How to Stimulate the Economy

It's important for us to continue to save money and pay down our credit card debt, but we also need to start spending in order to stimulate the economy if we're going to end this recession. The government's "Cash for Clunkers" program will certainly help, but we can have an impact on our local economy without buying a car, with a little judicious spending of our own.

First, look around your home for some simple repairs or renovations. You may not be able to afford the kicthen makeover you want, but you can slap on a new coat of paint: cost, maybe 25 dollars. Do you have hinges that need replacing, a door that sticks, tile that needs to be reglued? Head for your local hardware store and spend a few bucks on the materials and supplies to get those repairs done.

Is there something around your house that you can hire someone else to do? Mow the lawn, weed the flower garden, rake leaves? If you have a neighbor with money problems, see if he or she would be interested in picking up an extra ten dollars every couple of weeks to help you out. Even better, hire a neighbor's kid to do it: chances are, some or all of that money will be spent, fast. (A tip: if your goal is to stimulate the economy, pay in cash, rather than a check. The money will likely go into your helper's wallet or pocket and be spent the next time the individual goes to the store.)

Are there tasks you can delegate? For about twice what you'd spend plugging quarters into machines at the local laundromat, you can hire a laundry service to do your laundry for you, and it will come back neatly folded and ready to put away. Laundromats and dry cleaners often have this kind of service. Getting your laundry done on a regular basis will provide more work for a low-wage worker and save you some time; again, the money will go into the hands of someone likely to spend it and stimulate the economy in the process.

 Do you have a small business? You may be able to find a bookkeeper who can help out for a few hours a month, which will free you up to pursue more customers.

Do you have businesses—convenience stores, local grocery stores, coffee shops, etc.—that you used to frequent, but quit to cut back on expenses? Maybe now is the time to start showing up again. You don't have to go back to buying a mocha latte every day, but once or twice a week probably won't kill you, and it will help your storeowners, who are probably hurting now because of the recession.

At the grocery store, can you buy a little extra food to donate to your local food bank? Recipients will benefit from the food, and will be able to spend what little money they have on other necessities.

The trick is to think and act locally, and budget some money each week to support the businesses in your community. Yes, continue to save; yes, continue to work on your debt; but if you have discretionary income and a stable job, you can help stimulate the economy by spreading a little of that cash around.