While you're waiting on that stimulus check to hit your account, it's important to come up with a plan on how to spend it.
The second round of pandemic relief is on its way in the form of $600 stimulus checks. Financial advisers, like wealth manager Josh Klinger at Tennessee Valley Asset Management Partners, a registered investment adviser, hope people learned their lesson from the $1,200 relief in the spring.
"The best way to look at the stimulus money is really kind of an opportunity to jump-start your financial future for 2021," Klinger said.
While the check is half as much, there are ways to make sure that every penny goes the extra mile.
First, don't spend the money before you have it. Catch up on bills and pay off debt.
"I think the hope with the money is that people will be able to go and build up that emergency fund again or go pay off those credit cards that they maybe overcharged over the last two or three weeks," Klinger explained.
Klinger said the biggest mistake you can make is splurging on big purchases, like a new phone or big TV.
"I can promise you, in July, your financial situation will be better by not spending money on that extra large television," Klinger noted.
You can always choose to invest the money instead of spending.
"Now when they get this additional money, they will see the value in trying to put that money toward things that will help them in the future," Klinger explained.
TVAMP said they can help answer stimulus check and financial planning questions before and after those checks arrive.