So you got your economic stimulus check. What did you do with it. Do you think it helped?
A little while back I wrote about 15 things you could do with your economic stimulus check. When we received our check, via direct deposit, I told you we wouldn’t really be doing anything with the money. It deposited into our ING Direct account and it sits there earning interest along with our tax refund. Now don’t get me wrong, we have spent money, some of which could have been stimulus money. But we didn’t go out of our way to spend the extra money. Truth be told we had our kitchen re-done (if you could only see the difference!) and we’re looking to buy a mini-van. These expenses are possible because we try to stay frugal and save what we can, not because the government sent out checks.
You tell me – What did you actually do with your economic stimulus check? Do you think it helped the economy? There’s an interesting comment from Chris on Moolanomy’s article about a possible second economic stimulus check that correlates the checks going out with rising gas prices. The thought is that as people had more money in their pockets there was more of a demand for gas so the prices went up. Very interesting thought!
There’s been a lot of buzz going around about a second economic stimulus package. This talk may be inevitable, what with there being a presidential election this year. The state of the economy is on everyone’s minds in one way or another these days. I’m sure we’ll hear some interesting things from the presidential candidates in the coming months. In my opinion we don’t need a second economic stimulus package. At least not in the form of the last one. Giving checks to people to spend is not the answer. I think if there is another package then it needs to be something that really helps grow the economy. Perhaps we need something like FDR’s New Deal programs from the 1930′s? Remember, any money the government decides to give out will have to come from somewhere and have to be paid back.
What really may be the answer is to take the economy in our own hands. Take a look at your spending habits and see if there are places that you can trim some spending fat. Pete has some great ideas on how you can “create” your own stimulus check.
What do you think?
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{ 23 comments… read them below or add one }
Personally, I’m in favor of everyone taking matters into their own hands and being fiscally responsible. That would solve a lot of people’s problems. Of course, many people just look for the easy way out. Unfortunately, many people think the stimulus rebates are “free money” and don’t realize this is money the government could have used elsewhere. We will pay for it in the long run.
Thanks for the link to my article!
I agree with patrick, I think we should all go about increasing our incomes, and not depend upon the government to give us handouts – which aren’t really as free as we think they are.
My impression of the stimulus package? Election year pandering to get votes.
Our stimulus check went straight into our emergency fund. It was a big boost!
I doubt we’d spend a second stimulus check, but if I had to decide, we’d probably put it into a retirement account or use it to pay down our car loan. Tough to say.
I’m not really sure if this whole stimulus package stuff is helping, to be honest.
It’d help me to stimulate my landscaping, so yes, it helped me out, but yea, I think we’re all on the same page in saying that money could be spent in wiser areas of government, but that’s been an issue as long as I can remember…
I’ve heard alot bout this second stimulus package here in DC. Really a lot of what they want to do with it in my opinion is good. I’m not sure what the package would look like, but they are looking at stimulating the economy by pumping money into our infrastructure, thus creating jobs, fixing roads etc. This would have more of a delayed reaction in our economy, but perhaps wroth a try?
our stimulus check was actually held to pay (offset) what we owed in federal taxes this year so yeah…that was exciting. =P
Saved half and spent the other half on bills. I don’t know how much paying down my credit card bills helped the economy, but other than a lower credit card balance and a slight increase in my savings account, nothing really changed for me.
Now, if they added another zero or two to that stimulus check, I’m sure the impact in my house would be more visible.
The U.S. financial and Government systems are so corrupt that the only real effect of corporate bail-outs and government hand-outs is the devaluation of the U.S. dollar against the only real standard in the world – the price of a barrel of oil- set by very smart men, that will no longer tolerate the U.S. crooked fiat monetary system and have devised a way to set the price of oil in ANY currency, based on products bartered for a bbl of oil. American politicians can do anything they want to fool the American people, but they cannot screw the oil producing nations now that China and India ar bidding for their share!
We used our check to pay down a credit card. That just seemed like the most responsible thing to do with in in our situation.
We used ours in a very similar matter. Our was direct deposited and transferred into one of our 12 ING Savings accounts for a new house down payment. We did buy a small storage unit for our deck for about $70 too.
