Yesterday, I wrote about the 2008 Economic Stimulus Package, who is eligible, how much they will receive, and a few other details.
To be honest, I’m not so sure I agree with this stimulus package. I don’t think it will solve our economy’s current problems. But since the focus of this blog is not on politics, and stimulus package is already a done deal… I’ll leave that part of it alone! All I will do is ask:
How do you plan on spending your “rebate?”
Just select your answer and view what others have selected. (Feed readers will have to click through to participate… sorry!)
Loading ...Feel free to leave comments about your plans, or even your opinion about the plan itself. As I mentioned, I don’t think it will solve our economic problems. But, I’m not an expert in politics or economics!
For more information, check out the Economic Stimulus Package Frequently Asked Questions.
Update: The economic stimulus checks will be sent out a week early.
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Like Eli Manning I’m going to DisneyWorld!! Actually, the money will be sent to savings and Roth IRA. I guess I won’t really being helping the economy out too much. Sorry everyone.
FFB, I’m pretty much doing the same thing.
I’m going the unpatriotic route myself – adding a little to emergency fund and killing debt with the rest.
I will save some and send some to pay down my student loan.
I selected undecided. We might move this summer, and if we do, that money will go towards the expenses.
If we don’t, the money can go towards debt. Or maybe get some wisdom teeth removed. Or if my husband insists on a vacation, it’ll cover that.
But it won’t go towards buying STUFF.
Frugal Dad, I think the best thing for everyone to do is what is best for their personal situation. And a solid emergency fund is something everyone needs. Good on you!
Beachgirl, I don’t think you can ever go wrong with repaying debt.
Leah S., Not buying STUFF is an awesome plan! All of your ideas are for a good purpose, so I don’t think you’ll go wrong. Thanks for sharing.
Whatever we get, the kids’ll get their “portion” (knowing them it’ll go towards savings) and ours will somehow be divided into savings, debt repayment, and SPEND. Hopfully in that order!
Well it is going to depned I do have some debt I need to pay but I also have a baby on the way so it will probably be split between those two options.
stngy1, It looks like you’ve got a lot of plans for your money. I hope it works out well for you!
jarhead, I don’t have any children yet, but I know they are expensive! Maybe you can split the money? Put half toward debt, and half toward a baby fund?
Thanks for the comments!
Save it. They’re going to need it back someday, so I’ll hold on to it, gather some interest from it, and then return it after they realize that increasing our deficit and borrowing against our future is probably not the smartest thing we can do to improve our economy over the long run.
Caroline, I agree. This “rebate” is basically a mortgage the government is making against our future. I will save the rebate, because I know that some day, the bill will come due. I don’t think social security taxes will be around in the same form in 30 years, so I plan on placing the money in retirement investments. 30 years of compound growth sounds very nice to me.
I will be saving mine temporarily, but it will be spent on new vinyl siding for our house once we have enough saved up. We plan to live in our house for a long, long time, so hopefully it will be a good investment (vinyl siding lasts a lot longer than paint!).
Becky, Home improvements like vinyl siding can both prtect your home and increase the value. I don’t think you can go wrong there!
We’ve already received our tax refund and did some “mad money” spending with it (found a killer deal on Amazon for 50″ Samsung DLP just in time for the SuperBowl – it was an upgrade from a 27″ CRT). The majority though (if only barely) went to paying down the credit cards.
Anything we receive this summer will continue to pay off the outstanding debt plan.
I think “reduce debt” and “its already spent” are the same thing.
I think the readers here are not representative of the average American, of which there are two types. The first will use it to keep their head above water for one more month (utilities, minimum CC payments, etc) and the other group will hardly notice as they unconsciously let it go right out the window on a few more restaurant meals, an extra pair of shoes, and an extra tank or two of gas.
Most of it will get spent one way or the other. Maybe 10% will save and 20% may pay down a little debt, but next week or next month when the will balance ’somehow’ creep back up.
Business owners and investors will wind up with the only moderate-to-long term benefit of a propped up stock market and slightly smaller nosedive in home prices.
Braunn, I’ve got a similar 27″ TV in my house, and I think I would like to upgrade it to a large flat screen TV as well. I’m not sure when it will happen though, because it would require us to get rid of our current furniture (a large oak TV stand). Getting rid of that is easier said than done!
