Make the most of your tax refund
If you receive a tax refund this year, think carefully about what you should do with it.
Most of us will receive a tax refund about two weeks after submitting your tax return.
Your tax refund can seem like a gift or free money that we can use to treat ourselves, however, it could help to set you up for the future.
So how can you make the most of your tax refund?
Add to your savings goal
Putting some of your tax refund into your savings account could help you to reach your savings goal sooner.
Whether it’s buying your first car or saving for a trip with friends, think about what it will be like when you can go on a road trip or an adventure with friends, weeks or months earlier than expected.
By putting some of your tax refund into savings you’re one step closer to making your dream a reality.
Pay off debt
If you owe your parents money or have a debt like a car loan or an Afterpay balance, your tax refund could help you to get out of debt faster.
Putting your tax refund towards your debt will not only reduce the amount you owe, it could also help you to avoid paying interest and any late-payment fees.
Putting money in savings or paying off debt can feel restrictive so consider putting aside a small amount of your tax refund for fun.
Whether it’s buying a new phone case or going out with friends, treating yourself occasionally can actually help to keep your savings goal on track and you’ll be less likely to splurge and use up your savings.
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.