There is nothing quite like getting back a larger tax return than you expected.
Suddenly images play over in your mind of your brand spanking new quad bike or a shiny new pair of stilettos.
You look pretty happy in your imagination but what about the reality of spending a huge chunk of cash on something so frivolous? Surely that hard earned money should go towards something more useful and in the long run, these decisions could benefit you immensely.
Here are just a few ideas for what you could use your tax return on.
1. Lump it on your loan
A lump sum payment on your home loan is a great way to spend your tax return. One big payment now can mean you avoid paying thousands in extra interest in years to come.
If anything, use a portion of your return towards a larger repayment so you’ll feel as though it’s gone to something important not just a new wardrobe.
2. Professional surveyors and inspectors.
This is a really good idea if your return falls around the time you’re about to make an offer on a property. Paying for a professional surveyor is something that might be a little pricey at the time but it will definitely give you peace of mind and also potentially avoid massive renovation issues and costs in the future.
If you already own a property, this might be a good time to get someone in to give you a quote on the work you need to be done but never had the funds to afford.
3. Renovating your existing property.
Even if you just got back a few hundred dollars in your return why not put that new coat of paint your bedroom has needed for the last 6 months?
Some larger tax returns could enable you to invest in sustainable energy like solar power. In the long run, these small improvements will mean potential return on your tax return investment.
So this financial year make a wise decision that your future self will thank you for.
Hold back on the extravagant one-off splurges and instead write them down ask for them at Christmas time.
Take the time to really think about where the money would be better off going. If you have an offset account, think about popping your tax return cash in there or maybe if you’re feeling incredibly responsible, put your tax return towards council rates and fees that will inevitably spring up later in the year when you least expect it.
Happy tax time everyone!