Economic Stimulus Check? Money to Start a Business in a Recession

Looking for ways to combat the recession? Consider using your economic stimulus check for seed money to start a business. The government's stimulus plan has opened a window of opportunity for new entrepreneurs desiring to start up without BIG bank loans. Did you know that it has never been a better time to start a business than NOW, for anyone seriously considering self-employment. Why? Well, to fully understand the answer to this question, let's take a look at how the American Recovery & Reinvestment Act could impact your family.

Tax Breaks: To combat the current recession, the US government has issued payroll tax credits to the tune of $400 for singles, and $800 for married couples. These tax credits provide working Americans with more cash in their weekly paycheck. Why not invest the extra money to start a business? Low income families also benefit from an increased child tax credit and earned income credit. College students are also reaping the benefits of the economic stimulus payouts, with an expanded tax credit benefit of $2,500 for tuition and related expenses.

Unemployment Benefits: The jobless get a helping hand, with increased weekly benefit checks and a plan for suspending taxation on those same benefits.

First-time Home Buyer Incentives: Uncle Sam is forking out an $8,000 tax credit for home purchases made through December 1st, as an incentive to jolt the slumped housing market.

Auto Sales Tax Deduction: Car buyers get a leg up by having the added advantage of deducting the sales tax paid on any vehicle purchase, from their taxable income.

Energy Efficiency Savings: Weatherizing your home can save you big bucks. These new recession busting measures provide for $4.3 billion in energy efficiency tax credits. Homeowners are entitled to 30% of the cost of home improvements (such as window replacements, doors or upgrades to heating and air systems) that increase energy efficiency, with a cap of $1,500.

So why is it such a good time to start a business without money from bank loans and outside investors? Here are 3 of the biggest signs that the time is right now.

#1: Take Advantage of Increased Take Home Pay

President Obama's economic stimulus plan is putting more money in your pocket. With increased payroll tax breaks, the government is hoping that you will spend more – in order to jump start the economy. Don't do it! The misuse or credit is the root cause of inflation. That's the core problem that has put the nation into an economic slump.

#2: Cut, Spend Less, Save More

Ruthlessly cut your current spending habits by eliminating all unnecessary expenses from your budget. Don't allow the tax breaks to entice you to spend more. Create a financial plan and spend less by consolidating all expenses. Save more by getting rid of any unnecessary expenses, and put the extra cash to work by using the money to start a business - no matter how small the amount.

#3: Bootstrap!

Now that you have more take home pay and a plan for reducing and consolidating your monthly outgoings, you're on the verge of success. The final leg is to investigate bootstrap financing. Learning how to start a business without incurring major debt, can only be achieved with a proven bootstrap financing system. This final step is essential to your long term business success.

The government's current economic stimulus plan has many incentives for budding entrepreneurs. Take advantage of these incentives by putting a plan in place to start your own business. There has never been a better time to benefit from the "gaping hole" left in the marketplace from weakened competition, due to corporate downsizing and cutbacks.

Plan for Your Financial Future

Remember, investing the extra money to start a business is a wise and prudent move in the right direction, to securing your family's financial future. Ready to get started? Discover over a hundred free sources of business start up funding and learn the secrets for bootstrapping your business, even if you have very little money.

Check out the "The Start Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership", by visiting my website.