LEXINGTON, Ky. (LEX 18) — As millions of Americans begin to receive federal stimulus payments, a Lexington financial planner is advising people to save as much of it as possible.
On Wednesday, payments approved by congress last month as part of the CARES Act began to be deposited into bank accounts. The one-time stimulus payment is $1,200 for individuals who earn $75,000 or less per year, and is adjusted as income increases.
Ron Brown, a Certified Financial Planner at R.L. Brown Wealth Management in Lexington, said people should first use the payments for necessities like food and bills. But if people are able, he said they should save their payment.
"Now is the time to create a cash hoard because your number may not have been called yet in terms of losing your job or decreased pay but that could arrive at any moment and you need to have an emergency fund," Brown said.
He also advised people not to use their payment to pay down debt.
"I know that does sound strange but once you dump it on that debt it's gone and right now your biggest ally is the cash that you can accumulate," he said.
For those who feel comfortable, he said people should try to help others.
"We're in a period of time where everyone needs to unite a little when they can," he said.
Those who have qualified for stimulus payments but have not received them can check their status at https://www.irs.gov/coronavirus/get-my-payment