What Will You Do With Your Economic Stimulus Check?
- Kill the [credit] card debt
- Add to it by getting a retailer bonus
- Buy an item that's good for the environment
- Save it in a retirement account
- Sock it away for college expenses
- Have needed medical work
- Take a vacation
- Give it away
CNN Money has similar advice:
- Spend it on environmentally-friendly items
- Get a retailer bonus
- Pay off debts
- Invest it in career development
As does Smart Money:
- Don't get a refund-anticipation loan
- Save it for your emergency fund
- Contribute to an IRA
- Pay off debt
- Save it for college expenses
- Pay bills, mortgage, or rent -- 24%
- Save it -- 22%
- Pay down debt -- 20%
- Spend it on food, gas or other essentials -- 13%
- Spend it on non-essentials -- 11%
MSN Money takes a different course and suggests you invest your rebate. But with all this advice, what will people do? As of this writing, an MSN Money poll of almost 150,000 people listed the following as what respondents planned to do with their rebates:
That said, responses to the issue are very widely varied.
In the end, the prudent choice seems to be to pay down debt or save the money. The fun thing would be to blow it on a big screen TV or some other sort of purchase. There are certainly lots of choices -- but what do you plan to do with your rebate?
— FREE MONEY FINANCE
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Comments:
Used a tip from Consumerist 'deals of the day' to finally get my first flat screen TV. $599.00 for a 42".
And since my cable company provides one free converter box and will not sell more (only $10.95 monthly rental x 2 TVs), in less than 3 years, the savings in rental fees will pay for the TV,
Thank you Consumerist!
We're paying off the rest of the very inexpensive used car we purchase, so vote 1 for debt.
The rest is going to pay for our trip to Albania and Greece in 4 weeks. Too bad America we're going to go help another country's economy!
Seriously though, as nice as it is to get free money, this stimulus check really isn't substantial enough to make a big impact.. in my opinion.
If the powers that be would, ya know, think ahead a little bit, they'd realize that paying off debt WILL help the economy.
Let's say I owe $1,000 (I wish!). If I'm like lots of people and have high interest on that debt, a substantial amount of my monthly payment is paying that interest and not making much of a dent in my debt. If I go ahead and pay the damn thing off, I've got that extra money each month to spend on things like flat screen TV's. :)
New wristwatch (I'm a leftie so it's hard to find right-crown watches but I finally found one I like that isn't too small) and the 3G iphone.
I only have a car loan debtwise and I'm already massively overpaying that to pay it early, so I'm not going to use my stimulus check for that.
I already set aside savings each month.
@Buran: Oops. LEFT crown watches. I found a mens' in 43mm (about the largest I'll wear). Much better than the tiny 24mm Dakota southpaw I have now. Plus it's black and looks mean.
I'm going to use it to increase my carbon footprint. Not sure if I'm going to indefinitely leave my water running, leave my AC set at 55, or drive my car in such ways to increase gas consumption. I'll figure something out.
Just need to cancel out at least 3 other people using theirs to help the environment.
I kid I kid.
@Bladefist: Thank you, for the laugh. :D
I'm paying off the deposit on a dog for my daughter, bank some, pay-ahead some bills, take $1 and "go nuts" stimulating the economy.
New computer! I should have paid off our last commercial student loan (knock on wood!) by the time it arrives, and our computer is sputtering and dying. (And we have no other "bad" debt.)
Although I might use the actual checks to go get the Kroger gift cards and just mentally shuffle the money around. :)
@Starfury: Be careful -- if you don't pay it off, you get dinged for interest on the full amount for the full 12 months, not on just the amount you have left to pay.
Me and my fiance are using ours to help with the first/last/security on an apartment. This is the last year we will be renting before we buy our house! Woohoo! We have a little credit card debt, but that is already on a set payment plan (that my fiance came up with) and will be paid off by summer of '09. A lot of people I work with are using their check to help pay off debt.
I'm using it for a vacation.
I've got a plane flight that's paid for by my tax refund (about $300 round trip) and a car rental that's paid for by my stimulus check (about $600 for 18 days). I'll still need to pay for hotel, but I prefer to stay in hostels when I'm traveling alone, so that cuts that cost down.
(As to why I'd fly if I was going to drive around -- I calculated that the impact against the total cost of ownership of my car would be almost break even -- especially once you consider $4 / gallon summer driving.)
I'm already putting away several thousand dollars on top of my retirement plan ($100 a week auto-transfer from checking to savings), so I don't feel guilty about treating myself.
I'm not worried about job loss, at least not for this year, as the place I work is still growing instead of shrinking.
And by the time I get back from vacation, the only debt I'll have will be and credit card expenses incurred during the trip plus my student loans. I consolidated the loans down to 2% interest rate, so I'm in no great hurry to pay them off.



























hmmm, perhaps I'll fill my car a few times and buy some groceries ... that should use up my check fairly quickly.