Your tax rebate is arriving in May! Some states are planning to allow tax free purchases around the Memorial Day weekend. They are attempting to stimulate consumer spending. I predict they will be highly successful. Retail businesses will be thrilled. It will boost the economy.
However, the best kept secret about your rebate may be that you would be better off if you use it to pay down debt or invest in your retirement. Do you really need that flat screen tv? $1000 invested at 8% over 27 years with no additional deposits will accumulate to $8,000. If the return is 12%, it would be worth $16,000 in just 24 years. Many mutual fund investments have averaged 10% over the last 10 years, and some over 12%.
So, what is best for your future; a tv to watch the superbowl, or cash in your future to jump up and down on? I suggest you invest the money and go to your friend's house to watch the game, knowing that your money is accumulating for you and your children. A wise choice limits your spending to a bag of chips or a snack plate, and a good time will be had by all!
2 comments:
This is SO funny...how did you know the men folk around here walk across the street to see the big game! Get a snackie to share and your good to go. Those monster TV's scramble people's brains...I'm sure of it!
I'm thinking we'll go with the Pay down the debt part and keep buying potato chips.
Hi Carol
I actually don't have anything against purchasing a flat screen tv. After all, in a few years we will all have one. It is important, however, to pay off debt first. Glad you agree.
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