Many of us are due to receive our tax returns in the coming months.
While some see it as ‘fun money’, with some planning you can use it to your advantage, especially with the rising costs of living, and increases in interest rates on mortgages.
Home Loan or Offset
If you don’t need the money straight away, consider putting it aside in an offset account or in your loan if you have redraw available.
Paying less interest at any stage in your loan life, means paying your loan off faster.
Pay off debt
Whether it’s a credit card, a personal loan, store cards or a mortgage, this is a great chance to make a lump sum payment and clear some of your debt and reduce you interest charges.
Add to your emergency fund
Having access to an emergency fund can reduce financial stress when the unexpected happens
There are different options to keep these funds on hand e.g. a higher interest savings account or term deposit, or even using your loan offset account.
Consider solar
You can save or eliminate your energy bills by switching to solar
So when electricity prices rise, you can have the peace of mind knowing that you are generating your own power.
In some cases you may even get dollars back by supplying additional energy to the grid.
Add to your Superannuation
speak to your financial adviser/ accountant is making after-tax contributions to super is an option for you to consider. Adding to your super, and can boost your superannuation savings.
Everyone’s financial situation is unique, but whether you are due a large or small tax return, if you give it a little forethought you can make sure it’s used in a beneficial way.