Financial Abundance Guide

Congress recently approved the “economic stimulus package,” which will provide every single tax filer with adjusted gross income (AGI) of $75,000 or less with $600 and every joint filer with AGI under $150,000 with $1,200.  If you have dependent children, you get an additional $300 for each dependent child.

 The reason for this program is to get us to spend the funds to help “revive” the US economy.  From my perspective, the long term results of this program will not revive the economy, but will serve to put our country deeper in debt.

 As one pundit has stated, this should be called the China economic stimulus package.  Much of the $150 Billion of additional long term debt that this “stimulus” provides will likely be purchased by the Chinese or other foreign entities.  Thus, additional government resources (which come from you and me) will be required to service this debt.

 As an added benefit to China, if the money received is spent at WalMart, Target or other large retailer, it will be used to purchase goods that are manufactured in China, increasing our trade deficit.  Some “economic stimulus” this program turns out to be.

 OK- so our elected officials are scamming us in order to “buy” more votes – what else is new?  However, we can take this lemon and make it more palatable. 

 Here is what you might consider doing.  If you have any credit card debt, use the funds that you will receive to pay it off.  If you already pay off your credit card in full each month, take the money and use it to pay down some of your mortgage or put it in one of your savings accounts.  In 20 years, the $1,200 will be worth over $6,000, if your investments return 8% annually.

 We can never keep our elected officials from doing things harmful to our economy, but we can minimize the damage that they do.  I hope you will use this “stimulus” to increase your financial abundance.