Investing Your Stimulus Check? 3 Dangerous Mistakes to Avoid
At this point, many Americans are seeing $1,400 stimulus checks hit their bank accounts, and while some people are using that money to pay their bills or dig out of debt, others have a real opportunity to snag an even bigger windfall by investing that cash instead.
If you don't need your stimulus to cover your near-term expenses (say, you're still working and collecting your usual paycheck), investing it could be a very good idea. But you'll want to avoid these big mistakes if you decide to go that route.
If there's a specific stock you've been eying over the past few months, you may decide to take your stimulus check and scoop up some shares. But before you put all of that money into a single company, make sure your portfolio is diverse already. If it isn't, then you're better off branching out and buying stocks from different market segments rather than putting all of your cash into a single stock.
Source Fool.com
