What Should I Do With My Tax Refund?

We are well and truly in the middle of tax season and like most others you are probably busy making plans on how to spend your tax refund, no matter how little or liberal a financial bonus it is.

Here are some ideas you might like to consider first though….

Here are some ‘ fun indulgent’ ways to spend your money….

• Splurge a little take your family out for a nice dinner, have a weekend away or buy yourself a new pair of shoes
• Do a home improvement project use that extra cash to take care of some much needed repairs around your house. Enjoy the house you live in and improve its look and functionality.
• Buy an appliance that encourages you to cook great healthy tasty food and eat at home. Bring out that chef in you!
• Go on a holiday it’s been a busy year so far so have a break, even if it’s only a few days, get some rest and refresh yourself for the rest of the year.
• Pamper yourself have a massage or treat yourself to a facial.

Alternatively, here are some ‘smart’ ways to spend your money…

• Pay off your credit card/personal debts as these usually attract higher interest rates and so are more costly it makes sense to pay these off rather than put the money in a savings account
• Reduce your mortgage paying off your home loan sooner means you’ll save interest and save money in the long term
• Contribute extra to super depending on your circumstances, you may be able to make extra tax deductible contributions to your super. This can really boost the amount of money you have to retire on. However, always seek professional advice appropriate to your circumstances!
• Make a donation to your favourite charity or have a little fun and “pay it forward” (where you secretly pay for someone’s bill – like their coffee or petrol)
• Buy work related equipment items bought now for over $300 will get a better tax deduction (depreciation) on next year’s return i.e. computers, tools, electronic tablets, home office furniture.

The choice is yours…..

Disclaimer

This article is of a general nature only. Individuals deciding what to do with their tax refund or savings should consult a financial advisor for specific advice relevant to their own situation.

We are a small business accounting service located on the beautiful Sunshine Coast and would appreciate the opportunity to help you, your friends, family and colleagues. Contact us on 07 5451 1118 for an obligation-free confidential discussion today.