What to do with that stimulus check
By Michelle at 2 May, 2008, 6:53 pm
(photos.com)
The government started sending out stimulus checks this week. If you’re a tax-paying American, making less than around $80k (depending on how many dependents you have), and if you’ve filed your taxes, you will probably get one of these checks — but you should still check with the IRS to see if you will. Instead of using the $600 for a Hummer down payment like the government wants you to do, consider boosting your financial status (or someone else’s):
1. Pay off your debt.
There are many kinds of debt that you likely have — credit card, student loans, your Macy’s card… If you’re going to use your money to knock off a chunk of debt, you should probably go with the most pressing line of credit that you have like a high-interest credit card. If you don’t have a ton of debt, well then, good for you for being an anomaly.
2. Donate it.
There are tons of people and organizations that could use your help, locally, nationally, or internationally. You can donate it to your alma mater, place of worship, nearby youth group, etc. Non-profits likely need help to simply stay afloat, especially since people just don’t have extra money to donate. Also, keep documentation of your donation so you can write it off your taxes next year.
A few charities I suggest: Kiva, RoomtoRead, UNICEF, Oxfam, the Red Cross, Doctors Without Borders, your local public radio or television station (like NPR or PBS), your favorite museum (pretend you have one), Alvin Ailey Dance Foundation, American Ballet Theater, The Actors Fund of America, The Young Women’s Leadership Foundation and way, way more. There’s really a ton of different places to hand out your tax-deductible dollars. Charity Navigator has a few ways to figure out which charity would be best for you.
3. Invest it.
You can throw it in a CD, Money Market Account, your 401k/ 403b (depending on where you work), or a (Roth) IRA… or visit your local state lottery retailer and pick up a mega Slushee while you’re at it.
4. Save it.
Obviously. You never know when the pink slip is coming your way or you need emergency tooth repairs.
5. Be a renegade.
Maybe you’re completely against this government stimulus… then stick it to the man!!! You could probably send it back, or ceremoniously burn it. If you requested a direct deposit with your tax return, they’ll deposit your stimulus money into your checking account, so you can’t really burn that.. Nonetheless, just don’t come crawling to us if you do something that makes the government come after you.
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