For the past month or so there's been announcements about President Bush's Economic Stimulus Plan. The plan encompasses tax rebates for individuals and families as well as incentives for businesses to invest.
I will not rant and rave in this post (maybe in another) about the fact that maybe this money could be put toward our deficit or that if the government practiced better money management and stopped spending when there was no more money or was proactive instead of reactive when his mortgage mess was inevitable to anyone seeing and hearing all these 'creative' financing techniques.....(whew..breath)..... we wouldn't be having this problem...yada yada ya...and yes I'm aware there are many complicated facets to American economy. Also, I will unashamedly take my check once it arrives, whether I think this is the best plan or not!!! $-)
ANYWAY....I ENCOURAGE YOU to create your own economic stimulus plan! Bush wants us to get our income tax refunds and these additional rebate checks and SPEND, SPEND, SPEND. Help the economy!!! I say help your household's economy! Because at the end of the day we will be responsible for our own financial well being - not any government official.
Fellas, I know you love your cars, your gear, your tools, ...Ladies, your shoes, purses, furniture, etc...but let's pump the brakes and think long term. Determine to stay away from the mall or wherever your spending weakness lies. I know, I know - there are all kinds of wonderful things to buy...I personally have my eye on a lovely coach purse...but NO I will refrain!!
Why not use both of these checks to give yourself a leg up?:
Pay off a bill:
Get caught up on household bills or get closer to being debt free by applying this lump sum toward your debts? (You know that smallest to largest debt list, pay off smallest first?)
Save:
Yes, save! Think long-term, this money could begin your emergency fund or add to it.
No bills? Your Savings Tight?:
Invest it in a mutual fund - look for growth, balanced, global or aggressive growth funds, do your homework first.
OKAY..... TIMEOUT, YOU MEAN I CAN'T SPEND ANYTHING?!!!
No, I always believe in treating yourself. Even if you are knee deep in debt, go to a movie or buy something small. The goal is not to restrict yourself to no end, but it is to help you make smarter financial decisions so you can see the day when you receive a lump sum and you don't HAVE to spend it on a necessity because the necessities are covered.
See blog from Jan. 23rd 'Tired of Living Check to Check'
2 comments:
I'm either going to put my refund check in my savings account or use it to help pay down my credit card debt. I'm REALLY trying to get to the point where I don't have to use credit cards anymore. My debt isn't bad, but I just can't seem to make any headway in paying it off. Barb
Hey Barb, thanks for visiting...if you already have at least $1,000 in your savings account I would recommend you putting the refund towards your debt. Remember to pay the smallest one first.
It takes time and diligence to get out of debt..don't worry, as long as you continue to pay extra on it each month you'll soon see the light at the end of the tunnel.
Stick with your plan and one day, sooner than you think, you'll be debt free!
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