What Should You Do With Your Economic-Stimulus Tax Rebate?

When something is talked about a lot, I tend to get lots of questions about it. And with economic stimulus tax rebate checks on their way to millions of Americans, I get this a lot:

What do you recommend I do with my tax rebate check?

1. Pay down consumer debt. If you have consumer debt, PAY IT DOWN with your economic stimulus check. The high rates of interest can be devastating. Taking a nice big chunk out of your debt load will be better for your finances in the long run.
2. Save it. Do you need to pad your emergency fund? How is your retirement account looking? Use your tax rebate check to give yourself a little breathing room in your personal finances. Or, if you don't contribute the maximum allowed to your retirement account, boost your retirement savings this year.
3. Pre-pay on your mortgage. If your consumer debt is gone, and you have sufficient savings, consider making an extra mortgage payment. This can reduce your overall payments, and help you build a little more equity. Just make sure that you pay it toward the principal -- and that your lender doesn't charge prepayment penalties.
4. Invest it. Want to take that money and see it go to work for you? Consider investing the money from your economic stimulus tax rebate.
5. Donate it. Finally, you don't have to keep that good fortune to yourself. If there is a cause you are passionate about, consider donating your economic stimulus tax rebate. You can be rewarded in other ways that go beyond mere money.