How to spend, er, save your rebate check
Buying a flat screen TV is a lot more fun than saving your $600 rebate check, but it won't help your solvency. Think twice, be realistic, and consider these tips from the Wall Street Journal before you head to the electronics store.
+Put the rebate towards credit card debt. "A $600 balance on a credit card with an 18% interest rate costs $108 a year" in interest alone. Debt at these rates is not a bargain.
+Start or add to a retirement account or IRA. Max out the limit you can contribute to the retirement plan at your work. Or, if your job does not offer one, start an IRA. "IRA accounts grow tax-deferred, allowing you to earn interest tax-free," the story says.
+Set up a 529 college savings account. The money grows tax free if used for education.
+Create a health savings account. If you are eligible, you can pay for out of pocket medical expenses like co-pays and prescriptions with pretax dollars. There are some limits to how much you can put into the account. Some let you rollover a remaining balance to the next year, others do not.
2 Comments
Leave a comment
About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
My Facebook Profile
Good byline from Ms. Green at the WSJ.
Did anybody read her last suggestion about opening a medical savings account (MSA)?
As the monthly premium of health insurance increases and employers have in many cases no choice but to pass along the increases to their employees, employees are seeing higher deductibles, higher co-pays and higher premiums.
Regardless of who wins the presidential election and claims of Universal health insurance for all, I'm thinking an MSA will offer me the chance to at least reduce some of my medical expense by placing those dollars tax free into an MSA.
I don't think I will save any money with an MSA, rather, the MSA will help mitigate price increases in 2009 and beyond by using tax free dollars to pay for the price increases.
Now, to find the best deal on an MSA, that will take additional research.
Ralphs will be having a deal where they will cash your rebate check if you purchase a $300 Ralphs gift card. The good part is that they will add $30 (10%) to the card. So, the value of the card will be $330 but you only paid $300. They will give up to 4 "$330" gift cards per club card. I believe it starts May 1st and goes through July 31st. This is good if you normally shop at Ralphs and do large shopping there. Not bad. Also, if you have your rebate direct deposited, you just tell the cashier and you can still get the deal.