Got your stimulus check? Financial advisor gives advice on what to do with that money

Got your stimulus check? Financial advisor gives advice on what to do with that money

LOUISVILLE, Ky. (WAVE) - Stimulus checks are rolling out this week, and some might be wondering what to do with that money.

If you don’t have a job right now, decisions are tough. You need to spend the money that you have wisely.

Here’s a breakdown of what most people are going to get with that stimulus check: If you make up to $75,000 a year, you’ll get $1,200. Married couples making up to a combined $150,000 will get $2,400. Families will get an additional $500 per child.

If you are truly struggling for necessities right now, like buying groceries, take care of those.

Otherwise, Tim Riney, from the Family Wealth Group, said if you can put the money into an emergency fund, do that, because it’s anybody’s guess how long the new normal will last.

“Build back that emergency fund,” Riney said. ”You probably dipped into that emergency fund a little bit. Emergency funds should be 3-6 months of your budget.”

Riney also suggested spending the stimulus money on debt, particularly credit-card debt.

“If you have those high-interest credit cards, take an opportunity to pay those off first,” Riney said. “There (could be) some leniency with rent payments, or mortgage payments. But, the high-interest stuff where credit cards are charging double-digit interest rates. Take an opportunity to pay them off if you can.”

Riney said you should consider investing that money if you can, but be careful.

“I’m not suggesting that we’ve hit the bottom of the market, but there are some deals out there to be had,” Riney said. “A lot of my clients are seeing this as a buying opportunity.”

Lastly, if you don’t need the money, Riney suggested donating it.

“Help others in need, whether that’s displaced workers (or) charities that are not able to collect their donations on a regular basis now,” Riney said. “Everyone is unique. Do what is right for you.”

The obvious? Don’t go and blow that money, because we don’t know how long the coronavirus crisis will impact us and the economy, and when things will bounce back.

The IRS is launching a tracking tool called Get My Payment this week to give Americans an idea on when to expect a deposit or a check in the mail.

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