Economic Stimulus=Check in Your Mailbox???
President Bush has endorsed an economic stimulus package to help boost a suffering economy that would total about 115 million dollars in tax relief to tax payers and businesses. You can read about it here.
Bush's proposal is for tax rebate checks for $800 for individuals and $1600 for married couples. This could actually happen since both Democrats and Republicans are pushing for economic relief. And it could happen soon!
The news on the economy isn't good and hasn't been in quite some time. Everyone knows about the housing market crisis, rising oil prices, and have you bought eggs lately? I thought I was buying gold eggs or something last week! Don't even get me started on the price of a gallon of milk. And since you know my family is addicted to cereal, you should know that we probably go through 10 gallons of milk a month!!
So, would this economic tax relief help? President Bush and Congress want to send you some money (your money by the way) and they want you to go spend the heck out of it! That's what economic stimulus means. Spend, spend, spend. And that is, of course, what most people will do.
But what about you or me? If you are on a quest to pay off debt, live below your means, save for the future, or invest in your own retirement are you going to use this money wisely and not frivilously! In my opinion, I think we should help our own household economy before the economy at large so . . . . .
It would be a great start for those just beginning the Dave Ramsey plan. Fully fund your emergency account and begin paying off debt.
If you already have your emergency fund in place how about adding the money to your debt snowball and really knock a large chunk off of a debt.
Or go ahead and fund a 2008 Christmas or vacation savings account or save to pay your next car insurance premium in full instead of installments!
If you have no debt (congratulations!) invest the money in a Roth IRA or other retirement plan.
And if you are past all the baby steps and are living like no one else then by all means spend it and help the economy!
So, if the economic stimulus package passes and you get a surprise check from your dear old Uncle Sam how will you use the money?
19 frugal friends said:
Spend frivolously? Ha! Fortunately we had paid off our debt, but DH just had hernia surgury so it would go to pay off that. And then we have a new baby coming in June. I've been pinching pennies and stocking up on diapers at CVS after I have accumulated too many extra bucks (I have about $80 now and pampers are on sale next week).
I'm too cheap to just go spend without planning and being armed with a handful of coupons. :)
Ours will definitely go towards debt! So will our refund from 2007! It's a shame to spend so much time on coupons and save so much money yet still spend so much in the interest from debt! Hind site is 20/20!
It will go to a vacation we are taking in July! Or maybe to debt ... one or the other. But this is an important vacation (to spend time with my dh's mom who we generally see about once a year). And even though we are still paying off debt and DR would tell us to wait, well we aren't.
Right now, we are taking everything extra and sticking it in the vacation fund. When we get back from vacation, if anything is left over (and we will be frugal on vacation since we will be staying with a kitchen so we won't have to eat out all the time (yeah!)) then it will all go straight to the credit card.
I admit, I do hope it passes because it would really mean our vacation fund would be fully funded and up the chances of having extra for that debt!
This post is AWESOME, Angie!
We'd put that check toward our emergency savings. Not exactly doing our part to spur the economy, but I'm sure other people will more than make up for it :)
Wouldn't THAT be grand!?! We don't really have debt now, I have worked hard to pay it off, but neither do we own a home yet. That is, Lord willing, in the plans for THIS year, so it will be going into a 'HOME' fund so we can cover moving expenses and secure a goodsize downpayment.
Gotta say, I think you are RIGHT on about the economy starting in the home. I think the same is true for education, respect, EVERYTHING. IT all seems to stem from the home.
Debt, of course! That is where any extra goes. Soon we will be debt free - what I wish I had known before I accepted those credit cards...
I hadn't heard about this yet. That would be incredible, we could use it to pay off what little debt we have remaining. Praise the Lord, what a great surprise that would be.
It would go to our debt what there is left anyway but here MN this happened a few years ago when Jessi Ventura was gov. It was so stupid. MN was mad a Jess for doing this but they had no problem spending it. You just can't make people happy not matter what you do.
To pay off debt. We own both vehicles and our home, but still have some debt (cc). Hope to get it paid off soon!
I about came to a stand still when I saw this on then news--I got giddy about it and ran to my husband. WE are confident it would go to our snowball. We have an emergency fund up, we have credit cards, our last 3 debts are my student loan, and two cars pmts.
Yes I know Dave Ramsey says to sell the cars. But our warranties are good for quite some time and selling tem we would loose money, so we have decided to just pay pay pay and never buy new again.
My student loan is about 7,000 so our goal this year is to get it gone so 1600 would definately help that out! --We will also be getting a good deal of tax money back anyway---so with tax money, us paying extra, and this bonus it really looks quite doable!
oops--I left out the word "no" before credit cards
we have no credit card debt and an emergency fund
We have 3 debts--student loan, and 2 car payments
Pay OFF DEBT.... Save some too!
jeannie
We don't have any debt, so this would totally go into our IRA or savings.
I will definitely be investing it in my money market account. Blessings!
I'm hoping very much it will go into our big emergency fund as we hope to start building a house in the spring. We have cash for 2/3 of it, and of course will only do a small mortgage for 15 years. Yeah!
Our will go into savings. We should be out of debt (except for our home) by March, so it would be great to have this to start building some savings.
It would all go towards debt...so it would be gone as quick as I received it!
OK, I have been checking back here every day and no post... Are you having a baby?
Post a Comment