What is the Economic Stimulus Package?

A comment over on freemoneyfinance.com really caught my eye just now. I've been trying to figure out exactly how the Economic Stimulus Package is going to affect me and my family over the next year and especially how its going to affect my taxes.

CF had this to say:

***They're temporarily removing the 10% tax bracket on the first $6,000 in income for single filers (total of $600), and the first $12,000 in income for married filers (total of $1,200)***
To use an example: Assume congress never passed this bill, and suppose you are someone (an individual filer) who would receive a $300 refund next year for your 2008 taxes. What would you rather have?

1. No stimulus package: $300 refund in April 2009
2. Stimulus package figured on your tax return: $900 refund in April 2009
3. Stimulus package as it has been passed: $600 in June of 2008 and $300 in April of 2009

I'm taking #3 every time.

While it may be an "advance" on next year's taxes, it's a prepayment of an excess that they've decided to give. If they had passed nothing, we'd be worse off. I hope this makes sense - sorry if it doesn't, but bottom line, we're better off financially with the stimulus than without.

I think thats the best summary so far of what is in store for us. My thanks to CF for clearing it up.

Three stimple steps to financial security

Kiplinger.com has a great article that shows the three simple steps to starting down the path of financial security.

Three Simple Steps to Financial Security - Kiplinger.com

• Save for a rainy day - There are two ways to buy what you want in life: cash or charge. The very definition of financial security is being able to buy what you want on your own terms.
• Be prepared for an emergency - Even the best-laid financial plans can get derailed by an unexpected cost
• Invest for retirement - Your immediate and short-term needs are easy to focus on. However, it's not so easy for young adults to take this third step seriously.