5 ways to use your tax return
5 ways to use your tax return
A wise man named Rob Berger once said,
“The best thing money can buy is financial freedom.”
So, the fact that you are actively seeking out the smartest ways to spend your tax refund goes to show that you value financial freedom and you’re working to achieve it.
For many people, their yearly tax return just seems like free money to simply be spent on materialistic items that make us feel good for a short amount of time, like buying a new TV or expensive clothes.
However, if invested wisely, your tax return can achieve greater things in the long run.
This guide is here to lend you industry knowledge on how to make the most of your tax refund so you can secure the best interest and benefit greatly in the future.
1. Boost your super
A personal contribution to your super is a simple yet effective way to boost your savings.
Depending on your retirement fund goal, making additional contributions can bring forward your retirement plan or provide you with a more lavish budget than you had allocated.
2. Pay off your debts
A surprisingly large number of people hold a lot of debt in Australia.
One of the smartest ways to spend your tax return is to pay off your debts, whether that be credit card debt, personal loans or making payments towards your mortgage.
Paying off your debts might not seem like an exciting tax return purchase, but you can rest assured you’ll thank yourself in the long run.
3. Invest in shares
Shares might seem like a daunting investment for some.
However, they can be a great investment that gains exponential growth.
With over 2,000 companies listed on the ASX, there are endless diversified investment possibilities that will help mitigate the risk of the resilient market.
To ensure the safety of your investment in shares, you should speak to a professional first.
The team at Simmons Livingstone and Associates have years of experience when it comes to investing in shares and are here to help you make the best investments possible.
4. Create a mortgage offset account
Most banks and mortgage providers will offer you the option of a mortgage offset account.
A mortgage offset account is basically a secondary savings account that does not pay any interest. Instead, it deducts the deposited amount from your mortgage loan to then calculate the amount of interest you should be charged on your mortgage payment.
With a mortgage offset account, you’ll end up paying less interest and saving yourself more money in the long run.
5. Open a high-interest savings account
Opening a high-interest savings account is just another smart way to boost the value of your tax return.
Whether you choose to save for something like a holiday, a new car or to set your children up financially, a high-interest savings account is a simple and safe option.
However, choosing the right high-interest savings account can be somewhat time-consuming.
Many savings accounts offer high interest for a short period of time to reel you in before dropping back to a very low or moderate rate.
They can also be riddled with hidden fees.
Your best bet will be contacting a financial professional and asking for advice on the best high-interest savings accounts to suit your needs.
Make your tax return benefit you in the long run
Put that spring back in your step with the satisfaction of financial stability.
Give the team at Simmons Livingstone and Associates a call today, for professional advice on the smartest ways to spend your tax refund.
If you found this article helpful you might also enjoy reading how to get a bigger tax return this year.