I started seeing my “increase” in my take-home pay two checks ago. I hadn’t made any firm decisions about what to do with it; I hadn’t thought much about it at all. Then I saw this interesting post at Get Rich Slowly the other day.
The idea behind the first economic stimulus, that came in a lump sum last year, was that we would all go out and spend the money, and thereby give the economy a little uphill shove. However, that didn’t happen to the extent that the government had hoped. So, for this round of stimulus, they decided to do it as an increase in take-home pay. Apparently the thinking was, if we only had a small amount of extra money in each paycheck, we’d probably end up spending it rather than saving it all at once.
This has clarified my thinking on this stimulus immensely. First, this stimulus is still temporary. This “raise” that we’ve gotten is going to go away eventually.
And, second, I really hate to be manipulated.
So, I am saving this stimulus too. Every month, I’m going to move the extra money into long-term savings. I may have to use it eventually, but it’ll be on my terms, not on the government’s.