Check out some tips on how to spend your tax refund wisely.
So you’ve just hit “submit” on your tax return and you’re praying that you see a juicy tax refund staring back at you.
In fact, according to the ATO, 4.5 million refunds have already been issued to Aussie taxpayers since July 1, totalling $12 billion. The average tax refund issued has been $2,639.
No doubt, you’ve already thought of 101 ways you would love to spend that ‘free’ money.
But before you pre-order the new iPhone or book that one way flight to Asia, hear us out.
Receiving a tax refund can feel like winning the lottery but it's actually your money (overpaid taxes) that’s simply being returned to you.
So instead of splurging it all on your wishlist, here are some alternative ways you can use your cashola to help you reach your financial goals sooner.
High-interest debt is a massive budget killer because it grows and grows until you pay it off for good. Think credit card debt and buy now, pay later loans.
Making a lump sum repayment to reduce your high-interest debt (or pay it off altogether) is a huge financial win and can take the stress of repayments off your mind.
If you want more tips on paying off debt, we got you ;) Check out our articles below!
A recent study shows that 43% of Australians have less than $1,000 in savings and would feel financially stressed if an unexpected expense popped up.
Building an emergency fund that can cover 3 to 6 months of expenses will give you peace of mind and prevent you from going into debt to cover emergency costs.
Let’s be real, there’s never a good time for your car to break down, your pet to get sick, or your bathroom to start leaking - but if you have money set aside that can help solve these problems, your future self will be sooo thankful!
Retirement can feel like an eternity away, we know. But that’s why, your tax refund is the perfect opportunity to invest a little bit into your superannuation! Think of it like buying your 60 year old self a cocktail and some snacks. #treatyoself … in the future.
Investing in super is also super important for women who statistically retire with 25% less superannuation than men. If starting a family and having a career break is on the cards for you at all, making extra contributions when you have spare funds available can help bridge that gap.
Saving for a house, a car upgrade, or an adult gap year? Or maybe you’ve been dreaming of starting your own business or getting reskilled for a new career.
The common theme is you need money to reach these incredible goals! So instead of spending your tax return on a short term want, consider your long term wants and how you can get there sooner if you put your tax refund aside for it.
These are the unsexy life purchases you’ve been putting off but would genuinely improve your life. Replacing your broken washing machine, getting your car serviced, buying new reading glasses, upgrading your home security system…
It’s not the most insta-worthy purchase, but it’ll quietly make your life easier and bring value beyond the instant gratification.
So before your tax-refund hits your account, we hope this article gives you a few new ideas on how to get ahead financially. And no, we won’t judge if you spend 10% on a cheeky splurge!
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