x

Grand Rapids's Leading Local News: Weather, Traffic, Sports and more | Grand Rapids, Michigan | WZZM13.com

Expert: Don't spend all your stimulus money

A local financial adviser said how the checks are best used, depends on your current financial situation.

GRAND RAPIDS, Mich. —

The coronavirus pandemic is not only a health crisis, but a financial one as well. In response, lawmakers signed off on the largest aid measure in American history, a $2 trillion stimulus package. 

Millions of people will receive a direct payment from the government in the next few weeks, as a result.

At this point, you might be thinking about where you’re going to put that money.  A local financial adviser said how it’s best used, depends on your current financial situation.

Ben VerWys, the founder and senior financial adviser at Action Point Financial, said first you have to provide for you and your family’s basic needs, including food and medical needs.

He said, if you can, then look at your emergency savings and begin working toward a few months of household expenses saved in the bank.  

RELATED: Social Security recipients won't have to file tax return to get stimulus check after all

RELATED: Stimulus check calculator: See how much you'll likely be getting

“It's important to use this check wisely, for necessary items that you do need,” VerWys said. “If you can shore up some savings or make investments, if you have the ability to do those things. Because that still does pump money into the system when you receive it, but it allows you to access that money later.”

If you’re fortunate and this money isn't needed for basics, you can look at paying off debt and adding to savings. Then, possibly, if you’re lucky making investments.

Spending on things you don’t necessarily need, is the last thing on that list. 

Future steps by the government are unknown, so VerWys advises people to plan as though there aren’t going to be any more checks.

RELATED VIDEO:

MORE COVID-19 / ECONOMY NEWS:

Make it easy to keep up to date with more stories like this. Download the 13 ON YOUR SIDE app now.

Have a news tip? Email news@13onyourside.com, visit our Facebook page or Twitter. Subscribe to our YouTube channel.