Your Tax Refund
What have you got planned for this year’s tax refund? Maybe you’ll pay a few bills, or splurge on a holiday with the family. These are both great options, but have you ever wanted to do something more with your money? Take advantage of this savings stash that you receive each year and put it to good use – here are a few ways you can invest your tax return that you might not have thought of.
Investing in upskilling or refreshing your knowledge could provide you with a number of benefits, including career development, personal satisfaction and potentially even tax benefits – if the self-education course relates directly to your current employment, you could be eligible for a deduction when it comes time to do next year’s return. Check out the ATO website for more information on the rules and requirements around this.
Alternatively, take the opportunity to explore a new area of expertise that you’ve always wanted to learn more about. You could try something like currency trading (also known as Forex trading) which is something anyone can try. Forex trading is all about buying and selling currencies based on current exchange rates. The aim is to make a profit by buying or selling currency with the market trend. As with many investments, there is an element of risk, so make sure you understand the basics before getting in too deep. Quality educational resources like Learn to Trade can help you delve into the world of Forex trading strategies. Spending time learning the ins and outs will put you in a much better position to take advantage of the Forex market.
Pay off credit card debt
If it isn’t already on the list of things you would like to do with your tax return, it’s worth jotting it down right now. Credit card debt can be crippling, with some experts estimating it could take up to 43 years to pay back your debt if you stick to the minimum monthly payments. By paying off as much as you can in one go, you will reduce your debt and therefore the interest you will pay. Use this time of year to get ahead and stay there – there is no point in reducing your debt significantly and then celebrating by purchasing a new laptop or sound system with your card.
Start a rainy day fund
While getting on top (or ahead) of bills is great, sometimes it pays to put your money somewhere else. Chances are you have cash budgeted to pay the bills anyway, so if that’s the case then you might want to look into term deposits or high-interest savings accounts. That way you’ll end up with more cash in the long run which you can then re-invest or spend as you see fit.
If you aren’t in your forever home (and maybe even if you are) getting things done around the house is something many people put off or neglect altogether. Even if you only get $1,000 back, you could get small jobs done that will not only make your home more pleasant to live in, but it may also raise the value of your property. So if you have been meaning to get extra power points installed, repaint interior walls or get new flooring, now might be the perfect time to do it.
Unlike pouring your return into items that quickly depreciate, like a television, investing your hard-earned cash into one of the options outlined above is an option you are much more likely to see real, long-term benefit from. Do you have any creative ideas for your tax refund? Share your plans below!