Best practices for how to use your stimulus money

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COLUMBUS (WCMH) — Millions of Americans are getting their stimulus money this week but the way in which they use that money differs from person to person. Jaime Mengus, a wealth manager with PDS Planning, says the first step is to take a step back before spending any of it.

”I think right now folks need to take a deep breath and try to get everything laid out in front of them,” Mengus said. “Recognize this is all uncharted territory for all.”

Mengus says it may not be the best idea to immediately pay bills and that it might be better to ask companies and landlords about delayed payment options.

“You have to address the most immediate needs of survival right now so purchasing food obviously but making sure it’s not perishable and it can last a long amount of time,” Mengus said.

Mengus added utility companies, landlords, insurance companies and beyond may be offering some kind of rebates, discounts or fees waived because of the pandemic.

“This could extend longer than any of us anticipate,” Mengus said. “I would encourage people who don’t have to spend it to hold it in their cash reserves and hold it for what may be coming down the road.”

Mengus added the stimulus money will not be taxed and he says if you do owe the IRS, those funds will not be taken out either.

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