Don’t Spend It All In One Place: 5 Ideas For Your Stimulus Bonus
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With
the passing of President Barack Obama’s stimulus bill, Americans are
waiting to see how the recovery package will affect their lives. The
package includes tax breaks for families sending children to college,
purchasing a new car or buying their first home. Beginning in April
2009, millions of American workers can expect to get approximately $13
more in their weekly paychecks from a $400 tax credit to be given
throughout the year.
It’s
important to remember that this stimulus is only a helping hand to try
and boost the economy, and that we still have a very tough road ahead.
Plan, save, live within your means, and hopefully, we can come through
the other side of this crisis a wiser nation — and a wiser people.
As you determine how this affects your budget and spending, here are a few ideas to help you stretch that extra money.–todd williams
Get Current On As Much Debt As Possible
Between late fees (which can get as high as $40) and the damage done to
your credit score, it would behoove you to get as current as you can on
any accounts that have fallen behind. Get current and stay current.
Start An Emergency Fund
As the current economic climate proves, you never know when you’re
going to need some extra cash. Without savings, you will be
ill-prepared to handle any crisis that might arise. Most people either
take money from a higher priority expense to pay for emergencies or add
to their debt by charging. Try to set aside at least one month’s salary.
Plan For The Future
Add money to your IRA account or 401(k) — what you do with your money
today determines if your golden years will be spent in poverty or
prosperity. Make it work for you.
Start Investing
Contrary to popular opinion, you don’t need to have a lot of money to
start investing. Find a solid mutual fund and remember, the sooner you
begin investing consistently, the more opportunity you afford your
money to grow.
Make Additional Payments On Secured Debt
One thousand dollars — you can save three times that much by putting
$1,000 towards the principal on your mortgage.
