I’ve gotten a few emails and chatted this up somewhat ad nauseum with friends about the money coming our way from Bush’s economic stimulus plan. *sigh* Let’s be real here folks. We are in a recession. However, remain optimistic and protect yourselves. If you get an extra check from Uncle Sam this year, here are 3 tips on what to do with it.
1. Save the money
Put it aside and SAVE IT. Please don’t spend it thinking that this somehow helps the overall situation going on with the economy. If you are in one of the industries projected to see lay offs then you might want to pad that emergency fund. I can’t stress this enough. Be smart. Don’t make plans to buy a new TV or get yourself into more debt, see this as an opportunity to save your money and secure yourself in the event that things get worse.
2. Pay down debt.
If your emergency fund is at its goal, then pay down debt. Don’t get into more debt, but pay it off.
If you must purchase something, then make sure it is something that has long term value such as a needed kitchen appliance, auto repair etc etc.
My thoughts? This is just money that we give them during the year anyway, they are just giving us more of it back this time around. I fully believe that we will pull through, we just need to be patient and wise during this time.
Short and sweet. Hey, its a no brainer. Protect yourselves first.
What are your plans if you get an extra $800 or $1600?