Stimulus checks are now hitting bank accounts… What should you do with yours?
Jeff Foster, CFP® is a Senior Partner and a Wealth Advisor at TVAMP. His favorite place to be is anywhere with his family: dinners at home, boating on Lake Loudon, sporting events or vacationing. Jeff has been advising couples and individuals for 21 years… His number one priority has always remained the same: to make life easier for his clients.
WBIR reporter Katie Inman asked us to talk about “The Do’s and Don’ts of Stimulus Check Spending.”
Think before you spend.
Jeff Foster, CFP® started, “Think carefully about how you want to get the most out of this stimulus check.” Putting the money into savings is a safe option. He continued, “Make sure to have your rainy-day fund built up. If you do, then I would start to look at other options such as, what upcoming payments do I need to make?”
Consider needs over wants, first.
Bills, debts, and repairs should be paid first before unnecessary buys. Jeff reminded everyone, “Be careful of instant gratification, especially when receiving an unexpected sum of money. Write down some of the things you need and go from there.”
Don’t use the money for big purchases like a car or house.
Jeff explained his logic, “Don’t use this money to put you in a worse financial situation… Using this as a down payment will add a tremendous amount of debt to your plate.” Katie summed it up perfectly, “Focus on your day to day needs before locking yourself into payments for years to come.”
Jeff ended with, “We don’t know how long [these uncertain market conditions and virus] will last, so I would be very cautious about how you spend your stimulus check. Be smart, don’t impulse buy, and save for your future if you can.”
If you’d like us to help you evaluate your unique financial situation, call us at (865) 226-9982 or send an email to [email protected].
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.