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Spending your Tax Rebate Check

What you should do with your tax rebate check.

If you currently live in the United States and haven’t heard of George Bush’s tax rebate plan, you’ve probably been hiding under a rock.  If you’re unfamiliar with it, it was a bill passed by the president to help boost the struggling economy.  Depending on your situation, you can receive up to $600 per person.  Now, what exactly do you do with this tax rebate?  Do you go out and help the economy or do you save it?

Your emergency fund

Do you have an emergency set up?  If you don’t even know what this is, you’re in deep waters already.  An emergency fund is anywhere from three to six months of your expenses.  This is where you’re going to store this money for a rainy day.  If you lose your job or an unexpected emergency happens, where are you going to get money?  If you don’t have this type of fund set up, I highly advise you start an account today, it’s never too late.

Let’s attack those pesky bills

Whether you’re in debt or you’re caught up on your bills, it’s always a good thing to start attacking those bills that are bothering you.  If you’re caught up on your bills and paying them off isn’t a problem, then that’s great, we can use this money elsewhere.  If you’re currently finding yourself struggling with debt, make sure that you attack those smaller bills first and proceed to knock off the larger ones.  Keep in mind that you should be paying the minimums on the rest so that you don’t damage your credit score.

Why not invest

Even though the tax rebate is designed to stimulate the economy, it doesn’t mean you can’t save it.  It’s your money; you can do whatever you want with it!  If you haven’t started investing for the future yet, now is the time and it’s never too late.  Grab a book or start doing your research on mutual funds, stocks, 401ks, IRAs, and more.  There are so many ways to invest out there.  Make your money work for you.  Don’t let it just sit in a lousy bank account collecting next to nothing in interest.

Add a little extra to your house

Do you currently have a thirty year home mortgage?  If your answer is yes, does it seem like the bill is never paid off and it’s all going to interest?  Well, believe it or not, a few extra bucks on top of your current payment can go a long ways.  Sometimes a few hundred a month extra can knock off a year’s worth of payments down the road.  Refer to mortgage calculators online to see exactly how much you can save.  If you want to have a paid off house, simply add this check to your next mortgage bill, you’ll be thanking yourself in the long run.

These points should show you a little something by now.  Instead of going out and blowing this rebate check on a stupid video game or expensive dinner, why not invest into your future.  Over half of today’s Americans don’t even know how to save or even have a penny in their savings accounts.  Do you want to rely on the government when it comes to your retirement?  Your retirement is supposed to be enjoyable and relaxing.  Don’t keep spending today so you have to eat ramen noodles tomorrow.

Disclaimer:This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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