Smart Uses For Your Stimulus Tax Rebate
Posted on Feb 21 2008 | Tagged as: Finance
I bet you a dollar you are already getting excited about the big check you are more than likely going to get from the government. You might have even gone shopping mentally for some gadget you have had you eye on. That can be a fatal mistake.
Now, I’m not trying to rain all over your party, but the plain truth is, I am not really liking this government ploy to try to pull us away from a possible recession and stimulate the economy by suggesting you hurry out and spend the money at some local store. President Bush said, ‘Letting Americans keep more of their own money should increase consumer spending, and lift our economy at a time when people otherwise might spend less.’ I strogly suggest thatThe President needs to read The Fair Tax Book by Neal Boortz.
As recently reported in the Wall Street Journal, in December 2007, Americans had accumulated $944 BILLION in total revolving debt, most of it on credit cards. Spending with creditcards has sneaked into every corner of our American lifestyle. Consumers used to put only discretionary expenses on plastic cards. Currently, most peopleare so short on cash that they use revolving credit cards to pay for necessities like groceries and gas just to make it through the month. That is economic slavery.
The government’s plan may sound like it will work well, however,but I don’t think it is a good plan. In my opinion a more workable plan is to use that rebate check to reduce your debt on credit card balances. With less debt, you eventually willwill eventually have a bigger bank account to spend on things like groceries and gas. This is about basic survival for families like yours. There is not an economy on the planet that can flourish when consumers are buried under a mountain of suffocating debt.
Have you already planned out how you are going to spend your stimulus tax rebate? I’m supporting the plan of using your rebate to move toward gaining your financial freedom! Here’s my best advice.
Do NOT mentally go shopping and spend the money before it arrives in your mailbox. Instead, work out how you can utilize the rebate to improve your current financial condition.
Use the money to reduce your credit cardpay off debt. There is no good reason to go out and spend the rebate on ‘stuff’ when you can’t pay for the stuff that’s already sitting on your credit cards as debt. When you get to the point where you are FREE OF DEBT, you can begin putting money aside to buy that gadget or gizmo you have been salivating over.
If you are already debt free, then invest the money so it will make more money for you. It doesn’t take but a few years before that $600 or $1,200 dollars can grow to double or even triple the value at an 8 – 12% return.
Allright, allright. If you just HAVE TO spend some of the rebate on a splurge item, then at least limit the amount you spend by enjoying a nice dinner at a restaurant or buying that music CD or book you’ve been wanting. Then use the rest to pay off credit card debt or invest for your future. The faster you become debt free, the more often you can spend your income on enjoyable things instead of spending sleepless nights worrying about how you are going to pay off those credit cards and get out of debt.
Sandra Simmons, President of Money Management Solutions has years of experience helping business owners and individuals manage their money to achieve financial freedom. Watch the FREE 5-minute demo video on her website www.MoneyMgmtSolutions.com
- Sandra Simmons