Economic Stimulus?

Most of you are jumping with joy that you're probably going to be getting a big, fat check from the government.

You may be thinking, "FREE MONEY, BABY!!!"

"Letting Americans keep more of their own money should increase consumer spending, and lift our economy at a time when people otherwise might spend less," President Bush said. The idea in theory sounds like it will work smoothly, but I have a much better idea that will eventually increase consumer spending, and in turn, cause the economy to flourish: encourage freedom from debt! Reign in the credit card companies and strive for entrepreneurism.

But most of all "Know the rules before you play the game!"

Don't try to re-invent the wheel all the time. Take full advantage of existing laws that allow you to virtually eliminate your tax liabilities.

But I digress...

The last time a stimulus rebate like this was issued was in 2001. A recent study revealed consumers spent two-thirds of those rebates within 6 months of receiving them.

Do you have a game plan already for what you'll do with your rebate this time around?

Make the Money Work For You

Don't wait until it comes in the mail to formulate a plan, and whatever you do, do NOT spend this money before it gets to your hands! Here are a handful of ways I recommend making your tax rebate work for you;

1. Pay off debt.
This may sound like a no-brainer, but I already expect that few people will actually do it! There's really no reason NOT to throw this "free" money toward your debt snowball. It will get you one step closer to being debt free.

2. Invest it.
If you put this big chunk of change into a mutual fund for a few years, you'll actually receive TONS more money than just the initial $600 or $1,200 check this summer.

Say you get back $600 and put it automatically into a mutual fund averaging 12%. In 2018, that one-time investment will grow to approximately $2,000! If left in for 20 years, it will be worth about $6,500!

3. Have some fun.
I'm not a total buzz kill. I actually do like to have some fun with my money, and I encourage you to do the same! There's nothing wrong with taking your spouse out for a nice dinner or buying that new pair of jeans with some of this money you could be getting. Just stick within your boundaries, and remember that the quicker you get out of debt, the more fun things you can do and the more money you can give away to bless others.