IRS to Send Reminders About Rebates

So many of us will be getting that$1,200 check, against my better judgement of course, but I've compiled a list of things you should do to use that money for good, instead of evil:

Invest it:

I have stock in the following companies, with their stock symbols:

APPLE - AAPL

LEHMAN AGG BOND FUND ISHARES - AGG

STREETTRACKS GOLD TRUST - GLD

OCCIDENTAL PETE CORP - OXY

S&P 500 INDEX SPDR - SPY

UNITED STATES OIL FUND LP UNIT - USO

I have made about 3% in the three days I've owned these stocks.  That's 3% I wouldn't have made had I bought a frivolous item.  Most savings accounts don't even hit the 3% mark for the YEAR.

Granted, there is inherent risk when it comes to playing the stock market.  Do your research, talk to a financial advisor, read up on a company before you invest.

But that money will be going to these companies, who will then invest in new technologies, more jobs, and make me money.  It's win-win all around.

Take the money and invest it.  Use it as a nest egg for your retirement.  It's the easiest thing to do.  You certainly don't want to be 65 and staring down the barrel of retirement with no way of paying for anything.

OR

Pay off debt:

Pay down or pay off credit card debt, car payments, catch up on your mortgage.  Really any kind of debt that you have, pay it off or pay it down.

Ideally, what you'd like to do is what I call the "snowball debt".

What that means is say you have the following debt/payments per month:

Visa - 3,000/50 a month

Mastercard - 5,000/$75 a month

Car - 10,000/300 a month

etc.

Take the $1,200 you get, plus any tax rebates you get and pay off Visa if possible.  What you want to do is pay off one debt, then take that "monthly payment" of $50 and put it towards your Mastercard.  Now, instead of paying $75 a month, you're paying $125 a month, but you're not coming out of pocket any more then normal.  Once Mastercard is paid off, take the Visa and Mastercard payments and put them towards the car.

Now you're paying $425 a month for your car instead of $300.

Of course your situation might be a different matter.  Pay off something that will free up money every month, then "snowball it" into other debt.  You'd be amazed at how quickly you can climb out of the debt you've accumulated.

You don't have to take my word for it, but let me ask you this:  What would you do if you were debt free, except for your mortgage of course?  No credit cards, no student loans, no car payments.  Just free and clear money every month.  It's a nice thought isn't it?

 

Travis

travis@rightwinglunatic.com