Your Tax Refund: How we’d spend the cash windfall!

Have you started thinking about what you are going to spend your tax refund on? With 77% of Australians likely to get a tax refund this year, many have already made plans for what to do with their cash windfall, whether it be a holiday, a new piece of furniture or some other indulgence that’s been on their ‘list’ for a while.

 

But what if you could really make the most of this ‘extra cash’, so that you could enjoy both a short-term boost to your quality of life and at the same time, funnel this windfall into some smarter savings or investment options, so that you can reap the rewards of this years return for many years to come?

 

Creating financial goals has been well documented to bring psychological and lifestyle benefits and what better time to start than now, when you have a great chunk of extra cash in your account?!

 

 Here’s what we’d do:

  1. Get rid of debt!

Clearing a portion (or all, if you can!) of your debt is always a great place to start. Directing some of your refund into paying off your credit card, personal loans or getting ahead on your mortgage will save you money in lowering the interest you’d be paying down the track!

 

  1. Improve your Savings balance!

Studies have shown that individuals with savings enjoy better wellbeing and have lower levels of stress.  By putting a portion of your tax return aside for a rainy day, you are doing yourself a world of good in improving your financial resilience and lowering stress levels now and into the future.

 

  1. Plan ahead

Even if retirement is still a while off, making good financial choices now can impact your living standards and quality of life when you decide to stop working . Putting a lump sum into your super can also be a smart short term solution, as any money invested in your super fund will be subject to a lower tax rate, resulting in a tax effective way to invest your money.

 

  1. