Five ways to spend your tax return wisely
It’s nice to receive a handy bonus after getting through the end of the financial year. If you were lucky enough to receive a tax refund this year, we’ve got a few ideas about how you might like to spend it!
Modern appliances can sometimes use less energy than older appliances. Increasing your household energy efficiency is a great way to improve your outgoing costs. So if you have some old appliances that could do with a more efficient replacement, your tax return might be the perfect source. As an added bonus, you’d be doing your bit for the environment!
An emergency buffer
Setting aside money to create an emergency buffer (in case anything unexpected should happen) is important. However, it can be hard to set aside money when expenses come in week by week. Receiving bonus money from the tax man could be a good way to kick off those kinds of savings!
Top up your super
The earlier you start contributing to super, the longer your money has the opportunity to grow. And if you struggle to make room for super contributions in your monthly budget, some extra money at tax time might be the perfect solution.
It’s tough finding room in the budget for those bigger purchases, no matter how essential they seem. Maybe you’re in need of a new winter coat, or some protective work shoes, or even a dentist appointment. These might not be at the top of your priority list, but if you’re surprised by a reasonable tax refund, it could help you cover them!
Pay off debt
Sometimes costs crop up throughout the year that you can’t put off. And if you have found yourself in a tight spot, a credit card might seem like a good way to cover it, so you don’t have to go without. Of course, a credit card debt can become a financial burden if it’s left to grow too long. Perhaps your tax return might be a good way to start clearing it.
It is of course important to save and spend your money sensibly, but if you’ve saved all year and you’re not in particular need for anything, a treat might be just the thing. It’s OK to spend on yourself every now and again – especially with money you didn’t necessarily expect.