Okay, I’m going to go against what Congress is asking you to do. Don’t judge my patriotism on this request but I’m asking you NOT to stimulate the economy. Why? Well, hear me out on this one. First, let me be blunt. I don’t care what the “experts” say or what the traditional formula is for determining if we’re in a recession but the majority of the people I speak to say we’re in a recession. These aren’t financial experts but they’re people who have seen their expenses go up and their paychecks stay the same or go down (increased costs for health insurance is taking a bigger bite of paychecks every year). These are people who have seen their hours cut at work because of decreased business. Let the experts say what they will but the every day person who can see that their bills are bigger than their paychecks are smaller don’t care what the experts are saying!

So back to why you shouldn’t necessarily spend that check. Americans have stimulated the economy alot over the past few years but unfortunately, they did it on credit! Have you noticed that the credit card companies have doubled your minimum payments? Many have started bumping up interest rates as well to increase their bottom line (especially since the subprime crash). They’re changing due dates to sneak in late fees AND if you’re late, they bump up you interest rate again! Credit card companies make their money with interest and late fees!!

Americans have saved less and less money BUT spent more and more (thanks to credit cards). It’s not all our fault. Credit card companies have inundated you with an average of 68 credit card offers per year. Advertisers have told you that not only do you want something, you NEED something and you need it NOW! One Superbowl ad showed a couple going out, credit card in hand, because they wanted and needed a new TV. The music screamed in the background about needing it and wanting it NOW, too! I sat there and shook my head. Wanting it NOW and not saving money for it is why so many people are up to their ears in debt! Sooner or later, you have to pay that debt!

Now some of you will say you’ve got credit card debt because you had an emergency and had to use your charge card to pay for the emergency. Well, if you’re comfortable paying off the credit card in a short amount of time, how about using that check to create an emergency fund then. Dave Ramsey, author of “Total Money Makeover” (www.daveramsey.com) would tell you to create a $1000.00 emergency fund, then pay off those credit cards (smallest to largest). This is your chance! Things happen! It’s a fact of life that emergencies happen. NOT planning for them is just plain silly-pull your head out of the sand and face reality! Sounds harsh, I know, but it’s the truth. You know it. Here’s your chance to start making changes that will really add money to your monthly budget. If you’re not spending money for non-mortgage payments, then you could be putting that money into a savings account and paying CASH for those fun things in life. You won’t be held captive to the rules laid down by lenders!

Now, if you have set aside your first emergency fund and still want to spend a bit of money, please think about how you’re going to spend it. Congress is hoping you’ll stimulate OUR economy. Try to focus on services provided by local businesses or goods made in the United States. Think about taking care of the practical things in life. This might be a great time to stock up the pantry (for any lean paychecks down the road). Did the car need new tires? When was the last time the furnace was cleaned (remember, a clean furnace uses less fuel)? Needs versus wants is the attitude to remember.

I hopefully have given you food for thought. I know that personally, we’ll be setting the money aside in our ING account. Our furnace is living on borrowed time and we’ve set most of the cash we need for replacing it aside but this will complete the fund. Yep, it’s an American made furnace and we’ll be using our local contractor to do the work. Just food for thought. ;)