5 Ways To Spend My Economic Stimulus Rebate
photo credit: jonnyphoto
According to the IRS Economic Stimulus Calculator, the Economic Stimulus Payment Schedule, and this handy dandy Where’s My Stimulus Payment status form, I expect to receive a $900 check sometime this week – hopefully tomorrow. So I’ve decided to do a variation of BK Diva’s fantasy vs. real world analysis. Fact or fiction, here are 5 ways I may consider spending my economic stimulus rebate.
1. Go shopping!
Surprise, surprise! LOL!
What? A girl can always use some M.A.C., a new suit, wrap dress, handbag, two or three pairs of shoes… You know, a little something something. I’m just saying.
2. Save it.
Last month, I increased my eFund goal from 15k to 20k. Da hell was I thinking? This eFund is a moving target so I guess I need to tighten the bootstraps. With an $18k balance, I only need another $2k or so. By the time I hit the next milestone, I’ll probably bump it up again. Weird, huh? Saving is addicting!
I also have that ‘other’ goal I’ve been ignoring all year. You know the one, invest $5k in taxable non-retirement accounts. My plan is to buy index funds through Vanguard, so I need at least $3k to get started.
3. Spend it on a summer vacation.
Although Paris is no longer an option for this year, I am planning two outings within the next few months – one with my fam and the other with my friends. Both can be managed with monthly cash flow, but it sure would be nice to have extra money earmarked for acting a plum fool. LOL
4. Pay bills.
My car insurance policy expires in mid-June. Currently, I pay $460.30 for six months and I’ve been a good girl on the highways and biways. So I’m going to shop around for a better premium. Hopefully I can get it down to $425. Then again, with my luck, I’ll get a speeding ticket on June 1st. I aint lying!
Let’s see, what else?
Oh yea, my tags also expire in June. I’m not sure what the costs will be, but I assume I will have to pay for another state inspection, property taxes, and fees for the license plate and registration. If my memory serves me correctly, that could be about $350.
One more thing, BabyGirl is having her braces removed on Monday and she’s being fitted for retainers (top and bottom). Those little things are expensive!! Can you say a few hundred a pop?!?!
5. Spend it on my rental property.
My tenant is moving out at the end of June, so that means cleaning, painting, and advertising. Depending on the extent of the wear and tear, some of the expense will be deducted from the security deposit, but I know I’ll have some out of pocket expenses as well. Then, finding new tenants will be a challenge in and of itself. I’d rather assume the carrying costs than have a tenant from hell. So I’m estimating ~$500 out of pocket if things go well and ~$3k out of pocket for the worse case scenario.
BONUS: Donate it.
As a result of my recent personal issues, I discovered a wonderful non-profit agency that has been heaven sent. Prior to this year, I didn’t know they existed, but they helped my family overcome a situation that would have otherwise been catastrophic. I can’t remember how I found them, but I do know that God doesn’t make mistakes. Since they operate 100% on donations, I would like to pay it forward for the next family who may need to use their services.
Which option(s) do YOU think I should choose?
Which option(s) do you think I will mostly likely choose?
How will YOU spend YOUR economic stimulus check?
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I’m saving my half. I have a goal in mind for my cash on hand acct
I like the idea of paying it forward.
I’m saving half, spending some and paying an unexpected bill.
Savings! Need to build up the e-fund.
Save & Donate! That’s my plan. I just can’t decide who to donate to. Too many choices.
I vote you should donate it. I think you will donate some and save some. All the bills you mentioned would have been handled with your regular earnings anyway, so I’m thinking this is extra. Since you’ve increased your e-fund goal (extra) and you’ve found this new non-profit (extra), I’m guessing the extra will be used for extra…
I’m not getting a rebate check.
…correction, I’m not getting a stimulus check
Sawwy. :-(
I haven’t joined the ranks of the rich and fabulous yet. ;-) [-SM]
Hmm I need to update that post and talk about how I’m NOT getting my stimulus because some *4@%^$%$ STOLE MY IDENTITY.. but errrr :)
I say DONATE 1/2.because that made a huge impact and there is NOTHING like returning a favor no matter HOW small :).
Flip a coin for the rest..they are all GREAT options but hey depending on the day it may be a need for shopping *retail therapy.. there is nothing wrong with it!!!* you actually left out a major one..
