Local financial expert weighs in on how to use stimulus money
CHICAGO - Nearly 90 million stimulus payments were issued on Wednesday.
The bulk of those payments were made by the IRS as direct deposits. The Treasury Department has also mailed roughly 150,000 checks.
Now the question is, what to do with all that money?
The coronavirus pandemic has cost people their lives and livelihoods.
So for some, this $1,400 will go right to bills, rent and food.
However, for those individuals who won't be using the money for basic needs, experts say there are some ways you can make that money work for you.
"You really, really, really want to have the opportunity to have these new funds in your account, work for you," said Bill Bloom, founder of Bloom Financial.
So how do you do that?
Bloom says consider these three tips.
"Really understand your debt because paying off debt could free up cash flow for you every month," said Bloom.
He suggests paying off credit cards with the highest interest first.
Second, Bloom says to consider investing the money, or third, saving it for a rainy day.
"Most people don't have emergency funds so you could use this as, you know, the foundation," said Bloom.
If you're a recent college grad, Bloom says to ask yourself an important question: "Is this going to help me in the future?"
If the answer is no, you may want to think twice.
"Using the stimulus money to pay off a chunk of those student loans, that's gonna save you so much money in the long run," said Bloom.
For moms and dads, Bloom recommends saving the money, including for college.
"That $1,400 could turn into a lot more money and help pay off your children's education," said Bloom.
For those retired, Bloom said you could potentially use the stimulus money to live off of, or give it to your kids, grandkids or charity.
"One of the things you definitely shouldn't do is just go buy clothes or spend this on things that are frivolous," said Bloom.
If you are still waiting for your stimulus money, you can track the status on the IRS website by clicking on the "get my payment" tool.