How To Use Your Economic Stimulus Check to Boost the Economy

Americans are eagerly awaiting the economic stimulus checks the government will soon be sending out. They have plans for small vacations and weekend getaways, new toys, new gadgets, and little luxuries that they did not anticipate being able to buy this year. The trouble is, this check is supposed to bolster a struggling economy. We are responsible for using these refund checks in a way that ensures they will contribute to our nation's upturn as much as possible. Most of us aren't thinking about that, and government officials know it. The hope here is that, at least on accident, the majority of us will trigger a boost in the economy. If you, however, are concerned with learning how to use this money in the way that it was intended, for your country's financial survival, consider the following spending ideas:

Stimulus Check Idea #1: Purchase government bonds and CD's. That's right, put that money away for a while in an account that you can't touch and let it accrue interest. Why? Because our government is at war, spending millions more each year than we have to spend, and they could use an enormous loan right about now. You see, government issued savings instruments are your way of loaning money to the country (which is why you cannot get your hands on your money for a little while afterward). When the proper amount of time has expired, you will be "owed" your principal balance plus the interest, and the government will have used your money for a larger purpose. It works out for everyone.

Stimulus Check Idea #2: Invest in small businesses. The majority of the nation's citizens are struggling to pay their mortgages right now. To make matters worse, their small businesses are failing and their homes are quickly becoming subject to foreclosure woes. You can help by selecting a small business or two in your area that is struggling and moving some of their inventory off of their shelves. This is especially important for businesses that carry time-sensitive products, such as food and cosmetics. When these items don't go, they can't be stored away for next year. They have expiration dates, and once those dates pass it's a total loss for the company. Help some of our small businesses by removing that burden with a portion of your check.

Stimulus Check Idea #3: Don't be afraid to spend on non-American made products. Many American consumers are concerned because the products they wish to purchase with their refund checks are not American made, even if they are sold here. They are under the impression that if they buy products made in China the money will go to China. They think if they purchase products made in India, India will see an economic boost. While you may in some small way contribute to another nation's economy, the profits will stay here in American business owners' hands. Unless these business men and women invest 100% of their profits back into their inventory, which isn't likely, it will go to their bills, to feeding their families, and to their bank accounts. It will be more than a little difficult to keep 100% of that refund check in the States, but you can use most of it to bolster the economy regardless.

Stimulus Check Idea #4: Invest in the Stock Market. Whoa, that one took your breath away. Invest in a stock market that's headed south fast enough to put investors in a dizzying stupor? That's right. Right now is no time for taking risks unless you have a great deal to lose, but it is a great time to help out struggling blue chips. Companies that have been around for decades and have weathered disturbing times of economic trouble before are a decent bet right now. Begin building a diversified portfolio buy taking advantage of all-time lows in stock prices. When the economy is back on track, you'll see why this was a smart move. Do be careful not to invest all in one company, of course, but get in on the action with a few struggling but successful corporate giants. The money will have an immediate impact on the economy, and it could come back to you in a way that investors haven't dreamed of in years.

Stimulus Check Idea #5: Put it in the bank. No, you don't necessarily have to spend your stimulus check on tangible products. If you would rather save it, put it into a high yield savings account. This will boost the economy as well. You see, banks are struggling right now as well (hence the credit crunch). They need funds to secure their success, and your savings account will help them do just that.

Use your economic stimulus check to bolster your own financial situation or that of those around you, and you'll be contributing to your economy. As an American citizen, your individual success matters. When you have more money to spend, the economy has a healthier future. Spend wisely, and make an impact in your community.