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Loading ...How Will You Spend Your Tax Rebate?
President Bush recently announced an economic stimulation plan that will pay $100 billion to 117 million American families. Details are yet to be announced, but most families will receive a $600 to $1,200 check in the mail as early as this May. The plan hopes to the easy economic pains individuals are feeling from the housing crisis and current economic conditions.
How Will You Spend Your Tax Rebate?
Most people spend the rebate, which helps stir up the economy. According to the Federal Reserve, when tax payers received a rebate in 2001, 70% of the cash was spent immediately and thereby flushed right back into the economy. The remaining 30% was mostly put into savings.
Some people may see the rebate as free money, and therefore will spend it on things they could not ordinarily afford. Others will take advantage of the opportunity to help pay down their credit cards.
Savers will be happy just stuffing the extra cash under their mattress to add it to their emergency fund or high-yield savings account, while others have a goal in mind and may put it towards their fund for a family vacation or home improvements.
Those who do not have bills or credit cards to pay off may want to consider investing the money and taking advantage of the opportunities in the stock market.
For more information on the tax rebate, read 2008 Tax Rebate Stimulus Package Explained and What to Do With the Fed Economic Stimulus Package Tax Rebate, at Moolanomey.
How do you plan to spend your rebate check?
Millionaire Money Habit: Whenever you have the opportunity to have some extra cash, use it to pay off high interest debt, such as credit cards. Otherwise you have the choice to spend the money and enjoy it, or put it to work in an investment that will turn that money into more money and increase your worth. -RT
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February 10th, 2008 at 1:02 pm
I’m wondering, for those who will actually buy consumer goods with the check, what the effect would be if everyone bought only American-produced goods. Would this be a further boost to our economy?
February 17th, 2008 at 2:08 pm
I am adding mine to the steaming hot pile of cash. (Savings account.) All this talk of a possible recession, and state budget troubles in my state (when I work for a state-supported organization), has me concerned about my personal economy and my unemployment rate and my recession!
Seems counterproductive to get everyone in a tizzy about a recession and then expect people to spend the prebate check. If we’re nervous, we bank it….and no stimulatin’ goes on.
February 20th, 2008 at 5:35 pm
I will take my rebate money and SAAAAAVE it!!!!!!!!!!!! For every positive step I take toward reducing my household expenses and my debts, I will save it.