The house passed the $787 billion stimulus package without the support of the Republican party. The stimulus package includes a $400 tax credit for working individuals in 2009 and 2010. For the rest of 2009, workers will pay less out of their paychecks in taxes, and see an extra $13 per week in their checks. In 2010, with a full 12 months to spread out the tax credit, it’s estimated that each check will contain an extra $7.70 per week.

The extra $13 doesn’t seem like anything much to write home about, but it’s all how you use it. You’ll have an extra $52 each month for the rest of the year – and that’s enough to make a difference!

 Pay Off High Interest Debt Faster

 With an extra $52 a month, you can make great gains paying off your high interest debt. The sooner you pay it back the less you’ll pay. When your debts are paid off, you’ll have that much more money each month for saving, investing, and discretionary spending.

Establish an Emergency Fund

Financial experts everywhere talk about the benefits of having an emergency fund. It’s often recommended that you have three to six months of living expenses saved, but for the great majority of people living paycheck to paycheck, it would take three to six years to save that much money! Use the $52 a month from the stimulus package and finally start your emergency fund.

Save for a Little Entertainment

If you’ve been struggling in the tight economy and cutting back all unnecessary expenses, you might consider the extra $52 a month your ticket to some entertainment! It’s money you weren’t counting on, so why not treat yourself to a nice dinner for two every other month, or go out to the movies, or whatever else you’ve been denying yourself.

Start Investing

If you’re not ready to put money into the market, you could invest with FDIC insured deposit accounts. There are a variety of options with fixed interest rates that guarantee you won’t lose your investment.

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Tags: saving accounts, savings, stimulus package

This entry was posted on Saturday, February 14th, 2009 at 9:22 pm and is filed under tips. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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