Springboard Offers Tips for Getting More From a Tax Refund
There’s a lot that can be done with a tax refund; the temptation to spend
the money unwisely is ever-present. Springboard Nonprofit Consumer Credit
Management offers tips on what to do to maximize returns on your refund.
Riverside, CA (PRWEV) March 3, 2007 — Springboard, a non-profit consumer
credit management organization, wants consumers to stop for a minute and
think before spending their tax refund.
There is a lot that can be done with a tax refund, the temptation to spend
the money unwisely is ever-present
“There is a lot that can be done with a tax refund, the temptation to spend
the money unwisely is ever-present” said Todd Emerson, CEO of Springboard,
“Instead of putting their money to good use, some consumers will
unfortunately put themselves into further debt by purchasing high ticket
items.”
Understanding how to better manage money is essential for consumers to
achieve long-term financial health. Springboard has compiled some easy tips
on how consumers can put their tax refunds to work. They are:
� Spread your wealth around. Consumers can get their income tax refund
faster with direct deposit. Take advantage of the new IRS Form 8888 and
“spend some and save some”. This form allows consumers to split their refund
and electronically deposit their money in up to three accounts (savings,
checking, and IRA are all eligible). You can deposit however much you like
into each account.
� Repay existing debt. Use this money to pay off high interest credit
cards, or to pay down car loans. The sooner these obligations are taken care
of, the less interest you will pay on the money you borrowed.
� Open or add to your savings account for a rainy day. Nothing in this
world is predictable, we all have unexpected spending that occurs each year,
due to emergencies. It is wise to have an “emergency fund” and a good rule
of thumb is to save enough to cover three to six months of living expenses.
This may seem like a lot, but consumers can start saving a little at a time
and build up their nest egg slowly. A healthy savings account prevents you
from having to borrow money when emergencies happen.
� Invest your money. If you do not have much debt, and have disposable
income, you should consider investing in an IRA, mutual funds, or stocks.
The money you invest can increase over the years, and you can potentially
end up creating a sizeable investment for your future.
Remember, gaining ground on your finances and reducing debt can be far more
satisfying than unplanned purchases that may cause additional debt burdens.
Springboard offers free confidential counseling and education to consumers
nationwide. For more information on their services, or to talk to a
certified consumer credit counselor, call 800-WISE PLAN (800-947-3752).
About Springboard Nonprofit Consumer Credit Management
Springboard is a nonprofit credit education and financial counseling
organization founded in 1974. The agency offers personal financial education
and assistance with money, credit and debt management through confidential
counseling. Springboard is accredited by the Council on Accreditation,
signifying high standards for agency governance, fiscal integrity, counselor
certification and service delivery policies. The agency provides
pre-bankruptcy counseling and debtor education as mandated by the Bankruptcy
reform law. Springboard is a HUD approved housing counseling agency and a
member of the National Foundation for Credit Counseling, a national
organization of nonprofit credit counseling agencies. The agency has several
locations in California and offers face-to-face and nationwide phone
counseling services. For more information on Springboard, call 1-800 WISE
PLAN (1-800-947-3752) ext. 750 or visit their web site at www.credit.org
