Where Will Your Tax Rebate Go?

"The money is going to help Americans offset the high prices we're seeing at the gas pump, the grocery store, and also give our economy a boost to help us pull out of this economic slowdown," President Bush has said.

There has been a 4% increase in consumer prices in the past year. That is the biggest increase in 17 years! The tax rebate is supposed to be used to stimulate the economy in hopes that consumers will purchase more. The question is: How far will your tax rebate go?

With the overwhelming increase in gas, groceries, and travel, your tax rebate seems to only offset the higher prices, which does not make it seem like free money anymore. For example, how much did you spend per month on gas two years ago compared to now? What about for groceries? The dollar difference could eventually lead to what you get back in your tax rebate. In addition, eventually we will be taxed on this money next year which goes directly back to the government.

There is a potential lesson here. When you decide what to do with your tax rebate, consider investing it.

So, tell me, what do you plan on doing with your tax rebate??

Difficult to keep up with the Joneses...

The Joneses...an interesting topic to consider and delve into when time permits. Your neighbors purchase a new car and the question comes to mind, "Is my car up to date? I did hear some noise under the hood yesterday". Your neighbors express how much of a fun time they had on a recent cruise they experienced, once again questions which put the focus on their joy and our lack of. These situations are not rare, if anything we rather not admit to ourselves how selfish we are. Since the 90's consumers have been overly selfish and lost the ability to control their urges for consumption or, in these cases, for keeping up with the Joneses. As you can see depicted in the image from the Federal Reserve Board, the ability consumers have had to access credit has lead to an over extension to the concept of living within your means. Due to our current state of economy consumers are seeing that financing their cars, houses, and expenses will be more difficult as time progresses, requiring consumers to consider saving for purchases instead of paying with credit. Please share thoughts on this topic and tools that may have helped you in avoiding the debt amidst a society which cannot say NO to wants.

money...goes faster than it comes...

I am paid on the 1st and the 15th...bills are mailed out on the 10th and the 20th. Fortunately for me I have been able to make my cash flow steady; however, recently I have been noticing the amount I keep declining. I look at the hours I worked and their the same, I look at the fridge and it looks empty, I look at my closet and nothing new....what going on? Inflation. I can't buy anything anymore without taking a step back and confirming I am not buying on impulse...I HATE IT! Well throughout this blog we will be sharing our thoughts on what it is that we speculate is experiencing inflation and possibly together we can gain an advantage by sharing ideas of how to get around the invisible thieves.