Tel: (02) 9633 3300 Facebook LinkedIn
Client LoginAdviser Login
  • Home
  • Who we are
    • Who we are
    • Our Team
      • Simon Clifford
      • Tony Fox
      • Troy McPhee
      • Robert De Ceglie
      • Siboney Corrales-Palacio
      • Ben Atkins
    • 24 hours – A day in the life of Adviser fp
  • What we do
    • What we do
    • Financial planning
    • Financial planning process
    • Gearing
    • Personal insurance planning
    • Redundancy planning
    • Superannuation & retirement planning
    • Self managed superannuation funds (SMSF)
    • Family Business
    • Aged Care – Family & Financial Decisions
    • Information tables, rates & calculators
    • Glossary of terms widely used in financial services
    • General Advice Warning
  • Why choose Adviser fp
    • Adviser fp Client Experience
    • Do you need a financial planner?
    • Your first meeting
    • Five common financial planning mistakes
  • News, Articles and Updates
    • News
    • Financial Knowledge Centre
    • The money needed for a comfortable retirement
    • Buying Life Insurance direct: All is not as it seems
    • The great Australian dream
    • Financially Speaking newsletter
    • Economic Update
    • Financial markets summary & table
  • Contact us
Smart Things To Do With Your Tax Refund

Smart Things To Do With Your Tax Refund

Date: June 1, 2018

Are you likely to receive a tax refund this year? And if so, have you thought how you might spend it?

As tempting as it might be to use the money to go on holiday or buy that new TV, it can pay to be a bit more mindful about how you intend to spend the money so you don’t feel regret once it’s gone!

So how do you make the most of your tax refund?

The key is to work out where it will make the most difference to your financial wellbeing. You might consider reducing debt, putting it away for the future or using it or part of it to reward yourself.

Here are a few smart ways you could be using your tax refund this year:

  • Repay Debt  – It might sound boring, but making repayments on your credit card, car loan or home loan is a sure-fire way to help you get ahead. When you have debt and are paying interest, you are tying up cash flow that you could otherwise be spending or investing elsewhere. Unfortunately, debt is a leading cause of stress for many Australians, so it can help to stay on top of or even ahead of your commitments.
  • Create an Emergency Buffer – The best way to make sure that you won’t be out of pocket in case unexpected expenses crop up is to set up an ‘emergency fund’ or cash buffer. As a general rule of thumb most people set aside around six months of living expenses as a reserve. Your tax refund could be a great way to help you set up this cash reserve. It not only provides peace of mind, but ensures that you don’t have to borrow funds or swipe the credit card when the unexpected occurs.
  • Put Money Towards Savings – Do you have a financial goal that you’re hoping to achieve? Perhaps your tax refund could be the perfect savings deposit for that new car, home, wedding, holiday, or even an effective way to top up your retirement savings.
  • Go On Holiday – If you’ve been working hard and are in need of a break, then a holiday may be the best way to spend some, or all of your refund. More often than not, even a short break can help you relax, de stress and re-energise.
  • Invest in Yourself – One of the best investments we can make is in ourselves or our loved ones. Is there a course or professional development program that you’ve been considering, or a new hobby that you’d like to take up? Investing in ourselves can boost our wellbeing and increase our happiness. It can also provide benefits on both a personal and financial level, such as increasing our confidence or expanding our skill-base, sometimes leading us to other employment opportunities, or even a pay-rise.
  • Investing in Health and Wellbeing Activities – Have you been meaning to join the gym, try a new yoga class or visit the dentist? Improving our health and wellbeing is an important long-term investment and a worthy way to spend your tax refund.

When it comes to spending your tax refund, the right option will likely be different for each of us and may even be a combination of some or all of the above. The trick is not to be tempted to rush out and spend all the money right away, but instead to find the right balance and take the time to think about what will really make a difference to you personally. Consider the present and future self when revising the investment and spending options before you, and you can get the most value from your tax refund.

Share this Story

  • Facebook
  • Twitter
  • LinkedIn
Categories
  • Aged Care
  • Budgeting
  • Business Succession
  • Buy / Sell agreements
  • Capital Gains
  • Cashflow Management
  • Centrelink
  • Certified Financial PLanner
  • Charitable Giving
  • Economic Outlook
  • Emerging Markets
  • End of Financial Year
  • Estate Planning
  • Financial Markets
  • Financial Planning
  • Financial Planning Association (FPA)
  • Goals
  • Income
  • Investment
  • Life Insurance
  • Lifestyle
  • Market Outlook
  • Partnerships
  • Philanthropy
  • Politics
  • Professionalism
  • Property Investing
  • Retirement
  • Risk Management
  • Salary Packaging
  • Savings
  • Sharemarket
  • Succession Planning
  • Superannuation
  • Tax Planning
  • Taxation
  • Uncategorized
  • Wills
Archives
  • March 2022
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • June 2017
  • May 2017
  • February 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
Adviser FP
Adviser fp Pty Ltd is an Authorised Representative of FP Advice Pty Ltd
ABN 30 637 518 533 | AFSL 520310 | Financial Services Guide

Adviser fp Pty Ltd is proud to be an approved FPA Professional Practice

This information is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from a financial planner and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.
Copyright © 2022 Adviser fp Pty Limited. All rights reserved.
Professional Practice
  • Privacy Policy
  • |
  • Financial Service Guide
  • |
  • Making a Complaint
  • |
  • Conditions for using this website
  • |
  • Site by wolff