photo credit: pfala

News that most taxpayers would be receiving a check from the IRS has been pretty welcome news in households across the U.S. The hope of U.S. officials is that this rebate check will lessen some of the strain families are feeling in their pocketbooks and help them relax about their financial situations. However, rushing out to spend your economic stimulus check may not be the most financially savvy way for you to put your rebate to use. A close inspection of your financial circumstances might reveal several ways to use your check.

One viable option for your rebate might be simply to save it. Maybe your emergency fund is already scarily low and needs to be replenished. Perhaps you’ve heard rumblings of potential lay-offs at work and fear that you may need those funds in the near future. Although consumers are encouraged to spend their rebate check as quickly as they receive it, you should feel comfortable with the idea of saving your rebate if you financial situation warrants it.

Households that are already mired in consumer debt may find that paying down their debt is the best use of economic stimulus check. If you already have outstanding balances on store accounts or Visa/MasterCard, applying your rebate to those account balances may give you some breathing room in your financial plan. Perhaps if you’re able to use your rebate to catch up on payments to those debtors, you’ll be able to start planning for your financial future again.

Finally, a large, but planned, purchase is always a good use for your rebate. Some consumers may find that their rebate allows them to complete their savings plan for an upcoming purchase. Have you been scrimping and saving for a new refrigerator? Your rebate may allow you to finally make that purchase. Or perhaps your car needs new tires. If you’ve been putting off buying those tires until you could pay for them with cash, the economic stimulus package may speed that day’s arrival.

When deciding what you and your family should do with your rebate, the most important thing is to figure out how this money works into your existing financial plan. If making a large purchase or taking a vacation was already in your plans, by all means, you should use your rebate to step closer to that goal. However, if your current financial goal involves savings, you should use your rebate to further your advancement towards that goal. Just consider your economic stimulus package as a jump-start to your financial plan, and you’ll find the perfect way to use your rebate.

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