: 4 key steps if you receive the promised $5,000 stimulus check
Now, after Musk’s announcement to reduce his participation (working only one or two days a week), doubts are arising about the future of his proposals. Among them, a possible dividend of $5,000 stands out for American households that meet certain requirements.
In case the idea comes to fruition, despite Musk’s departure, you should know what to do with that juicy payment, which could contribute a lot to your financial situation, if you know how to use it wisely.
The payment, funded by the supposed $160 billion in savings generated by his team, is not yet a reality. It would need approval from Congress and the budget cut goals to be met. Additionally, it would only apply to families that pay federal taxes. But if it were to materialize, here are four practical ideas for using that money.
Nearly 40% of Americans have no savings to cover unexpected expenses. If this is your case, putting the $5,000 into an emergency fund is a smart move. Experts recommend having enough to live between 3 and 6 months without income. This sum could bring you closer to that goal, especially in an uncertain economy where any unforeseen event (such as an urgent repair or illness) can destabilize your finances.
Reducing your final credit card debt, not just by paying the minimum, but by making an extra payment, is certainly a great idea when you can put it into practice. For example, a $5,000 debt with a rate of 20% annually can earn you more than $1,000 in interest alone each year. Removing that burden not only improves your financial health, but it also gives you more freedom to invest in your future and sleep more peacefully each night.
Invest your stimulus check, don’t spend it superfluously
If you already have an emergency fund and little debt, consider investing. From high-yield accounts to ETFs to real estate, there are options depending on your risk profile. Even small amounts can grow over time thanks to compound interest.
Of course: do your research or consult an advisor before making decisions. The stock market, shares, stock markets, and also the new cryptocurrency markets are volatile and risky, and we are not in a position to give you financial or stock market advice (it is not), but an expert in the field can guide you on how to multiply that money.
If the stimulus payment does not arrive, it is always good to review your finances
Although Musk’s idea is striking, many doubt its political viability. While you wait (without counting the money), review your current budget: are there unnecessary expenses that you can cut? Small adjustments, such as reducing subscriptions or optimizing insurance, also free up cashflow.
Remember: financial shortcuts are rare. The key remains to spend less than you earn, save consistently and avoid unnecessary debt. And if the $5,000 comes your way, use it to build a solid foundation!
