by Chris | Now that Congress has passed and the President has signed
the Economic Stimulus Act of 2008, those who will receive a check can start
making a list of how they will spend their newfound wealth.
Our government borrowed from Peter (our children & grandchildren) to pay Paul (us) because our politicians are concerned about the economy ( its an election year ). The checks may have a slight affect on our overall economic conditions.
Rather than going out to dinner (stimulating our economy) or buying a new gadget (stimulating the Chinese economy), I would argue that you should look closely at your own economic situation and use this gift wisely.
Start with reviewing your debt situation. What interest rates are your credit cards are charging you? Pick the card with the highest interest and use your check to pay off your debt.
If credit cards are paid down – what about your car loans – mortgage? Are you stretching to pay those on a monthly basis? Look to the car loan first – since the interest you are paying is probably non deductible.
If your debt is under control, do you have an adequate emergency fund? Adequate means 6 months of income if you are the sole income provider & 3 months if both spouses work.
If your emergency fund is satisfied and you have children,
have you started college savings plans? No kids – no problem: how does your retirement accounts look?
If you are still reading this – no doubt you get my point. While I think that it is irresponsible of our government to send out checks – you need to be responsible with the funds you are about to receive or, in the end, you may have neither a chicken nor a pot!
Christopher J. Conner
Certified Financial Planner TM
Certified Fund Specialist
5200 W. Newberry Road E-7
Gainesville, Florida 32607
352-225-3132 (Fax) 352-225-3784
Other BN-Politics Posts:
* Chris: Financial Musings
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