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Spending your stimulus check: the do's and don'ts

A financial planner's advice is to be smart, don't impulse buy and save for the future if you can.

KNOXVILLE, Tenn. — So, you checked your bank account and finally got that stimulus check, but what's next and what should you consider before spending that money?

We talked to Senior Partner and Certified Financial Planner Jeff Foster of Tennessee Valley Asset Management Partners, or TVAMP, a registered investment advisor. 

He said the first thing you need to do is think before you spend.

"Think carefully about how you want to get the most out of this stimulus check," Foster advised.

Putting the money into savings is a safe option.

"So I would have the rainy day fund built up, then I would start to look at next steps," Foster said. "[Think], 'what payments do I have upcoming?'"

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Consider your needs over your wants. Bills, debt and repairs should be paid first before unnecessary buys like a TV or new grill.

"Be careful of instant gratification, and this is at any time, especially when you get what we call may be 'found money' would be step back, write down some of the things that you know you need," Foster explained.

Don't use the money for big purchases like a car or house.

"Don't use the money to put you in a worse situation than you currently are," Foster advised. "Meaning, be careful on putting this towards a down payment to add a tremendous amount of debt."

RELATED: Stimulus payments are arriving. Here's what you need to know

Focus on the day-to-day needs before locking yourself into payments for years to come.

"We don't know how long this is going to last," Foster admitted. "So I would be very cautious with my big purchase decisions."

Everyone's situations are different and should be evaluated before spending that $1200. All in all, be smart, don't impulse buy and save for the future if you can.

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