What are you going to do with your tax rebates?
You may need to ask yourself this question come springtime if the federal government economic stimulus package passes as it's expected to. The package is expected to boost the ailing U.S. economy that is currently in a recession; the plan would give billions of dollars back to consumers. The rebate check would range anywhere from $300 to $1200 per household as early as spring. Individual taxpayers would receive anywhere from $300 to $600, couples would receive up to $1200 with an additional $300 added for every child in the household.
Here are some easy ways to not waste your money.
1. Start an emergency fund. As fun as spending your money on appliances, electronics and clothes might be, starting an emergency fun will be much more rewarding in the long run. Everyone should have an emergency fund that can cover a few moths of bills in case something happens i.e. you lose your job, you go through a divorce, or you go on sick leave. You can use your tax-rebate check to get this emergency fund started.
2. Pay off your bills. If you're struggling with the bills using this check to pay them off would be a great idea. Not only would you have some extra money to spend but also you would be able to go to sleep at night knowing your bills are paid off.
3. Pay off your credit card. Credit cards can be great but only if you pay off the full balance every month. If you start to neglect your credit card bill you wont have anything good in store for you in the future. If you have a balance on your card especially if it's a card with 18% or more interest pay it off. You can save up to $730 if you transfer a $2,000 balance from an 18-percent card to an 8.25-percent card and then pay off your balance at a rate of $50 a month.
4. Invest in your future. If you have been putting off your retirement fund now would be a good time to start investing. You can use you Stimulus check to kick-start that retirement fund you haven't started yet. Most employers will match your contributions up to a point, they will contribute $.50 for every $1 you put in up to 6% of your income. You could also start a college fund for your child.
5. Invest in your potential. You should seriously consider taking 2 or 3 classes to give you that edge in the workplace. You might want to go back to school at night or whenever you have free time and get another degree. You might want to go to a computer school because every company needs an IT professional and someone who can fix/maintain a computer network because a computer network in a big company is essential to success. So take that check and do any of these things and you will be worry free when it comes to money. Money does not bring happiness but you can rest easy knowing you have money in your pocket.
DIY Finances: Financial Responsibility.
Get your Economic Stimulus Package Bill news at iTaxRebate.com
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