Over the weekend, President-Elect Barack Obama revealed his economic stimulus plan. It is expected to cost a great deal, and help improve consumer spending. One of the ways that consumer spending is likely to be increased is through tax cuts. The thought is that if more money is the pockets of Americans, they are more likely to spend it. Even though this might help the economy, it might be a good idea for you to consider doing something else with any money you receive as a result of tax cuts:

  • Pay down credit card debt.
  • Put into a high-yielding savings account, or into a CD.
  • Invest, now that the stock market is relatively low.

The current recession should teach us the value of being prepared and making wise personal finance decisions. While spending money is not always a bad thing, it is important to spend only money that you have. And while the best credit card reward programs can be very beneficial, it is important to realize that you must use credit cards responsibly and wisely.