Is Your Income Stream Overflowing its Banks

After a heavy rain or a spring thaw, run off water will flow into stream and rivers and cause them to raise their level and overflow their banks. In some cases after the influx of water the level of the river or stream will go down lower than it was before.

The same thing can happen to your income stream. From time to time we receive an influx of money, promotion, inheritance, lottery winning, successful sales campaign, or in the current case and economic stimulus check.

We need to have a plan on what to do with this additional income, or like the overflowing river, it will be absorbed somewhere, and we will scratch our head and wonder what happened to it. Or worse we overspend because of the influx of money and end up having more monthly expenses because of it.

So what are you going to do with your check from the government? Blow it on a new TV, take a vacation, let it sit in your checking account and get slowly absorbed? Or are you going to pay down debt, buy a CD (certificate of Deposit, not the latest Kelly Clarkson CD), invest in your business or maybe make a contribution to your favorite charity.

If you do not pro-actively plan for the times when you will receive extra income, in the excitement of the moment you might do dumb things.

PS. Oh just by the way, this economic stimulus check you are receiving is actually an advance on your next years tax return. So if you are the type that uses your income tax return for a vacation or for purchasing big ticket items, remember next year the amount will be reduced by the check you are getting now.