Our Game Plan for the Economic Stimulus Check
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It’s not exciting or ‘fun’, but our economic stimulus check will go towards knocking down the car loan. This is the best plan for us as it will eventually lead us to having an extra $235 each month to spend as we please (after the loan is paid for).
I’m so tired of seeing the stupid plans retailers have come up with on the stimulus checks. Some seem ok, while others seem just plain stupid:
- Sears: They are adding another $10% to your stimulus amount if you convert it to a gift card.
- Car Dealers: I’ve seen on TV where they are matching part or all of your refund when you buy a new car.
- Ace Hardware: Their stores will have 20 % off sales on selected merchandise.
- Kroger: They will convert a tax rebate check for a Kroger gift card, with a 10% bonus.
My opinion: Don’t give Sears your money! Taking your stimulus money and converting it to a gift card here limits your options severely. (Note: I have personal bias against Sears as I’ve seen them charge family members practically 30% a year in interest.) Something like an extra 10% for groceries would actually be useful for many people as we have to eat.
- If you have high interest debt, use the stimulus to pay down or eliminate it.
- If you have no savings, put it in a high interest savings account to start your emergency fund.
- If you have no debt and have savings, looking into depositing the money into an IRA.
- If all of the above is in place, have fun with the money. Actually you could send it to me.
Please, just have a rational plan for your economic stimulus check. Don’t waste this opportunity.
If this post was helpful, please buy me a cup of coffee. :D
May 12th, 2008 at 11:52 pm
Sounds like a winning plan. I agree on the sears thing. Unless you were currently furnishing a new home or seomthing, it’s a bad idea. I like the kroger plan and plan to use that.
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May 13th, 2008 at 9:14 am
Regarding your car payment. I read some good advice on the simple dollar: After you pay off your car, continue to pay the monthly payment into a savings account. This savings account will be your new car fund so that next time you need to buy a car, you can pay cash!
May 13th, 2008 at 3:57 pm
@ PT I also heard you don’t have to use your whole stimulus check with Kroger, unlike Sears which requires the whole check.
@Tom THat’s solid advice I enjoy reading The Simple Dollar. That’s similar to Dave Ramsey’s approach with car purchases.
May 14th, 2008 at 6:54 pm
Mine is headed straight to the ROTH!
I would say that it is an “ok” way to spend it on Sears if you’re going to be buying appliances anyway, you’ll make 10% on your money if you’re going to be spending it anyway!
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May 16th, 2008 at 1:03 am
good plan — agree with Tom, pay off car loan, then stash in a savings account. Good luck!
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May 19th, 2008 at 6:33 am
[...] how one personal finance blogger is putting her economic stimulus payment to work. Read Our Game Plan for the Economic Stimulus Check posted at Green Panda [...]
May 20th, 2008 at 12:16 am
[...] Green Panda Treehouse talks about her plan for her stimulus check. [...]
May 21st, 2008 at 5:40 pm
Paying off the car sounds like a great idea. It will free up a big chunk of monthly cash flow.
May 22nd, 2008 at 6:23 am
@ Monroe: I’m hoping to redirect some of that money into the student loan payments when they become due this year.