Today, President Bush is expected to sign into law his economic stimulus package containing consumer tax rebates intended to spike consumer spending. Many of you have heard about the rebates and are probably already thinking of the myriad of ways that exist for you to blow this money upon receipt. Congratulations, this is exactly what the Federal Government is hoping you will do with your check. Immediately spend it to jumpstart what many see as a sluggish current US economy.
Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the Internal Revenue Service, with an additional $300 per child. People earning at least $3,000 and those who owe little to no taxes would get $300 for singles, $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates - $50 less per $1,000 they make over those thresholds.
Unfortunately, a recent survey by the Associated Press shows that only 19% of consumers plan to spend their rebate checks. 45% said they plan to pay bills using the rebate check, while 32% planned to invest the money.
For those of you who may be on the fence on how to spend that pending windfall, here are five great ways to help the economy and yourself at the same time:
- Go on Vacation: Use that money to see the great US of A by taking a quick trip with family or friends to a local landmark or tourist attraction you have been putting off for years. Never been to the Grand Canyon in AZ or the Mall of America in MN, now is your chance. Gas prices continue to fall and hotels are offering cut-rate pricing nationally, all which conspire to ensure a low-cost option for a much needed family getaway.
- Home Improvement: Fix up your home by investing in new paint, carpet, or updating your appliances. $600 can surprisingly go a long way at Home Depot if you concentrate on the improvement of one room or area of your home. When the housing marketing bounces back, as its always prone to do, this investment now could reap $1000’s in increased equity in the future.
- Upgrade your Hobby: Do you collect stamps, comic books, tea cups or own horses? Use the money to add a new addition to your collections or upgrade your saddle. These little investments not only return money to our struggling economy but they work to promote personal emotional well-being and our long-term financial solvency. Read the rest of this entry »
While there are lots of programs out there to help you with your budget, there are very few designed with the specific needs of women in mind. Here are some money-saving tips that we have found to be helpful in saving money in a woman’s world.
Hair Cuts: While that $50 haircut looks great and makes you feel like a $1000 bucks, the credit card receipt puts a damper on things. Try changing every other cut from your regular salon to a simple hair cut studio and save yourself up to $30 per cut. This could amount to an extra $120 a year in your pocket.
Manicures/Pedicures: While they feel great and look great they don’t last forever. Buy yourself a cheap pumice stone and keep it in the shower for weekly exfoliation. Purchase yourself a nice clear coat polish and recover your manicure the second week to help keep it from chipping. This will make the polish last longer reducing your visits to the salon, saving you anywhere from $30 to $50 a year.
Hair Shampoo’s/Conditioners: High priced products smell great but regularly result in feelings of guilt upon their purchase. Make that high-price shampoo last longer by purchasing a lower priced product at your local retail store and use it every other wash to stretch out the bottles of higher priced products. There are also many great products in your cupboard that are little known but just as effective: beer makes a great shampoo and the barley and hops will soften your hair, olive oil or mayonnaise make very effective moisturizing conditioners, and eggs work well for conditioner on oily hair. Rinse well to remove the smell.
Investments: Due to the male dominated society that most of us grew up, family investment tips were usually passed from father to son and the daughters may not have been taught the same ideas. Learning to pay yourself first and make decisions about your investments are strategies that need to be learned and practiced. Check out investment magazines or websites for saving tips and ideas.
Debt management: If you have already bought too many bottles of that great smelling shampoo, or had a few too many manicures put on your credit cards, consider consulting a debt management company to get back on track. Most companies will help you learn how to lower your current credit card interest rates which will assist you in paying off that debt years faster while giving you tips to help you in the future.
Managing your money does not have to be complicated. Decide what is most important to you and cut out the little unnecessary items that you spend money on. Creating a budget that suits your needs while still allowing you some splurges will help you keep on track. Money isn’t everything in life, but not managing it can cause unneeded stress and worries, making it seem like a bigger problem than it is. Save wisely, spend wisely and you will live better.
Everyone likes money, at least a little bit, and finding ways to make more of it with little effort seems to be the American way. While buying that weekly lotto ticket could be your chance to win a quick $10 million, saving that $52 a year in a CD or high interest savings account could help you more in the long run. While I still look for the end of the rainbow after it rains, I can’t help but see the bills and receipts that are piling up daily by my computer at home. Earning money slowly isn’t as exciting as winning big at the casino, but it’s a more practical way to ensure my financial security in the future.
Invest in these 10 ways to stretch your dollar in 2008 and watch your financial fortunes soar:
- CD’s: Putting your savings into a CD will get you a higher interest rate on your dollar. Certificate of Deposits will range from 6 months to more than 5 years depending on what your needs are and the rate you would like on your dollar.
- Money Market Accounts: Similar to a savings account, with some stipulations, these accounts usually offer you a higher interest rate on your money and no time limits. Interest is usually paid monthly and money can be withdrawn at any time.
- High Interest Savings Accounts: Like Money Market accounts the high interest savings account will offer you more interest, but may have some limitations. The interest is still paid monthly and money can be withdrawn at any time.
- Awards Credit Cards: Many cards today offer awards to their holders from cash back to airline miles to train travel. Determine what program works best for your lifestyle and use it to your advantage.
- Refinance Your Home: Most loan companies are offering lower interest rates with no refinance fees. If you have had your loan a number of years and paid down some of the principal, then it may be time to refinance. Refinancing may reduce your interest rate and therefore reduce your monthly payment.
- Pay off old Loans: If you currently have multiple loans that you are paying on then it may be time to tighten your belt and pay off the smallest loans quicker. While you may be paying low interest on college loans or personal loans, it’s still interest which is essentially money going out of your pocket with nothing in return. Try paying additional money on the monthly installments to reduce this debt quicker and freeing up future money for better investments. Read the rest of this entry »