In a client memo released in late March, JPMorgan reported that while many people had used their stimulus checks to invest, the investments weren't as trendy — or as risky — as in December and January. Much less stimulus money has gone crypto, tech stocks and high-risk options.

And that suits personal finance superstar Suze Orman just fine.

Orman, one of America's most prominent personal finance experts, has in recent weeks shared some strong opinions about how you should not spend your windfall.

“Don’t you dare use it to invest in the stock market,” she said in a video about stimulus checks recorded in late March for CNBC.

Here's her take on the role the market should play in your stimulus strategy plus some other advice for how to use your $1,400 checks.

Don't toss it away on the stock market

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It’s not so much that investing is a bad idea in general. But pouring your entire $1,400 stimulus into meme stocks like GameStop is what concerns Orman most. Investing shouldn’t be a game, she says — it should be a well-thought-out strategic component of your personal finances.

Instead of taking cues from the internet, once you’ve already set aside what you need for savings and retirement, pick an investing option that allows you to build a balanced portfolio that will grow steadily and reliably over time.

These days, such a portfolio is easily achieved. A DIY investing app can automatically invest your spare change and keep your money growing without your having to take a big swing at a trendy stock or cryptocurrency.

Simply add Capital One Shopping to your browser, and shop like normal. This free tool does the work for you.

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Don't spend it all right away

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After a full year into the pandemic, Orman recognizes you may be keen to use your stimulus funds to pay off some of your outstanding balances.

But, she says, that would be a mistake — especially if you’re still looking for work.

“Do not rush, especially if you do not have a job yet and everything isn’t going the way you want it to be, do not rush to take that money and pay off your credit cards.”

If your bills are piling up and expensive interest is adding to your troubles, a better option would be to get a lower-interest debt consolidation loan to help you better manage what you owe — and pay it off sooner.

Don't skimp on saving

Emergency fund in the glass jar with cash.
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Before the pandemic hit, Orman had long counselled her followers to build up emergency funds for at least eight months.

Other finance experts had suggested that was more than necessary and three or six months was all you’d need.

“What happened last year? Three months would have gone in three months,” Orman says. “And then what would you have done? Now it has come to pass that eight months wasn’t even enough.”

Because of the pandemic, Orman now recommends having at least 12 months socked away in an emergency fund.

“I don’t think you can have too much of an emergency fund,” she adds.

Taking some of your stimulus money and putting it into your emergency fund is Orman’s top suggestion.

But make sure your cash isn’t going to just sit in your bank, working for someone else. A high-yield savings account can help your emergency savings grow on its own.

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Don't overpay on bills

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Not all bills have the same priority status. Orman cautions against taking all of your stimulus money to pay down your credit card or car or even to catch up on your rent: “Don’t do it. You’re going to be very sorry.”

“The key to your freedom is having that security, that emergency fund. Keep it right there and do not spend it.”

Her advice is to continue to pay the minimum on all of your bills and play it safe until you’re gainfully employed again. Or at least until things in your life are back to normal, financially speaking.

If you can, shop around for better rates on recurring expenses like your auto insurance bill — you could save up to $1,100 a year by comparing rates. That way you’ll be able to hold onto more money without having to give up all of your stimulus.

Don't forget about insurance, retirement

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We might be dealing with a prolonged crisis right now, but it will eventually end. If you have the bandwidth to think a bit about the future right now, you won’t regret it.

If your health insurance has lapsed during the pandemic, now’s the time to shop around for an affordable plan before the current open Obamacare enrollment period closes Aug. 15.

New subsidies introduced by the Biden administration will save Obamacare policyholders $600 a year, on average.

Looking further down the road, if you can spare some of your $1,400 check, putting it towards retirement is a great idea. If you haven’t already set up a retirement account, the sooner you do, the sweeter your golden years will be.

Do this instead

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Orman’s overall lesson is to make that stimulus check last as long as possible. There’s no guarantee we’ll get a fourth check so if your household already has or is set to get a check, stretch those dollars as far as you can.

If you didn’t get a check this time or maybe the money doesn’t look like it will last as long as you like, you have some options.

You could trim your budget to "make your own" stimulus check.

For example, maybe it’s time to permanently log off any streaming services or other monthly subscriptions you’re not actively using.

Or do you have a hobby or special talent? Turn it into a side hustle to bring in extra income.

Finally, download a free browser extension that will automatically scour for better prices and coupons whenever you shop online.

Just by finding a few creative ways to cut back, you can possibly wring out another $1,400 from your current budget.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Sigrid Forberg

Sigrid Forberg


Sigrid is a reporter with MoneyWise. Before joining the team, she worked for a B2B publication in the hardware and home improvement industry and ran an internal employee magazine for the federal government. As a graduate of the Carleton University Journalism program, she takes pride in telling informative, engaging and compelling stories.

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