Sharing Daily Discoveries About Personal Finance And Business Topics

Save It or Spend It

Here in Canada today there was a big announcement about the country’s financial situation as well as the government’s economic plan to get things going in the economy. Without going through all the details, essentially the government is planning to go into an $87 billion debt buy spending that money on various things such as giving tax credits. So the key question is will people actually spend the money or will they simply save it?

Now there were some interesting details in the plan such as business owners who will get credit to purchase one new computer system for the year. Overall, I am more inclined to just save the funds if I do end up getting money through these initiatives. I kind of categorize these as trickle funds where it doesn’t really change your overall situation and so it doesn’t make sense for you to go out of your way to use it up.

I think of it like a line that gives you fresh water. If my lifestyle revolved around how much water I get every year from this, getting an extra drip of rain each day isn’t enough to change me to the point where I could say use the water to make a swimming pool now as oppose to using it as drinking/cooking water. I would need say another water line before considering that.

I personally don’t see how this stimulus plans can help the average person overall as even I am inclined to say that the majority of people who would spend them are ones that aren’t in a financial predicament. Like with personal financial management too, the key thing is changing the way we do things I’d say as oppose to just catering to people’s immediate wants.

Thinking for myself, if I was in a rut I would think that an opportunity and direction would do a lot more than getting a small amount of cash injection. Example, tell me who I can talk to help me get off my feet, the different types of paths I could take to adapt to the situation, etc. It’s more effective to focus on things like that if I was looking for outside assistants.

As usual though, you should always try to find your own ways to generate more revenue if you need it rather than relying on others to give you it. If you do intend to spend too, try to find ways to use it to generate more funds as oppose to just using it for recreational purposes.

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