DRINK WINE AND EAT GOAT CHEESE :)
You killin’ me with the goat cheese, Celie! I would buy some, but I’m just gonna come to your house to eat it. LOL [-SM]
My $600 is going straight to the e-fund baby!! I also wanted to thank you Single Ma for all of the great advice. I’ve paid off all of my CC debt (a little over $4K) and now I’m moving aggressively towards my car and student loans.
Stay blessed.
~ K-Dubs
Congrats on your CC debt freedom! [-SM]
Split it 5 ways. A little for each category.
I’ve been thinking about this a lot. I wont be economically stimulated for another couple of weeks so I’ve had time to think.
Part of me wants to take my girls on a much needed family bonding vacation. Part of me wants to throw it in my efund. Youre right, saving IS addictive. Part of me wants to pay bills. Little miss has quite a few hospital bills that I’ve been chipping away at a LITTLE bit at at time.
Another part of me wants to just spend it on me. I want a good massage and some time away to just do me for a minute.
I understand. So much you want to do, but so little (money and) time. [-SM]
Most likely though, I’ll put some in the kids savings, my efund, get that massage and find a way to help someone else out with it.
I never even thought about donantion….thats bad huh?
Yes, that’s bad! I aint gonna lie to ya. LOL [-SM]
But now you have me thinking of a way to help someone in some kind of way. Gotta start praying on that right away.
Think of it like tithing. Plant the seed and await your harvest. [-SM]
Home improvement! Bye-bye, icky carpet. Bye-bye, water-damaged drywall….
split it three ways, save it, spend a little (on shopping or vacation) and donate the rest!
I sent all $600 to my EF because my account is only sitting at $1500!
I did have a little M.A.C. splurge last month…The modern smokey eye look is so fabulous!
I would go with the DONATE !!!!
Not a problem for me since the government decided I don’t need a stimulus check. :)
That’s what happens when you flossing with Big Brother Dolla Bill. LOL [-SM]
I really like the donation idea – it sounds like this organization would be very deserving and you have a great reason to do it. I don’t like options 4 or 5 — you would have to do those anyway. I could see any combination of 1, 2, 3 and the bonus.
My husband are going to stimulate the economy of Las Vegas this summer with our payment. We’ve been planning this trip since even before the stimulus payment idea was in committee, so it’s just a matter of cash flow timing: we’re going to make the reservations this month.
My plan was to use it to pay off a small store credit card. I’m hoping this would increase my credit score by about 10 points.
But, I sure could use some new work clothes and who couldn’t use a new pair of shoes.
And I have plans for a week in Florida this coming July, and this would be great for bar hopping for hubby and me………..
I would donate the money to the organization that you talked about since they were so helpful. I believe that it always comes back to you tenfold.
I get 600 so, here is how I will spend it
$300 debt
$200 savings
$100 little something something for moi
I think we are getting back $1500.
$500 to help church payoff mortgage
$500 to youth mission to rebuild New Orleans
$250 extra to my husband’s family in Colombia
$250 to fix up our bedroom so that my hubby and I actually want to spend some time there <—you think the economy is in a recession??? :D
You know I peeped that hidden message. Lawd child, g’on and give $750 to the church (the extra $250 is to bump you to the top of the prayer list LOL) and spend the other $750 on your bedroom. The youth mission and hubby’s family will understand. You have an emergency! LOL [-SM]
I should be getting $900 and I have decided to use that money to reduce my debt! and of course, buy a little something for myself, maybe buy a cute dress for a boat cruise I am going on for work….:)
Where do YOU work? Can I slip you my resume? LOL [-SM]
I would donate some of the money! Although saving is very important, giving is equally important. Even giving $100 could make a difference. $100 is not much to some, but to others it could mean the world.
Even if you decide not to donate a portion of the money, I think you’re doing a great job of serving others. Your blog is one of the many ways that you give to others!
I like the idea of donating it or a portion of it to the agency that helped your family. Your other choices sound pretty practical, too, except for shopping… :-) But that’s satisfying in another way… and everyone deserves a little satisfaction when they can get it.
Only a man would say that. LOL [-SM]
Here’s my vote:
Donate $300 to the agency who helped your family.
Save $300, earmarking towards the Vanguard funds.
