How To Spend Your Stimulus Tax Rebate
More than likely you are already pumped up about the big check you are more than likely going to get from the government. You may even be mentally shopping 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 don’t really like this government plan to try to stimulate the economy and pull us away from a possible recession by encouraging you to barge out the door and spend the money at some retail store. President Bush stated, ‘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 definitely thinkThe President needs to read The Fair Tax Book by Neal Boortz.
As recently reported in the Wall Street Journal, in December 2007, Americans had racked up $944 BILLION in total revolving debt, most of it on credit cards. Spending with creditcards has sneaked into every nook and cranny of our American lifestyle. In the past, consumers put only discretionary expenses on credit cards. Now, most peopleare so short on cash that they use revolving credit cards to pay for necessities like groceries and gas just to survive. That is economic slavery.
The government’s idea may appear like it will work well, however,but I don’t think it is a good plan. In my opinion a more workable idea is to utilize that rebate money 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. No economy can flourish when the public is buried under a mountain of suffocating debt.
Do you already have a plan for what you are going to do with your stimulus tax rebate? I’m encouraging the idea 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, plan out how you can utilize the cash to improve your current financial condition.
Use the rebate to reduce your credit cardpay off debt. There simply is not one good reason to hurry out and spend the cash on ’stuff’ when you already can’t pay for the stuff that’s already sitting on your credit cards as debt. When you are DEBT FREE, you can start putting money aside to buy that gadget or gizmo you have had your eye on.
If you don’t have debt, then invest the money so it will make more money for you. It doesn’t take very long 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 can’t control yourslef and just have to blow some of the cash on a splurge item, then at least limit the amount you blow by going out for a nice dinner or buying that book or music CD you’ve been wanting. Then use the rest to pay off 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
