What Will You Do with Your Tax Rebate?

by Mary Ann Romans | More from this Blogger

All over the news is a proposed economic stimulus that would come in the form of a tax rebate for Americans. The rebate, if it is confirmed, could provide married couples $1,200 or more, plus another $300 per child. (Singles would receive $600.) The tax rebate check is intended to get Americans to spend the money out in the retail world, to boost the economy and provide more jobs.

The rebate is a bit of "found" money that many may spend on items for themselves or their homes, such as high definition televisions, gaming systems, new clothes, home improvement, etc. At least that is what the government hopes. And the rebates are just enough to make larger purchases seem less painful. So the rebate may even lead to spending above and beyond the actual dollar amount of the checks in each family. If you do get a rebate check, what will you do with it? Will you be frugal and save it? Will you pay off some bills? Will you use the money as an opportunity to stockpile some groceries for leaner times ahead? Invest in some new more efficient appliances? Or maybe you will turn your heat up in your home just a little higher? You might consider paying down a bit of your mortgage premium. You could also invest the money in the stock market while prices of stocks are low. Of course, you could do something fun, such as go on a vacation or buy something you really want.

I am always curious to see what the frugal-minded will do with any extra found money. I haven't even begun to think about what we might do with this small windfall. The likely answer is that we will tackle one of the many projects around our home, making us more comfortable and increasing the appreciation of our home. But I hope that we will save or invest some of it, too.

What are your plans? Have you ever has an unexpected windfall of money? if so, what did you do with it?

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, online content manager, wife and mother of three children. She lives in Pennsylvania in the middle of the woods but close enough to Target and Home Depot.

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