Five Tips to Help Your Tax Rebate Check Go Further When it Comes
By Roy Primm
In few weeks millions of U.S taxpayers will find tax rebate checks in their mail boxes. Including you, if you earned under $75,000 last year. So, will you blow your rebate check ... or will you increase it?
In an attempt to stimulate the economy, Congress approved an economic stimulus package designed to jump start the economy. If you're single and earned under $75,000 or married and earned under $150,000 as a couple you're eligible.
Your rebate check will go out in May or June according to initial estimates. Congress and President Bush agreed on the amount and who will qualify. These are the terms they agreed on.
- $1200 maximum per family.
- Most individuals will receive around $600 ($1200 per married couple).
- And another $300 per child.
Although the main reason the stimulus package flew through congress and signed quickly by the President in record time is simple. They want you to immediately spend it on more consumer goods. This in turn will stimulate the economy and avoid or shorten a recession.
But many financial advisers see this as a bad idea for most families, especially in this financial climate.
More financial advisers suggest saving it for a rainy day or using it to pay down debt you've already accumulated. For example, credit cards, auto loans and student loans. Which according to the latest report by The Federal Reserve board has doubled in the past 10 years.
As consumer debt increases, salaries continue to stagnate or even decrease as more high paying jobs slowly move overseas. So if you're planning to buy that flat screen television, stereo or other depreciable item think twice.
1. Save it.
According to the Los Angeles Times the savings rates of Americans have been falling for the last 10 years. In fact, the levels has dropped to the same levels as during the Great Depression.
Those who can manage to save the most in the coming year will have the most advantages. In the coming years it won't be how much you have or earn but how much you can save that will count the most. So use this check as an opportunity to start a savings habit if you can.
2. Kill a Bill.
Another wise move to make with your rebate check is to kill a bill. credit card companies will slowly raise rates, fees and pass other cost on to consumers. Why? To make up for losses caused by the mortgage meltdown.
So, the more you can pay down - or better yet, pay off your credit cards the less vulnerable you'll be to rate, cost and fee increases of credit card companies.
3. Retire it Toward Your Retirement.
If you have a 401K plan, IRA or Roth IRA consider investing it and enjoy the tax free growth.
4. Invest in Yourself.
With many jobs getting downsized, phased out or moving overseas this could be your opportunity to invest in another job skill.
5. Start Another Income Stream
Another smart way to use your rebate is to start a home based business. Don't laugh, every 10.4 seconds someone in the U.S starts a home based business.
The key is to do your research - first! Use the internet and your local library both free - before spending any money.
The second tip is find something you like to do and you'll be on your way. You can do it. Millions like you do it everyday. You have a home, why not make it pay for itself for a change?
Note: There are hundreds of home based businesses that you start for under $500. Focus on the ones that fit with your personality, hobbies, and likes. Avoid the get rich quick schemes. Focus on the businesses that stress good customer service and value.
Starting or expanding your home based business is an excellent choice because you're not taxed on you rebate check. In addition, if you spend it on a business it's 100% tax deductible. This give you a double benefit.
It's my hope that you use this coming rebate check and this message - to continue looking for ways to spend wisely so you can save more in 2008. By Using these tips you won't blow your next check - but instead you'll increase it!
During the depression a reporter asked John D. Rockefeller how to grow richer in hard times. At the time John D. Rockefeller went from grinding poverty to one of the richest men on earth. His quick reply? "It's not how much you have - but how much you save that makes you richer".
Roy Primm Founder and Publisher of BlackHomeOwnerNews.com the largest source of information for black homeowners. Get free ebook 99 Ways To Live Better On Less Money at ShoppersCoach.com
Article Source: EzineArticles.com