Spend a tax rebate? Not this blogger
Posted
Jan 23 2008, 10:08 PM
by
Karen Datko
Since when is it patriotic to spend, wonders our partner blogger J.D. Roth at Get Rich Slowly. If J.D. gets a tax rebate as a result of the proposed economic-stimulus package, he doesn't plan to spend it. "Despite what some politicians and pundits say, I don't believe there's anything patriotic about spending. The notion baffles me," he writes. "The two concepts -- patriotism and spending -- seem completely unrelated."
J.D. did his best to avoid writing about recent economic news. His blog is about personal finance and saving money, not politics or the economy. But his readers -- and his wife, Kris -- insisted. In a new post today, J.D. also tackles the stock market and the Federal Reserve's surprising interest rate cut.
Focus on the long term when it comes to the stock market, J.D. says. The market has always recovered. As for the dramatic drop in the Fed's discount rate to 3.5%, he is skeptical about the benefits and worries about inflation. For him, the cut means that his savings will earn less money. However, people who carry a balance on their credit cards will be happy to see those interest rates drop.
Finally, J.D. writes, ignore the "hysterics" of the media. "They fan the flames of fear. If you're living within your means, avoiding common financial traps, and exercising sensible habits, you'll be fine," he says.
