Money icon, Suze Orman, shared her thoughts on how to spend the stimulus check wisely. An article from PEOPLE enumerated some of how to spend your money from the stimulus check wisely.
The 69-year-old icon said that people should be reminded of why this money was provided, which is to stimulate one's faith and hope. That is aside from the government using this as a way to stimulate the economy.
However, regardless of its purpose, parents should also see the stimulus money as a security blanket. Orman added that they should see this to make up for what has been lost during the pandemic.
The third stimulus check is expected to be released soon. Some have already received their third stimulus payment. This third set of payments is at $1400.
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After receiving the money, spending it should be done wisely, according to Suze Orman. Here are what Orman says to be the best ways on how to spend the stimulus check wisely:
Prioritize
Orman says that it should not be anywhere but at the top of the priority list in terms of paying bills. These include cellphone, electricity, sewage, and water bills. Also, she emphasized the importance of keeping up with health insurance. Specifically for those who lost their jobs and let their health insurance lapse, the stimulus money should ensure that it is now up to date.
Being sick nowadays is no joke. That is why bills like health insurance should be prioritized.
Stock-up
During the pandemic, some families had a difficult time having to put food on the table. Orman says that if this was the case, then stocking-up on pantry essentials or food with long shelf life could be the better way to spend the stimulus check wisely.
Orman says, "Take a lump sum of this money and buy as much canned food as you possibly can."
This way, if you are all stocked, there will be no reason to worry about feeding your family if things become too complicated again.
Create an emergency fund
No one saw the pandemic coming; therefore, no one expected that it would cause a loss of jobs. The coronavirus pandemic emphasized the importance of being prepared. That is why the stimulus money is also a good start for an emergency fund.
The money icon says that regardless if there is a pandemic or not, an emergency fund should be a must. Orman emphasized, "Things go wrong. You are never secure unless you have a 12-month emergency fund."
Pay down loans
Another great way on how to spend the stimulus check wisely is by paying student loans.
Now that student loan debt is at a zero percent interest rate, Orman says that the public should take advantage of this. She explains, "So when you do have to start paying the student loan payments again, you owe less money."
