Guest Commentator: Brian Henrysen Jr., AAMS, Financial Advisor, Gute Financial Services

The recent round of fiscal stimulus passed by the Biden Administration has left many young workers with $1,400 for which they hadn’t planned. Although this may not be life-altering money for most, there are certainly a few ways to best utilize this unanticipated income.

My first recommendation would be to pay down any high-interest debt that you’ve collected. Many individuals use credit cards to pay for daily expenses — a habit that is usually fine provided you have the ability to pay off the majority of those balances at the end of each statement period. Unfortunately, it is all too common to fall into a situation where our spending outpaces our ability to repay the balances on those cards. If you relate to this struggle, paying off any outstanding high interest credit cards will help curtail future interest expenses.

Especially in the wake of what this money comes as a result of, another advantageous option is to simply bolster up your savings. Whether or not you found yourself personally affected by a year full of job loss, medical expenses, or increased bills, having a savings account to help mitigate loss is paramount. You may find it difficult to watch cash sit ‘idle’ in a savings account. However, if ever a time arises in the future where a loss of income or an unforeseen expense arises, that cash reserve may be the lifeboat you need. In general, you should have 3-6 months’ worth of non-discretionary expenses saved in either a high-yield savings account or money market.

The final option I recommend is, of course, investing. While adding onto your retirement accounts and other brokerage accounts are great options, investing in yourself also pays dividends, metaphorically speaking. So go ahead and purchase a few books to expand upon your knowledge or treat yourself to those online yoga classes. After all, health is wealth, whether that be financial, intellectual, or physical.

Meeting people who I can help is my passion. I encourage you to reach out to chat about what makes the most sense based upon your unique life scenario or simply if you need a sounding board. Please feel free to connect with me; I welcome the opportunity to assist in any way I can.

Any opinions are those of Brian Henrysen and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.


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