The “thrift paradox” describes the problem of spending money to stimulate the economy without continuing down the path of consumerism that led us into our current economic state. The phrase was coined by John Maynard Keynes, yet there is a way to both spend and save at the same time…and you can be green about it too!

What is rational for an individual during hard times — saving money — could be ruinous for an entire economy. Eventually, many of the savers may end up out of work because everyone else is saving, too.

As economic problems mount people tend to batten down the spending hatches and prepare for the worst, like unemployment. Yet the less guy A spends and the more he socks away in savings the less guy B or C potentially makes. You see where this leads.

Part of the stimulus package that has blasted through the headlines is supposed to pump money into America’s pockets in part so we will spend it. That’s the hope anyway. What if people save the few hundred or pay off debt? Didn’t our over consumptive nature bring us to our knees?

Well my friends the thrift paradox is not perfect, there are alternatives. The key lies in spending your precious dollar bills where they will count most. Below is a list of purchases you can make now that will save you money in the long run, put money into our economy today, and create a more sustainable existence in one fell swoop.

• Upgrade home insulation, windows, weather sealing, or new roof to lower long term heating/cooling costs
• Invest is personal wind or solar energy generating systems like the Energy Ball
• Look into a home gray water system
• Install a KVAR capacitor in to lower your energy bills
• Start a garden, buy a Food Cone Digester, save on plating soil/fertilizers
• Hire the Green Ghost Busters to leak-proof your house
• Use an indoor planter to grow your herbs year round
• Create your own Solar Heater for under 30$
• Check out a Wattson to study your household energy consumption
• Invest in Green Switches to reduce your Vampire Power

Of course the bottom line is spend responsibly. Some of this items are quite expensive, but eventually they could pay for themselves if used properly.

Sources: Yahoo Finance, Economy Professor