Spend $300: $200 for vacation fun $ and $100 on some fabulously frivolous shopping find!
@ BK
Sista say WHAT??!!!!
@ Single Ma
I think you should either donate or put it towards your rental property. First see what is the extent of the wear and tear of the property and how much you may have to dish out. $3000 (worse case) is a lot especially when you aren’t “ready” for it (I am not sure if you are or not). If it turns out ok then I say donate the money.
I think you will donate some of the money and put the rest to what ever you deem is necessary.
I am getting $900. I am going to put $100 on top of that and put it all in my E-fund.
All of it to savings? Good for you! [-SM]
I’m using part of mine to pay down debt and the rest for a weekend in Toronto.
I have a feeling you’re going to donate yours – I love paying it forward when I can.
i’m guessing you’ll split it up between different goals. now which ones, i don’t know. but it seems to me that you understand the concept of having cake and eating it too. which could include a new pair of shoes, a donation to the charitable organization (doing good AND getting a tax deduction – yay!) and maybe even another one of your priorities…
what i am doing? i’ve batted this back and forth a bunch of times and i still don’t know. it’s between contributing to my house fund, starting a sharebuilder account, and putting keyless entry/alarm on my car. (here’s a hint: i don’t think these things are mutually exclusive)
Sistah Ant
I do not think you can deduct donating part of your stimulus check because it is not your income. From what I understand it will be counted towards your next year’s refund (correct me if I am wrong here).
however it is not part of your income-you do not have to include it when you do your 2008 taxes.
As long as I have earned income and itemized expenses, I will deduct my charitable donations.
The stimulus will not be counted towards next year’s refund nor will it be considered taxable income. Meaning, if I’m entitled to a $1,000 refund next year, it will NOT be reduced to $100 because I’m receiving $900 right now.
The stimulus is an ADVANCE of a “credit” that will go into effect next year. Like the saver’s credit, child tax credit, etc. Except, this new credit doesn’t exist yet. It will be a NEW tax credit NEXT YEAR, but you’re receiving some of it NOW. Therefore, when you file your taxes next year and you claim the new credit (if eligible), you will reduce the “credit” by the amount of the stimulus rebate you receive this month.
Ex: Let’s say when I file my 2008 taxes next year, my eligibility for this NEW credit is $900 or less. I wouldn’t be able to claim this new credit because I’m receiving all $900 right now in the form of cash. Hence, the intended economic “stimulus” because “most” credits are not distributed in the form of cash (except EIC). It will simply be a wash. It didn’t exist before then, so no harm, no foul. But if my eligibility for the credit is $1,000 or more, I could claim the “difference” (i.e. $100 or more) to reduce my taxable income/tax liability – depending on if the credit is before/after AGI.
The main takeaway is to understand that the credit is NEW so any difference claimed next year is a NEW benefit that didn’t previously exist. Therefore, it is not counting towards or against anything but the NEW credit that you wouldn’t have otherwise received anyway. [-SM]
I think it’s awesome that you’re even think about donating… very cool. I say spend some on yourself and BabyGirl and donate the rest!
Notice “shopping” for BabyGirl was not on the list. After she started earning her own money, mommy buys necessities only. [-SM]
That should have been “thinking”.. sorry! :)
Hm. I think your car-related payments should be budgeted for, so don’t use the rebate to pay for those! I would donate some of it. Then it might be a good idea to stick the rest in savings and see if you need it for the rental. Then, if you don’t, invest it. Split it between the EF and the non-taxable account you want to open. Oh, and take a little out for the vacations :)
I used mine to pay off the new car we just bought!
donate and save.
Yeah, you are right
I was not thinking-charitable contribution is charitable contribution – does not matter if you contribute out of your stimulus check or your regular paycheck
I donno what I was thinking when I said that
Must have been half asleep
the part about new tax credit I did not know-thanks for the info
so anything I get this year, will be subtracted from next year’s credit if I qualify and then the difference between the two will be applied towards my taxes, right? The difference will be the remainder of the “credit” you can claim. [-SM]
and if my stimulus is larger than amount of the credit I qualify for then it will be added back as my income then? No, you will not have to report any part of your stimulus payment as taxable income. [-SM]
I am bit unclear on this, since I really have not been following anything on this stimulus payment at all-too many other issues to deal with right now :-(