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.

Photo Credit: dbking

Be Sociable, Share!

• 

• Should I Pay Debt First or Build Some Savings? Photo Credit:  Untitled blue Paying debt off or building savings is a question facing many people. Each situation is different, but in general I believe that people should save a cushion before paying off debt. How do you do it exactly? Build a One Month Cash Reserve It can be......
• What About A Stimulus Check For Students in 2010... or 2011? Back in 2009, The US Government announced that there will be a stimulus check for almost everybody. This was done to help people breathe a little bit (and hopefully have some of them spend the cash to get the economy rolling again). At the beginning of 2010, the US Government......

• Gift Card Madness I've always found gift cards a bit odd. Don't get me wrong, I like gifts and never turn them down. But it seems to me a gift card is the giver's way of saying, "I wanted to give you a gift, but either don't know what you want or am......
• Starting Kids Out on the Right Financial Track Many of the best lessons we can learn about personal finance are taught when we are very young. By laying a strong financial foundation for your children, you can help shield them from making catastrophic financial decisions in the future. There are some great options available out there that can......