Afecto, I agree, the readers here aren’t representative of the general American public. I would venture that most readers are interested in improving their financial situation, so most people would either choose to reduce debt, or save/invest the money. But I thought it would be interesting to see a breakout of how many people vote for each choice.
“I think “reduce debt” and “its already spent” are the same thing.” – touche.
They are supposed to stop taking out SS taxes from people’s employment checks within the next two years. If they go ahead and stop taking the SS taxes out, people will no longer be able to drawl SSI after so long because the money will not be there. The government is wanting people to start putting their money in a retirement fund. People will have a choice on how much would be put in it or if they even want to use it. It would be crazy for the younger population not to have a retirement plan, because as they are unable to work they will have nothing to live on
I am using the money to pay back taxes on my house so that I do not get a foreclosure. The mortgage company will not pay it and will set up an escrow only if I come up with ALL the money up front. Why would I do that when I can just pay it? Boy am I sick of living in Michigan.
my husband and i will be blowing it all!!!! probably in 1 day=)
Our 20 year old washing machine is going to get replaced. And, we are going to stay out of the big boxes and buy from a hometown dealer who has a completive price and great service. This will keep some of the money in the community. Everyone should spend at lease a small portion in his town or neighborhood.
What we’re told will*eh-hum* stimulate the economy today(and in George’s likely frame of thought, earn him some ‘good-guy’ points)creates more work for the person who will have to clean up George’s mess. And on top of that to drop something like 45 Million for that nice letter telling us about this proposed(stupidity)package. How can people seemingly be not outraged about all this. Do people actually think a coupla’ extra dollars in thier pocket(which you better run out an blow becuase Georgie says so and we all know he’s soo smart)indicates a solution?!?! I’m truly worried about the future of we as a people/country. Can it be desputed that there now is concrete emperical evidence which proves we as Americans need to lose the ego and start pickin’ up more books?!?!!? The national average of intelligence around here is falling as(if not more)profoundly as our debt to foreign nations is climbing!! Sorry…. Had to vent.
My husband & I are going to be using it to pay bills. We live in western Nc & work is really really slow here. He does roofing & I am a stay at home mom to 2 small boys with 2 other children in school. It is very hard to make it and pay all of the bills as well. It would be really nice to spend it but every dime of ours will be spent catching up all of our bills.
Paid the last of our credit card debt off… thank God. Just have to worry about mtg & utilities now & keep the credit in check!
I thought this was an economy stimulus rebate!! If people owe back taxes, child support and college loans (I am sure there are many) and this check goes toward amount owed, how will this stimulate the economy?
No stimulating from me…the state got mine.
Cars? paid off
credit cards? paid off
student loans? n/a
college funding for kids? funded
401k? fully funded
IRA? fully funded
emergency fund? 12 months in the bank
Im going to the beach in Hawaii and laugh at the rest of you.
I think it is a good idea to give another check to everyone. Most of us spent the first check on paying bills or debts. It would be nice to have one to spend on christmas without the stress of making sure we have enough money for bills and christmas.
Sonya, Claremore Oklahoma
Sonya: Thanks for your comment. I understand the idea that extra money would be helpful to a lot of people, but I don’t think taxing a large company simply because they make a lot of money is the right way to go about it.
Based on Obama’s plan, which I outlined in this article: Do We Need Another Stimulus Check?, the math doesn’t make sense. Obama plans to make permanent tax cuts, but under his plan it will take 5 years to pay for the first year’s worth of cuts. If it takes 5 years to pay for the first year of tax cuts, how will future years be paid?
In this article, Reader Comment: We Need a Second Stimulus Check, I went on to discuss how additional taxes on oil companies will hurt everyone, including consumers at all levels (and not just of oil, but products containing petroleum, and items that require shipping). In addition, this would hurt anyone that holds stock in the oil companies – which is just about everyone in the US that own a mutual fund or 401(k) plan, including many state and government pension plans.
I respect your opinion, but I think this plan is a short sided view by Obama’s campaign and is designed to get votes – not help people.
Inflation is the answer because that is all the stimulus package is going to do.