By now, you’ve probably heard about the government stimulus package that will provide most Americans with a one-time check of $1,200. With checks arriving soon, so is the potential for fraud. For information regarding stimulus check fraud, click here. To reduce the chance of fraud, it is recommended that you set up direct deposit with the IRS. For more information regarding IRS payments, click here.
As your credit union, we want to make sure you know to use the check to protect your financial well-being during these uncertain economic times. While it may be tempting to put the extra cash into stocks while the market is down, there is an order of priorities that you should follow before doing so.
Before spending your checking on anything else, make sure you have the essentials for you and your family. Essentials include money for your rent or mortgage, bills, groceries, medicine, and anything else that you and your family may need during the pandemic.
2. Emergency Savings
Once you have all of your essentials, you should build an emergency savings. After all, nobody knows how long the pandemic will last. Emergency savings can provide peace of mind during such times, especially if you run out of the essentials. For help building an emergency savings, click here.
3. Pay Down Debt
After you’ve established your emergency fund, it’s time to pay down any existing debts as much as possible. There are two different methods to pay down debt that are easy to manage. To find out which method best suits your needs, click here.
If you still have debt, we’re still lending. While that seems contradictory, our ‘Clean Slate Loan’ offers you a fresh start by consolidating your high-interest debt to put you on the path to financial freedom. To get started on your application, click here.
Once you have done all of the above, it’s safe to buy something nice for yourself, or invest your extra cash. If you’re interested in investing, put your money to work with a wide range of investment options offered by Pathways Retirement and Investment Services. To request your complimentary appointment, click here.
If you have existing investments that haven’t been reviewed since the financial downturn, now is the time do so. To request your complimentary appointment, click here.