FINANCIAL expert Suze Orman says there are better things you could do with your stimulus check than to "spend" or "invest" it.
The financial guru warned Americans that the latest round of the stimulus checks would go a long way – but said it would be safer to build a rainy day fund instead of spending it or paying off debt.
"For years, I always said eight months," Orman said in a video on CNBC. "And for years, you know how many other people went you don't need eight months, all you need is three months, all you need is six months."
Orman then starts recounting the start of the pandemic, when people thought it would be quickly over.
"What happened last year? Three months would have gone in three months, and then what would you have done?" Orman says.
"Six months would have lasted you. And now it's passed that eight months wasn't even enough."
Orman sums up her main point by saying "I don't think you can have too much of an emergency fund."
The financial adviser says the pandemic has already lasted a year and "it's still going on," given the record high unemployment numbers and those who are struggling to make ends meet.
Among other points Orman makes, she advocates for paying off the minimum on credit card debt and other debt in order to "play it safe," but actively warns everyone to bulk up their safety funds.
"So 12 months minimum is what I think you need."
"Until then and don't take that money and pay down your car or do this," she says. "Don't do it, you're going to have no money left."
"So the key to your freedom is having that security, that emergency fund. Keep it right there, do not spend it, and don't you dare use it to invest in the stock market."
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