Wednesday, January 30, 2008

Tax Stimulus Check

I have had SO many conversations over the past few days about the stimulus check coming in the mail in the next few months. I am so surprised at how many people see this as "free" money.

Remember we have paid this into the system. It is OUR money. But the scary thing is that the government doesn't really have this money to give. They are printing it, in order to boost the economy. This means that the value of the dollar is plummeting. =(

In 2001, the government gave stimulus checks as well. Within 6 months, two-thirds of the nation had spent theirs. They hit the malls with their "free" money.

I wonder if they were as ecstatic when the following year, their tax refund was shortened because of their early withdrawal. That's right....when you cash it, it reduces your refund for the following year. What if your refund is less than your stimulus check? You pay the difference!

My suggestion? Either put it towards debt, or stick it in a great mutual fund and let it grow baby! That way if you owe money in've got it, plus a little more.

1 comment:

Terrace Crawford said...

I'm stoked about the check. I suppose I can anticipate one too. You have a good point here and offer good advice.