Due to the small amount being given, advisors want to give Americans tips on how to stretch the money to last longer.
Cecilia Valle, a financial advisor from Edward Jones Investments, says that setting priorities should be the most important thing.
“I’m going to say it probably like a broken record but start with your now bucket. Start by making sure you can pay your expenses, that you have some emergency savings built up,” she says.
After using the money for expenses in your “now bucket,” you can then focus on the “later” bucket.
“You can start to put aside for saving goals whatever those are maybe its a trip or maybe its retirement or education,” said Valle.
Of course, Valle doesn’t seem to realize that most Americans have more than $600 worth of expenses in their “now bucket,” because many have been out of work for months due to the Democrats’ authoritarian lockdowns.
Wendy Quintero, Executive Business Director of Financial Educator, says that people should also remember to budget. “This is your current situation, this is your plan for the future, now what do you need me to do now to start now to make sure you comply with this plan,” Quintero said.
“Our recommendation for those who receive the second stimulus check is to go to a Certified Financial Educator to help them diagnose their financial situation by doing a personalized Financial Analysis, to help them make a budget and plan for the future of their families, educate themselves on how to save, Invest, and Get Out of Debt with the Help of a Financial Educator,” she added.
Quintero seems to think that the American people have the time and resources to spend on chatting with financial experts about their finances, while they are busy looking for jobs and taking care of their families. Somehow, $600 is supposed to be stretched for financial education and paying off debt at the same time.
Valle also added that people need to learn to separate good debt from bad debt to figure out what to use the money for.
“It’s going to be important to pay off things that have a higher interest than lower interest right? So always… your credit card, you’re going to have a really high interest in what you are paying,” said Valle.
John Jett, a Charter Financial Consultant, says people need to focus on cutting their spending now.
“You should be slashing spending regardless of stimulus, I mean most people, they should understand they need to save at least 15 to 20 percent of their earned income,” said Jett.
Jett doesn’t appear to understand the fact that many people can’t even afford to pay their rent or buy groceries right now because their businesses are closed, or they have lost their jobs. They aren’t focused on saving money right now, they’re focused on surviving.
The solution to the economic and financial problems of the American people isn’t throwing crumbs at them from a stimulus bill, or budgeting, or financial advisors, or saving money, or paying off credit card bills. The solution is to reopen the economy, stop the lockdowns, and let the American people earn a living.
According to government officials, direct payments could arrive in people’s bank accounts as soon as next week.