So You Received Your Stimulus Check

It is called a stimulus check for a reason. The hope is that you spend it and preferably with local
vendors. Stimulate the economy.

Here are some suggestions:

• Work on reducing your personal debt load. You should try to pay off or reduce higher interest rate debt
  first, but when you can reduce your debt, in theory that should free up future cash flow. And while you
  are at it, you might want to entertain debt consolidation if it can help you with the monthly payments.

• Do you have an emergency fund? Most advisors encourage you to have a four to six month cash reserve
  for those unexpected financial crises. Now is the time to replenish, add or start a fund. Sadly, there is
  always a next time.

• Do you have an IRA? Remember, social security only covers 25% (estimated) of your retirement needs.
  You need to have your own plan, as you cannot rely on the government and social services. Take
  control of your future needs. Start now.

• Along the lines of an IRA, do you know if your employer offers a 401k? If they do, are you taking full
  advantage of it? Do you know how to enroll? Does your employer encourage participation? This new
  money in theory frees up some of your take home pay to contribute to the 401k.

• Maybe you need to start planning for other financial needs. Child education, marriages, medical plans,
  automobiles and homes come to mind. Start now and develop the right financial habits for future plans.
  It may require a budget, and some of my previous columns address that topic.

• Or you think you are the next savvy Wall Street investor. Starting or adding to a fund is a good way to
  save this money if all of your other priorities are satisfied. Now, don’t go head first into risky gambles,
  and realize that you may lose what you invest, in the worst case. For example, the cryptocurrency
  market and Gamestop come to mind. (Read Warren Buffett’s comments on those examples.) Those
  are roller coasters you may want to avoid unless you have the appetite for that risk. After all, this
  stimulus money is “found” money.

Yes, the stimulus checks are not huge financial windfalls. But they are a step in the right direction
towards your financial health.