Yes, Congress and the President want you to spend the money within hours of receiving the check in order to boost the economy. Which might help in the short term but it is not the best use of this money.
So what is the best use of this money?
Pay down your debt
Have you heard about the mortgage crisis? Yes, this is because of out of control debt. The root of the problem lies within the large debt that Americans carry. The reason we are not able to spend extra money is because of high interest rate debt.
Pay off your current debt before tacking on new debt on a $600 shopping spree. If you spent that money, at the end of the day, are you out of debt? All your problems go away after that money? Pay off those high interest loans first!
Put the money in your savings account and let it grow. Boost your emergency funds. The government is borrowing this money and it is only a temporary fix. Putting the money in the banks hands, as with paying down debt, will allow banks to loan more money. This helps out the National problem with debt. It’s ok you can get a 20″ Flat screen TV later.
“Short term solution is to spend your rebate check, wise solution is to save it because it is borrowed money and thus costs you more than you get. Paying down credit card debt (or any debt for that matter) is the equivalent of saving.” – Gabadoo
“If you are going to buy, buy American.”
Mushy wrote a funny post about where the money is going when you buy foreign products. Here is a quote:
If we spend that money at Wal-Mart, all the money will go to China.
If we spend it on gasoline it will go to the Arabs.
If we purchase a computer it will go to India.
How are you going to spend your money?
*Update* – After writing this article I came across another similar article written today, by a Senior Editor for Money magazine. Walter Updegrave writes Make the most of your stimulus check