7 ways to use your tax refund

Writen by: on June 26, 2012



With only four days to the end of financial year I am sure your attention will be drawn to the impending lodgement of your income tax return. Receiving a tax refund can be a great bonus to your household. Have you thought about what to do with this money? Here are some of ideas….

* Save some  – having an emergency fund tucked away in a separate bank account will help for those unexpected events that happen in life. It can also give you great peace of mind.

* Pay down debts –  Paying down bad debt, such as credit cards can help with your household budget and save you plenty of dollars.

* Pay for a holiday – Prepay for a well deserved holiday

* Home renovations – Fix those leaky taps or repaint your bedroom. Making small improvements to  your home can help to increase the value of the home, making your refund work harder for you.

Write your Will – Taking the time and spending the money to do a will is not always a priority and yet it is very important.

Investment – Use your tax refund to start off an investment plan. You can add small amounts on a monthly basis after the initial start and then add some money from your tax refund each year. Watch your money work for you.

* Give to charity – This is my favourite tip. There is nothing better than the feeling of giving.  If you are looking for a great cause – head to your fundraising page for “Erica’s Brave Hearts” every dollar adds up.  Go to http://www.fundraise.city2surf.com.au/ericas_brave_hearts

Depending on the size of your refund you can spread your refund over a few of my tips. Whatever you decide to do, make the most of it.

Remember individual tax returns are due to be lodged by the 31st October of each year.

 

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Written by

A qualified tax accountant and business specialist, Barbara brings a unique skill set to her clients as a finance broker. Barbara’s desire to work with people and help them achieve their goals is what initially led her to the finance industry over eight years ago. She has a genuine desire to share her expertise and experience with clients while simultaneously supporting charitable organizations and community events. Barbara’s favorite saying is: “The real secret of happiness is not what you have or what you receive; it’s what you share.” You can find her on Google+ and facebook or write to her at barbara@financinghope.com.au.