What Happened to Your First Stimulus Check

by David Ning · 15 comments

Even though the second stimulus check proposal was voted down a while ago, there are talks again surrounding the need for another one. Personally, I never really thought it was a great idea, as I share the view that we should really be spending money our social programs which are badly imbalanced at the moment.

This also reminds me though of our first stimulus check and I want to ask you this:

[poll id="20"]

Judging from the people that I spoke with about the check during the past few months, many people actually used the money to buy something which was exactly what the government wanted us to do.  However, I suspect that the poll results above will be a little different since we are a bit more financially savvy.  If anything, at least we won’t believe that it was “free” money from the government as we will be paying it back in later years somehow.

What Do You Think of This?

Another reason why I wrote this post was because of a couple thoughts that suddenly dawned on me about this subject.  Let me know what you think.

  1. If we saved all of the money that the stimulus check gave us and pay it back to the government through tax hikes, aren’t we ahead because we get free interests? I figured that it will be even more beneficial for those that paid down their credit card debt since the interests are much higher there.
  2. Whether the government approves stimulus checks or not, it probably doesn’t have much affect of plans for the social programs. Even if many of us want the government to fix our social securities imbalance, the government’s decision is probably not going to be based on whether we are $0, $150 or $300 billion more in debt because of the stimulus checks.  Sure they will use deficit and what not for excuses, but I doubt that’s the real reason why no one has ever tackled the problems of the social programs.

Although those thoughts popped up in my head, I still vote for no stimulus checks but what do you think?

Money Saving Tip: An incredibly effective way to save more is to reduce your monthly Internet and TV costs. Click here for the current AT&T DSL and U-VERSE promotion codes and promos and see if you can save more money every month from now on.

Related Posts

{ 15 comments… read them below or add one }

FFB October 17, 2008 at 9:36 am

We put our stimulus check into ING (actually it was direct deposited there) and left it. We don’t need more “stuff” in the house. We’re better off earning interest.

I didn’t agree with the first check and I don’t think we need a second. As we can see the economy’s problems were more rooted in investment firms than with consumer spending.

Reply

Clever Dude October 17, 2008 at 9:50 am

You need to add “Donated it to charity” since we gave away our $1200.

Reply

MoneyNing October 17, 2008 at 10:03 am

Clever Dude: Done :)

Reply

David October 17, 2008 at 10:14 am

We blew it on hookers and coke. Is that bad? ;-)

Thanks for the link, MN…

Reply

MoneyNing October 17, 2008 at 10:20 am

David: Yes it’s bad. Hopefully that’s Coke (the stock, symbol KO) and not the actual drinks :)

Weren’t you the one that said you quit? Or was that Clever Dude? I get mixed up.

Reply

Clever Dude October 17, 2008 at 10:49 am

No, I drink Jolt now. Grape Jolt is awesome, but I can only find it in Sheetz. I only have rasberry, regular and sugar-free where I am. It’s 3 servings per can and it makes a loud noise when you open it and steam comes out from all the fizzy stuff and it gets me very excitable

Reply

David October 17, 2008 at 12:51 pm

LOL

I did quit all sodas with HFCS in them. Feel much better now. :-)

Reply

FamilyMan October 18, 2008 at 5:38 am

Paid my daughter’s fall tuition at the community college. Not sure which of your categories it would touch–prevented a debt, paid a bill, invested in the future.

Reply

Jewelsmom February 3, 2011 at 7:04 pm

We used it toward replacement of our old windows and doors in our 1970s home. With temperatures this week below zero (in New Mexico.) we are so very glad we did.

Reply

Cheryl October 18, 2008 at 3:51 pm

Our original plan for the stimulus cheque (after tithing) was to stick in our online savings account and let it accrue interest until December of this year. We would then withdraw the original amount, and put it as a payment directly on the principal of one of my two student loans back in Canada. With the exchange rate being as it is now, we would have wiped out the smaller of the two loans. But as life would have it, my husband was laid off just before the stimulus cheque and our income tax return came in the mail, so they ended up keeping us afloat until he got another job. But hey, we didn’t go into debt during that time, so it worked out.

Reply

CD Rates October 20, 2008 at 10:42 am

I wasn’t in favor the first. Won’t be in favor of the second. We used it to pay down debt.

As to whether you’ll be ahead putting into a savings account if they raise taxes, that depends on how much they raise them and for how long. Personally, Gov’t needs to shrink way down and reduce the social progam spending among other things.

And your last statement is really what is scary. They are adding debt after debt after debt with no current end in sight, and have no plans to reduce spending in other areas. Somebody is going to get a big tax bill. I don’t want it to be me.

As for engery drinks, the BFC Monster (32 oz) was fun to buy once. Costco sells Engery Fizz powders. They cost a lot less than other energy drinks. I have to be honest, sometimes I just buy the cans because they look cool.

Reply

philip October 20, 2008 at 2:13 pm

I took mine and went to Kroger and bought $600 +$60 free gift cards. I am still using those for my groceries (single guy that eats very minimally). I voted paid off debts because I am paying back a loan to my dad and was able to pay him more while not spending it on groceries.

I still disagree with what they are doing, and hope they vote against another one. It will be our debt some day some how.

Reply

Donny Gamble October 20, 2008 at 7:32 pm

If people don’t have trust or faith in anything that you do, you really don’t have any kind of relationship. These two key factors are the basis of starting a good relationship rather it be for business or social.

Reply

Matt @ MyFinancialRecovery.net October 22, 2008 at 11:16 am

I actually put mine in the bank and used it when I moved from Colorado back to Vermont. It was handy getting the trailer rental and a good portion of the gas paid for by the government.

Reply

Girlthree February 21, 2009 at 6:05 pm

We spent ours on a flat screen T V . I figure if the government gives you something then you need to have something to show for it and spending was the purpose of this money

Reply

Leave a Comment