Financial advisor says if you don't have an immediate need for stimulus money, save it

Posted at 4:45 PM, Dec 30, 2020
and last updated 2020-12-30 17:56:43-05

CLEVELAND — Some folks are desperate for the stimulus money.

"Utilize those dollars to take care of your basic living expenses because really that’s what the stimulus is for," said financial advisor Tiffany Hollinger.

Hollinger, owner of Hollinger Financial, says for folks who are relying on the stimulus money to live, pay your rent or mortgage and buy groceries with it; don’t use it for things like credit card payments.

"If it’s credit card debt and things of that nature, call those creditors and try to work something out. I wouldn’t necessarily try to utilize this stimulus for that because it's not enough to really make a dent and it's better to ask for help," she said.

Hollinger advises doing the same thing for car loans.

"They have been modifying, putting the payments on the back of the term, doing interest-only payments, your car companies are willing to work with you," said Hollinger.

But what if you’re not desperate for the stimulus? Hollinger has tips for you too.

"For you, I offer to do three things: save, save and save," she said, laughing. "The greatest amount of wealth in history has been made and acquired after an economic crisis."

Hollinger says this economic crisis will likely still be felt a few years from now, so the more you save, the better you position yourself for the future.

"There are people who had major wealth because they increased their savings and their 401k plans or they bought stocks and bonds and things or things of that nature, or invested into real estate," said Hollinger.