> ## Content Index > Fetch the complete content index at: https://www.smdp.com/llms.txt > Use this file to discover other available public pages before exploring further. # Tax refund tips from the streets - URL: https://www.smdp.com/tax-refund-tips-from-the-streets/ - Published: 2007-04-17T15:00:00.000Z - Updated: 2026-10-24T00:35:09.000Z - Author: Guest Author - Tags: local, Santa Monica, #archive-import, Homeless *Locals say returns should be cherished Financial tips from the streets of Santa Monica* *By KRISTIN MAYER Special to the Daily Press* CITYWIDE With today’s tax filing deadline upon us, thousands of Santa Monica residents are hoping Uncle Sam will be fattening their wallets real soon in the form of a refund check. But before cashing out and hitting the mall on a whim, a word of caution, courtesy of those walking the streets of Santa Monica. Locals and visitors alike shared their tips for financial planning in light of the extra cash they hope to find in their mailboxes in the coming weeks. SET ASIDE CASH SAVINGS TO AVOID DEBT “Imagine you don’t have that money, that it’s not yours to spend,” suggested Vinicius Bianchi, a valet at Hotel Carmel who moved from Brazil to the United States two years ago to study English. Bianchi sets aside about $500 each month for the goal of eventually buying a G35 Infinity coup. The valet plans ahead and saves cash to buy big ticket items to avoid using credit and paying interest. It’s nice to have one credit card, not five, he said. “People use credit cards as if it’s their own money,” Bianchi said. “They pay huge interest rates on it. When you have too many credit options you get too much debt. It can put you in a bad position in the future if you don’t realize how much you have to spend.” Unfortunately, many people are too lazy to take that extra time and research a cheap-er alternative. “Setting aside money will give you time to think about what you really need,” Bianchi said. PLAN FOR RETIREMENT If somebody has extra money coming from a tax return, one choice they might want to consider is to invest it in their future, said Paul Heising, who teaches a continuing education course on financial strategies for retirement at Santa Monica College. “Probably the best recommendation would be for people to invest money from a tax return or savings in an individual retirement account — an IRA,” Heising said. “Depending on their income levels, they get a savings off of their taxes by investing in that.” When a person invests money in an IRA, it grows tax deferred, meaning the individual won’t pay taxes on the money until they withdrawal it. “The important thing is to put money away each month,”Heising said.“One rule of thumb is 10 percent of your gross income or more per year.” Individuals age 50 and below can invest up to $4,000 per year in an IRA, according to Heising. Those over 50 can invest up to $5,000 per year. AVOID IMPULSE BUYING Katalin Fischl, a Pacific Palisades resident who was buying presents at Santa Monica Place last week, offered advice for those who spend money just for the fun of it. “Look into your closet, and if you need something, go and get it,” Fischl said. “But just throwing out money — what’s the point?” Fischl said younger people are more focused on material items and inclined to buy items they don’t need. “Younger people go out more often,” Fischl said, mentioning her two daughters and three granddaughters. But the urge to pounce on a good deal is enticing at any age. “Temptation is everywhere. Everybody’s trying to make you spend your money,” Bianchi said. “Most people just fall into those traps. If you’re buying something you don’t need it’s not a savings because you’re still spending money.” Taking a moment to identify priorities will help you avoid overspending on unnecessary items. “First, I just try to pay my bills — school and home,” Bianchi said. “If there’s any left over, you can spend the money. But you have to save.” LIST FINANCIAL GOALS To draft a successful budget, divide expenses into luxuries and necessities, suggested Jason Mu, a Pennsylvania resident in Santa Monica visiting his mother. “Make a game plan and stick with it,” Mu said. “Draft something up that’s reasonable. This is where we’d like to be in the short or long term.” “Sit down and write a list of attainable goals,” said his wife, Kate Mu, as she munched on a calzone at the Santa Monica Place food court. “You can have big plans, and sometimes it’s not easy to stick to those plans.” Mu family goals include buying a home within the next year, regularly depositing money into a college account for their 19-month-old son Tyler, and setting aside $100 per month for extra savings. “Put it somewhere you can see it as a daily reminder,” Jason Mu said of the list. Common financial goals list locations include the fridge, back of the front door, in the bathroom or on a desk. “It helps to have something tangible. This is what we want to do, and this is how we get there,” Kate Mu said. “I think everybody has their list. They might not write it down. For us,writing it down helps it become more real.” KNOW YOUR SPENDING LIMIT Keeping track of a budget while abroad is difficult for Gabor Bathory, a 17-year-old foreign exchange student from Budapest, Hungary. “I like to keep a monthly budget,” Bathory said. “When I first came here I was very proper and wrote everything down. Now it’s a mess.” Bathory said that knowing his spending limit helps him live within his means. “You can avoid having to borrow money or having to call your parents to have them send money,” Bathory said. By knowing when the money is low, Bathory can plan accordingly and choose social and educational outings that don’t strain his pocketbook. USE CASH, NOT BAR TABS Ian Kelly, an Australian man visiting Santa Monica for his sister’s wedding, said Los Angeles nightlife eats a hole in his wallet. “Stay away from the clubs,” Kelly said. “The alcohol makes you forget that you’re spending up big. It clouds your judgment until the end of the night when you find out you’re broke.” Kelly said a better alternative is to go out with a certain amount of cash, leaving the ATM and credit cards at home. “In Australia we don’t do a lot of bar tabs,” Kelly said. “You can manage your money a lot easier that way. You can actually see your money stack up.” Kelly said clubs become especially expensive when he goes out with friends who expect him to buy entire rounds of drinks. “I snuck out and went to another club,” Kelly said about a recent night on the town. “The guys were costing me too much.” PREVENT UNNECESSARY BILLS John Cunningham, a homeless man better known as “The Teddybear,” still has a headache from an ex-wife who racked up a $5,000 phone bill. “After I paid my bill I said no more phone,” Cunningham said, continuing on about how she owes him money. “I canceled my plan.” Cunningham, who frequents a bench along Ocean Avenue, suggested carrying a phone card instead to cut out the hassle of bills. “It’s nice to have a cell phone, but don’t overdo it. Use it for emergencies or for your job,” Cunningham said. ■List financial goals and post on fridge ■Look in closet before shopping ■Cut up all but one credit card ■Hit the bars with only a set amount of cash ■Draft a reasonable monthly budget ■Set aside cash savings each month ■Plan ahead for big purchases to avoid interest ■Don’t let your phone bill surprise you ■Invest in an individual retirement account (IRA) *Originally published in the Santa Monica Daily Press print edition on April 17, 2007.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/041707.pdf?ref=smdp.com)