The economists have great recommendations on how to spend it to best stimulate the economy. Sure, they aren't saying how we are going to create jobs, make fair trade agreements rather than free trade agreements, but we would still listen to them. Right?
Isn't it great? Most Americans are going to get some extra money, money we hadn't counted on. Even better, we are being encouraged to SPEND IT! Go wild! Blow your windfall however you see fit! After all, it will benefit the economy!
I can tell you that after spending our tax windfall, which isn't really a windfall but a choice we made when filling out our tax forms, on a new roof, it made the rest of year very difficult. But we needed a new roof, and borrowing wasn't an option.
Typically, we would save part of our tax return for emergencies, for things that require money that our budget does not cover. Since our budget is tight, this could include two kids getting sick in one month, or hubby coming down with bad kidney stones. No matter how you slice it, that money went to our roof, and was no longer available for medical bills.
We learned an important lesson on giving all you got at the beginning of the year. The rest of the year meant tight squeezes and possibly late payments for things we would never want to make late payments on.
If one kid sick means $30 for a dr visit, do you deny the second kid a visit to save money? No. Even if your "extra" spending is $40 a month. You might eat meat less that month, or maybe your student loan payment is a bit late. And I can tell you that begging your dr to write out three different scripts on one co pay? Good luck!
So I have to wonder about an economic plan that declares "here is money, spend it!" It feels like a trap. After all, our first refund like this from Bush merely got deducted from our general tax return. Remember that? Yeah, it wasn't free money.
Pardon me while I suspect "free money" having strings attached.
With our nation's deficit being what it is, I wonder how we got the money in the first place.
I wonder if it means a bigger trade off down the road.
We aren't supposed to wonder. We are supposed to buy a bigger tv or better computer and not think about it at all.
Which makes me wonder even more!
I did see a newspaper article encouraging people to spend their newfound wealth on American made products, which would indeed help the American economy.
Apparently, paying off some credit card debt won't stimulate the economy like the powers that be desire.
That is unfortunate, because if I play my cards right, for the year and for the tax return plus bonus, we could pay off a vehicle.
That would be really nice for our budget.
Don't you wonder about money you are given and told to spend? Doesn't that go against most principles of financial well-being?
Shouldn't you first pay down your debts? Oh wait, that isn't the American way. Maybe at least save it for those high heating bills you know are going to come. I guess that isn't the American way either. But maybe, just maybe, you should hold on to the money we might be getting. Why?
Because things aren't going to get any better for our country financially. Gas is not going to get any cheaper. Heating your home isn't going to get any cheaper. Milk and eggs aren't going to magically decrease in price. Because things are probably going to get worse rather than better, and a nice financial buffer can help you sleep at night.
But what do I know? I have no degree in economics. I haven't studied the ebb and flow of foreign trade for thirty years. I bought my house for a steal, but didn't borrow against its possible worth when the housing market went nuts. I also haven't lost my house since the housing market went back to normal.
I participate in common sense living. When my hubby and I got married, we had a 15 year mortgage, and most of my money went into savings. When we had kids, we realized losing our house would be bad, so we went to a 30 year mortgage. When I stayed home to raise our children, we gave up costly things like cell phones and satellite dishes. I felt great when I got him a name brand suit for $4, plus dry cleaning costs. I buy bags of clothing, for us and the kids, for three or four dollars a bag.
Does it make sense to pay three dollars for a frozen pizza? Or $7 or more for a pizzaria pie? Or can I buy a gallon of pizza sauce for under four dollars? Can I buy 25 lbs. of bread flour and a lot of yeast for under ten, and it will last me the whole year? I found that even buying shredded mozzarella in surplus is cheaper than buying it in a brick and shredding it myself, if there is no sale.
Common sense tells me that I can make a lot of pizzas from these ingredients, more than what I could get even buying the el cheapo pizzas at the store (which the discriminating palate of my younger son finds inedible). I can make a lot of pizzas for $24 worth of ingredients, not including the pepperoni I like to add to my half of the pie. I bought it in bulk, but it is getting freezer burned and I need to package it better.
What I am saying is, don't tell me how to spend my money, because I know how to get the most bang for my buck. I have been doing it for years.
I won't be spending my money on cosmetics, long fingernails, pedicures or facials.
If the government sees fit to bestow a large sum on me, I will say woo hoo! But it will be a hard choice as how to spend it. While the debate between Catholic school and vinyl siding might not be the stuff reality shows are made of, it is a real decision for my family.
These decisions are what families face every day. Do we spend it? How? Who gets to decide?
In the meantime, I will keep scrimping and finding new ways to feed my family on the least amount possible, with as little gas needed to shop as possible.
Tax rebates come and go, but the need to eat, it never goes away
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