BLACKSBURG, Va. (WFXR) — Financial experts say to be mindful when spending your stimulus and tax refund check.
Here are some tips on how to invest your money:
- Pay your most urgent needs. Your priority is whatever is vital for you to live, such as purchasing supplies and groceries for the family. If that’s covered, then focus on your bills, prioritize what accounts to pay, and try to get caught up.
- Pay off credit cards and loans. Experts say this is a great way to secure your financial future and reduce your debt.
- Start or add to an emergency fund. Financial experts say that during the pandemic, many realized how unprepared they were financial. Setting money aside like in a savings account is a great start.
- Invest in a financial advisor.
“Taking some of that money and paying for some really good professional advice rather than taking some of that money and kind of gambling it in the stock market, you never know how that’s going to turn out year to year,” said Professor Derek Klock with the Virginia Tech Pamplin School of Business, “but if they can take that money and pay a professional financial $1,500 or $2,000 and get a good plan put in place, that will protect them not just for today, but for years to come. I think that will be an exceptional use of their money,”