Nothing stimulating about this poll...

There are three things I can do with my tax rebate check:

  1. Spend it.
  2. Save it.
  3. Invest it.

America’s retailer and the U.S. government wants me to spend it. My parents would probably want me to save it. My future children who’d no doubt be spoil brats like me, will want me to invest it. Being the conformist that I am, I will follow my readers’ advice and buy myself a Wii.

CNN’s current unscientific poll shows that 48% of respondents will pay off their debt, 32% will save it, and only about 20% will immediately stimulate the economy by spending it.

With retailers pulling out all the tricks to get you to spend, including allowing you to cash your tax rebate check at their location, a quick reminder on the sensible things to do shouldn’t hurt.

Three Sensible Ways to Utilize Your Tax Rebate Check:

  1. If you have outstanding credit card debt, the sound thing to do will be to pay off whatever amount you can with your tax rebate check.
  2. If you haven’t set up an emergency fund yet, now would be an incredibly good time to do so.
  3. If you don’t have large interest debt and you have the emergency fund covered, the next logical step would be making the money work for you. Invest the $300, $600, $1,200, or whatever amount Uncle Sam will give you. Throw it into your IRA, give a boost to your target retirement fund; heck, if you really want to be crazy, put it towards your children’s college fund.

P.S. Be alert for advance payment scams and other rebate scams. Avoid the hassles and troubles, deal with the IRS only and you should have little issues.

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