Big money on the way
So now that you've got your rebate on the way, you may find yourself with an extra cash that you can use to buy that new TV, save for retirement or use to pay down debt. If you're not sure of when you'll be getting your payment, check out our post titled, “Economic Stimulus Rebate: When will you get your rebate?”
My wife just got out of the hospital after a 3 week stay for a blood clot in her left leg. It was a major health scare and we're just thankful that she made it through alive. Because of her long hospital stay, however, we will have to deplete part of our emergency fund to pay all the bills. Luckily we had good insurance and we'll only end up paying about $2000 of a total bill that will probably be in the hundreds of thousands of dollars. For us, finding a way to spend the $1200 economic stimulus rebate will be easy. We'll be just sending the check directly to the hospitals.
7 ways to use your economic stimulus rebate
Besides medical emergencies, what are some good positive ways to use your economic Stimulus rebate besides just spending it on a big flat screen TV?
- Pay down debt: This can be a great way to snowflake your way out of debt, although its more of a large snowball. Pay down your smallest debts and work your way up!
- Bulk up your emergency fund: Take the money you've received and put it in a high-yield savings account to begin building (or continue growing) your emergency fund. In uncertain economic times like these it's a good idea to plan ahead and make sure you're ready in case you lose your job, have health issues (we know about this one) and
- If you haven't already, start a Roth IRA: Use the money to purchase a long term investment. The earlier you start saving for retirement, the better!
- Pay for a needed home upgrade or repair: Use the money to replace your old crumbling driveway or to update your kitchen countertops. Try to use the money on things where you'll see a return on your money when you sell, things that will improve your home's value.
- Donate your rebate: We all have good intentions of donating to our favorite causes, or giving more to the church we attend. We have good intentions but rarely have the money to follow through. Take the rebate that you received and send it to your favorite good cause! Not only will you be helping out a good cause, but you'll get a great feeling from it as well!
- Go on a mini-vacation: Everyone gets stressed out and sometimes a few days off is just what you need. Instead of spending your whole rebate on a vacation to Hawaii or a cruise in the Caribbean, take a mini-vacation for the weekend to a resort nearby, or stay in a fancy hotel for a couple of days. Take the rest of the money and save it, pay down debt or invest.
- Make an extra mortgage payment: Make an extra payment on your mortgage and get it paid off sooner. The more of these you can make, the more years you can cut off the life of the loan.
What positive ways will you use your rebate?
So there are a few ideas of some positive things you can do with your economic stimulus rebate. Let me know in the comments what some of your ideas are as well and I'll update the post with your suggestions as the bottom. If you've posted about this topic on your own blog, let me know and I'll add you to the “related links” below as well!
Related links roundup
Economic Stimulus Rebate @ BeingFrugal.net
What to do with your economic stimulus payment @ Consumerism Commentary
IRS Economic Stimulus Check Promotions: 10% Bonus @ My Money Blog
15 Things To Do With Your Economic Stimulus Check @ freefrombroke.com