By: Jeremy Skoglund, VP Trust Officer
Many of us have either received or will be receiving the stimulus money from the government.
There is also a chance that Congress decides to do another stimulus in the future, so you may see another check.
With all this unexpected money coming in, what are the best ways to use the funds? While everyone’s situation is different, here are some thoughts on what you can do with the stimulus money.
Spend it on Necessities
The majority of people are using this money to pay for things like food and rent. The funds can act as an emergency fund to cover the necessities if your normal income has been reduced.
Pay Down Debt
With interest rates at all-time lows, it would be an excellent time to use the money to pay down high-interest loans you may have.
Start an Emergency Fund
Many are learning the importance of an Emergency Fund now. Having funds that can cover three months or more of expenses can have a big impact on your financial stability when something unforeseen happens.
You may be scared of putting your money in the market after what we have seen this year, but this could be a great time to invest. As Warren Buffett says, “Be fearful when others are greedy and greedy when others are fearful.” I don’t think you need to be greedy, but when there is fear in the market, there tend to be some great deals for those with funds to invest.
If you have any questions or would like more input on making the most of your stimulus money, please give us a call.