There’s No Such Thing As A Free Lunch

Many think that tax rebates they will soon receive thanks to the economic stimulus package recently passed is “free money”. Reality is that unless you made less than $3,000 or suddenly have a change in income between now and next year, that’s likely not the case. As this MSN Money article puts it:

Remember, this is your money you’re getting back, and the rebate checks are basically an advance on your 2009 refund.

I wonder if this misconception of free cash causes more reckless spending.

That said it is possible to make a few dollars if it’s invested well as you’ll collect a nearly a full year’s interest on money the government would have otherwise been collecting interest on. So in reality, the free money is only the interest you “make” on it if you invested it well.