How to make the most of extra stimulus check cash

KTRK logo
Thursday, August 13, 2020
How to best invest your stimulus check
WATCH: These are the tips financial advisors have for making extra cash from a second stimulus check work best for you.

The second stimulus package is still on the drawing board, but when it arrives, individuals could get up to $1,200, and families would get even more.

While most families need that money, for some, it will be an added bonus. So what should they do with that extra cash?

The first place to put that money is an emergency fund. Most Americans do not have one, and if this pandemic has taught us anything, it is that an emergency fund is vital.

If you already have an emergency fund, consider options for the future. Experts say you should get that money to grow by opening up a Roth IRA or a traditional IRA.

SEE ALSO: Stimulus package talks: Where lawmakers now stand on unemployment, stimulus checks, PPP

Pres. Trump is threatening executive action if Congress can't reach a deal on the latest stimulus package.

Routinely adding to the account will turn your stimulus check into a much larger amount, given enough time.

One thing that is getting a lot of attention for investors is the recent announcement that Tesla will split its shares five to one, making the price of a single share much more affordable to the average investor.

"The biggest mistake I see this year is pulling out of the market because they got scared, that the fear got them," Richard Becker with Texas Retirement Planners said. "Most people are their own worst enemy."

For most people, a second stimulus check will be spent immediately. Around 54% of Americans need to use it right away, but 46% reportedly do not. For those people, making the money grow is something to consider.

Follow Jeff Ehling on Facebook, Twitter and Instagram.

President Donald Trump has bypassed the nation's lawmakers as he claimed the authority to defer payroll taxes and replace an expired unemployment benefit with a lower amount.