Frugal & the Economic Stimulus Checks

Waiting. Waiting. Waiting. Soon, that check will arrive. $600 or $1200 or ??? depending on how many munchkins bring joy and expense your way.

Like the tax refund, here comes another cash windfall, an even better one since you didn’t expect it. But, and don’t be fooled by Uncle Sam, it comes with that psychological trigger many can’t name but most fall prey to. It’s a theory called “reciprocity.”

Reciprocity is the glue of Internet Marketing. Give me your email address and I’ll give you something free. So, we do, because, well, we’re frugal which means free is tough to ignore, and then the emails arrive: monthly, daily, weekly, always giving us more free stuff, until, finally, guilt overwhelms us and we BUY. After all, I mean, look at all the value we didn’t pay for…

So, where’s reciprocity in these checks? Start with the name. Economic Stimulus. The government is tapping into your patriotism, subtly making YOU responsible for the economy’s health. It’s up to YOU to stimulate the economy because we gave you something “free.” (Yeah, like that won’t just be tacked onto the national debt…)

If you’re like me, truthfully, you love the good ol’ USA, but the economy that most interests you is your own! God helps those and all that. So, before that check arrives, steel yourself, and budget that money for the long haul. (after all, you’ll be paying it back at least that long.)

To help, here are my tips for using that economic stimulus check to stimulate YOUR economy. 

1) Pay off any of those no interest for 12, 18, 24 months accounts you might have. I just checked one of mine and guess what? If I miss the due date, they want almost $500. It’s definitely getting my stimulus check!

2) Grocery’s – Fry’s in Phoenix (Krogers in other places) is offering 10% off if you buy gift cards in $300, $600, or $1200 increments. If this deal is offered in your area, think about it. Chances are, you don’t normally have $300 or $600 to invest in future purchases. But, now you do. You’ll be buying groceries no matter what happens so why not save 10% immediately?

3) Christmas Club – When I was a kid (you know, like awhile ago) my parents had a Christmas Club account. They put aside $5 or $10 a week to pay for Christmas. Banks no longer offer that kind of account, but put the money away now and you won’t be making credit card payments next year.

Notice I didn’t say pay off a credit card? Why? Most of us pay it off only to charge it up again. If you SWEAR to pay it off and not charge it up again, pay if off. Otherwise, it’ll fritter away and you won’t know where you spent it.

4) Send a chuck of change to your gas card, you know, like carry a credit balance on the account. Why? You have to buy that liquid gold, which only seems inclined to increase in price. If you prepay, you have gas at your disposal and you won’t spend the $ anywhere else.

Note: I said GAS card, not credit card. See #3 above.

5) Take care of medical stuff: annual visits, teeth cleanings, etc. – you know, the items you want to do regularly but the budget never seems to have enough flex in to allow.

6) Do maintenance. Buy those energy efficient light bulbs. Have the refrigeration unit cleaned. Do auto tuneups. Did you know spark plugs have coils that you’re supposed to replace every 30,000 miles? Me neither. But, a small investment in your vehicle will help extend that credit balance you have on the gas card. Any project that will make your life more energy efficient will also make your stimulus check keep on paying long after it’s gone.

7) Make an extra house payment, rent payment, car payment, pay car insurance for six months or a year. (Which doesn’t mean you skip the payment next month and take a trip to Cancun.) The key is to ‘pay it forward’ so you have some breathing room if you need it.

 

And, finally, splurge!

WHAT? All these rational ideas and now I say “Splurge.” Yes, do something (preferably small) that will allow you to fulfill your patriotic urges and help ol’ Uncle Sam out. Actually, it’s not for him – it’s for you. Living frugal can be overwhelming day in and day out. It can be exhausting and frustrating and down right depressing at times to always be watching pennies when everyone else seems to be flush in dollars. Take the kids to the waterpark or bbq T-bones instead of chuck steak. Whatever you do, reward yourself for your sound wisdom and restraint when that check arrives.

 Have more ideas? Let us know, and remember,

A Frugal Fiction children’s book: $3.99. Reading to your child fifteen minutes a day? Priceless!!