If you’re one of the lucky ones getting an economic stimulus check, you owe it to yourself to think about five ways to spend your extra loot:
1. Pay off your credit card debt. If you’re carrying balances month to month on credit cards, the first thing you should do with the stimulus funds is pay down the debt. Don’t go out and buy something else! Reducing debt is good for our nation and for your pocketbook. Start by paying off the highest interest rate account first. And while you’re at it, see how you might make an additional payment on your car loan to avoid paying so much interest there too.
2. Make an extra mortgage payment (or pay whatever you can off the principal). Making an extra mortgage payment will cut the length of your mortgage, and thereby the interest you pay over the life of the loan. The higher your interest rate, the more you’ll save by making an extra payment.
3. Save it. While it goes against what the government wants us to do with this money, but we have gotten out of the habit of saving as a nation. Add to an emergency fund, retirement fund, or a 529 fund for your kids’ education.
4. Invest in a business (buy stock) or create a business of your own. Perhaps there’s a stock you’ve been wanting to purchase — well, the government just handed your fun money to get started, so have at it! Many Yuwie members have ideas you can start for little money too, so start reading their money making blogs. Or perhaps you can research ideas first — buy a book or course on how to sell on eBay or Amazon, or how to run a carpet cleaning business, open a bed and breakfast — whatever, invest in yourself.
5. Buy something American. If you simply can’t or don’t want to do items 1-4, then you owe it to the population to at least buy something made in the good ole U.S.A. Hey, this is an economic stimulus for the American economy — please don’t stimulate someone else’s economy.
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