What Should You Do With a DOGE Check?

If you are met with a $5,000 bonus, the important point is to make sure you use it wisely. Shutterstock

As the Department of Government Efficiency (DOGE) seeks to eradicate unnecessary government spending, some of the money may be given back to the people.

In fact, President Donald Trump and DOGE head Elon Musk announced in February that they would consider a plan to release $5,000 dividend checks to Americans from the savings made from DOGE’s cost-cutting efforts.

There’s much you could do with those dollars, but you first need to know if you’d qualify for the payment.

Where Did the Idea for a DOGE Stimulus Check Come From?

Trump has yet to announce any specifics about the proposed DOGE dividend checks. But it could help to look at where the idea came from.

It stems from an X post by investment firm Azoria CEO James Fishback. He wrote, “President Trump and @ElonMusk should announce a ‘DOGE Dividend’—a tax refund check sent to every taxpayer, funded exclusively with a portion of the total savings delivered by DOGE.”

Within the post, Fishback also attached a document titled, “The Case for a DOGE Dividend.” In that document, he wrote: “Take 20 percent of DOGE’s total savings ($400 billion) and return it to the 79 million U.S. households who will be net payers of federal income tax in CY [calendar year] 2025 as a tax refund check.”

According to his math, Fishback said the dividend check would amount to $5,000 for those who qualify.

Musk, who is also the owner of X, responded with, “Will check with the president.”

Last month, Trump announced the idea of considering the proposed $5,000 checks. So it is possible that in the event a DOGE dividend check comes to fruition, it will appear in the form of a $5,000 tax refund sent to U.S. taxpayers.

What to Do With the Check

So what can you do with the $5,000 if it appears in your bank account?

Put It in Savings

Even though the Federal Reserve announced pausing interest rate cuts in light of stubborn inflation during its March meeting, you could still find high-yield savings accounts paying around 5 percent annual percentage yield.

You could park your $5,000 DOGE check in one of these accounts. And in five years, with just $100 of monthly contributions, it could grow to $13,217.40.

Most financial advisers recommend you have at least six months’ worth of savings in a high-yield and highly liquid emergency fund. And a $5,000 bonus would certainly help many Americans build one.

To put that into perspective, the median savings balance for people aged 64 and younger ranged from $5,400 to $8,700, according to an analysis by Experian.

Contribute It to Your 401(k)

If you’re fortunate enough to have a workplace retirement plan such as a 401(k), a $5,000 contribution could help boost your retirement savings.

Suppose you have 30 years before your retirement and you meet the following criteria:

• Starting 401(k) contribution: $5,000
• Salary: $80,000
• Annual contributions to your 401(k): 3 percent or $2,400
• Average return: 10 percent APY

In 30 years, your $5,000 would turn to $530,935.96 in this case.

But there’s more to it. Contributions to a traditional 401(k) are tax-deductible. This means they could lower your tax liability or increase your refund for a given year.

And if you have a Roth 401(k), you can withdraw funds tax-free if you’re at least 59 1/2 years old and the account has been open for at least five years.

If you don’t have a workplace retirement plan, you could always open a traditional or Roth individual retirement account (IRA). You could open these accounts easily online through a major brokerage firm.

Invest in the Stock Market

You can buy individual stocks and other securities such as exchange-traded funds (ETFs) and mutual funds through a regular brokerage account.

But you may be concerned about the recent stock-market correction. A correction occurs when there’s a market decline of more than 10 percent but less than 20 percent.

You may also be worried about a potential bear market, which is when the stock market drops by 20 percent or more.

But markets recover. In fact, research shows that bear markets are generally short-lived. The average length of a bear market is around 9.6 months, according to research by Hartford Funds. On the other hand, bull markets tend to last about 2.6 years. And while markets are down, you could essentially be buying stocks at a premium. And you could benefit substantially when they bounce back.

The Bottom Line

Little is known about the proposed $5,000 DOGE dividend. But the idea is out there, and the president said he has put it under consideration. But if you are met with a $5,000 bonus, the important point is to make sure you use it wisely. You can use it to boost your emergency fund or retirement savings. You could also take a larger risk for potentially higher returns by investing it in the stock market.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.