Any typical personal who receives a juicy tax refund will go out a buy something that they have long wanted or needed. Some of us have even spent our tax return before we have received it! Here at Nixer we want to help you with some recommendations on how to better spend or invest your tax refund.
1. Invest in a provider such as Raiz – Raiz is a financial service, who help you save and invest your money. Investing can be a challenge for those new to it, Raiz are the leaders in helping those get their foot in the investment door. By investing small amounts at a time, Raiz will invest your money for you and provide you with various options to grow your little investment baby. Click here to check Raiz out for yourself!
2. Pay off your credit card or other debt – There is not many things worse than paying the bank interest when you don’t need to, especially at the ridiculously high interest rates that are charged on credit cards. Whilst this is definitely not the most exciting way to spend your tax return, it is definitely a rewarding one as you will waste less money on interest!
3. Put your refund in to your home loan or your mortgage offset account – An alternative to paying off your credit card debt is to pay off your home loan. Home loan interest isn’t quiet as high as credit cards, however interest is interest and is better in your pocket rather than the banks. Your mortgage provider usually offsets a mortgage offset account which is essentially a savings account and reduces the amount of interest charged on your home loan. It would also be beneficially to invest your tax refund in this account and reduce your mortgage interest and not be tax on the interest earned in this offset account!
4. Invest the money in your home – Renovating or repairing your home can often add more value than it will cost you. This can be a smart way to invest your tax refund as it will improve that value of your home and hence increase your net worth!
5. Contribute the money to your superannuation – this may seem boring and you may not see the benefit in the near future. However when you retire you will definitely appreciate your decision, the more you invest in super throughout your life, the better your retirement is likely to be! Contact your superfund to find out how you can invest in your tax refund.