What To Do?

Free Money Finance takes a look at some suggestions on what to do with the looming extra tax break working its way through the Federal Tax system. The suggestions come from MSNBC.Here they are:

Start that emergency fund, pronto.

I am very okay with this item with setting this at priority level #2.

Wrestle your bills to the ground.

I would probably make this priority #3.

Pay down credit-card debt.

I would probably make this priority #1

I don’t think the above three items are what those in Washington D.C. have in mind we do with our money. I think the idea is for us to spend it on things

Invest in the future.

Invest in your potential.

Don’t let your house sink you.

By this one they are talking about paying off any money you owe on home equity loans or applying the tax relief to pay against your mortgage. I think it is a good idea to pay off the home equity debt but at most I would use this tax windfall to start a regular increased payment. Remember, for most of us the minimum mortgage payment is just that a minimum.

Give your ride a little TLC.

How are your car’s tires doing? Do you have any other auto maintenance to be done? Careful here, safety first and then if a repair is not for safety or to keep the car running then I would suggest sending the windfall to the car.

If you’re going to buy something, make it worthwhile.

Since we are moving into a new and bigger house we are going to need furniture, there is a couch we saw (on sale at a going out of business sale) that would suit our new living room nicely. Hate to do this, but beer case furniture is not going to cut it in the new house (not that it does in our current place). I guess this means it is a little higher on our priority list.

Do your part to combat poverty.

I have other ideas on helping the poor that do not involve you giving up cash, but more about that later.

Recharge your batteries.

Are your batteries REALLY in need of recharging? We Americans are known for being hard workers but I have seen other people who scratch a lot harder and for less than we do and do not need constant battery recharging.