I don’t like the idea of a second check, I would rather see some financial education, which the PF blogging community is trying to tackle.
We put our stimulus money into our emergency fund.
I see this downturn in the economy as a natural correction of sorts. It will pass. Those of us that are being fiscally responsible probably won’t be hurt much by it. In fact, now is a great time to put money in the stock market. Everything is on sale! Some might make a tidy sum from this strategy.
We also just deposited the check. I agree with a lot of the previous posters. While another chunk of money would be nice, I don’t like the hand-outs either. Not when my son is sitting in a class with 27 other kids and 1 teacher.
Thanks for the post!
Jennifer
I spent mine on a honeymoon abroad.
@ Patrick – I agree with you on all points. When the gov’t decides to give you money you have to wonder where it’s coming from. If we had a budget surplus that would be one thing but we’re in a deficit so the money will go in one pocket and come out of the other.
@ Pete – We’re going to hear a lot of interesting election stuff in the coming months!
@ Kacie – Sounds like you’re being responsible with your money!
@ Hank – Nothing wrong with a landscape! But yeah we need to find better ways to use this money.
@ Frank – If what’s being proposed is more infrastructure then the plan could have value. Really depends on how it’s used.
@ Tiffanie – Ok, you didn’t get the check directly but you didn’t have to pay back your taxes either.
@ JMom – I’m sure the credit card companies appreciate the extra cash. Unfortunately another zero at the end would only make things worse for us I believe.
@ cchiovitti – Paying down your debt is a responsible thing to do!
@ Happy Rock – Putting some money towards education would be a great idea! Wonder how the credit card companies would like that though?
@ Jeff – Stocks do seem on sale now but I’m not qualified to try and time this all out! Wish I was though! I recent;y looked at some house prices and it seems they have gone down so now could be better to buy a home if one was looking to do that already.
@ Jennifer – See, I would much rather see the money put to education or teacher’s salaries. We wouldn’t see the effects immediately but it would pay dividends later on!
@ Anna – Sounds like a nice way to spend the money. Can’t deny a person a nice honeymoon. Though the fact you spent it abroad is a good reason why these checks don’t always work!
Fantastic article, gave it a thumbs up and hop others see it. Stimulus helped many of us but dont think we’ll be seeing another for a long time. I just stumbled this financial advice forum the other day that talks more about this subject. http://www.financial-advice-forum.com
I used mine to pay down my credit card. They could send another, I’d be ok with that, but I think the money should come from Politician’s bloated bank accounts.
@ Booker – That sounds responsible. We need to pay off the debt we have before we go out spending more!
I don’t believe a second stimulus check will do any good for our economy. It is yet another bandaid method that should be avoided.
@ Marsadie – Agreed!
i still think the reaminder of the 700 billion should be put in the bottom instead of through the top hoping it will filter down, I saw an article about the number of first stimulus checks verses the 80 billion the government spent bailing out AIG. It would equate to @ $200,000 per person who recieved the first stimulus checks for the majority of the population I would pay off my mortgage and credit card debt and have money to split b/t spend and save: result no mortgage crisis no credit crisis and boost in investments and spending surge to stimulate the progress away from recession granted this is not how everyone would spend it so not everyone is invested in their own future why should we think they are invested in the future of our country
@ James – As much as individual checks would be I don’t think it solves the problem. We have a fundamental issue here where people think it’s ok to leverage themselves in debt up to their necks. Extra money may be a band aid in the short run but what stops people from getting in debt again. In fact it sets up a precedent where people assume when the economy’s bad the gov’t will step in. The same criticism holds for corporations as well. I think we’re seeing a bit of crying wolf with the automakers. They are doing bad but I get the feeling they are playing it up to get a piece of the bailout pie.
If we’re going to prime the pump then it should be done in a way that increases jobs and builds up infrastructure.
I am in favor of the market/economy correcting itself. Now is the perfect time to start investing in the stock markets.
I used that stimulus check for a new clutch in my honda and to pay off a little debt.
I like the idea of everyone taking matters into their own hands, its just that from the driver seat of my beater, I see that not many understand being fiscally responsible, or even frugal with their spending. That is a whole different subject though.
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