With the cut-off date for tax returns looming uncomfortably close (October 31st), there’s not much time left for you to sort out your tax and claim your much-needed refund. Once you have your refund in hand, however, you might be persuaded to just go out and spend it all, without giving other options any real thought.
The problem with blowing your refund in this way is that you usually regret it later and wish that you had been more sensible with your money. So if you have your refund in hand before you go out and spend it on something you don’t really need, here are a few more sensible options for spending your tax refund.
- Pay off your debts: If you have a credit card debt or even a personal loan, the best strategy is to pay it down fast. The longer you take to pay off these debts the more interest you will be charged and the greater the debt. So paying off your credit card or personal loan is the best option for your refund.
- Put it in your savings account: You might be saving for a big purchase, for example, a deposit on your first home or a new car. Wasting your refund on frivolous purchases isn’t going to increase your savings, so give due consideration to adding your refund to your savings account for your big purchase.
- Save to your emergency funds: If you like to squirrel some money away for those emergency purchases, this might be the best use for your tax refund. After all, you can never tell when the water heater needs replacing, the swimming pool springs a leak or the retaining wall falls down!
- Spend it on a holiday: Another great option for your tax return is to spend it on a well-deserved holiday for your family. It’s not often that we can treat our families to a wonderful holiday, whether it’s in Australia or overseas, so this year it might be your time for a wonderful family holiday.
- Buy a caravan or camper trailer: Another wise investment for your tax refund is to purchase a caravan or camper trailer for your family. This helps you to save money on the family’s holiday accommodation and gives you more flexibility with your destinations as well.
- Do you want a boat? If you have always wanted to own a boat, you might consider putting your refund towards the cost of a boat for your family. There are plenty of options available, from a small inflatable, a fishing boat, cabin cruiser or a runabout.
- Motorbike: Another sensible option for your tax refund is to buy a motorbike for weekend getaways or just to make the commute to work easier every day. Bikes also cost less to buy and run than a car, so this might be a viable option for your family.
- ATVs and Jet skis: If you want some much-needed fun, you could use your refund to buy some serious toys for your family. Kids and adults love racing around the bush in an ATV and frolicking in a Jet Ski at the beach or the local dam. There are worse ways to spend your tax refund!
With all of these options, you should have no problem finding the best way to spend your tax refund this year – and if you want a competitive a loan to buy leisure assets for your family, call National Finance Solutions on 1300 13 50 50 or get an online quote today.
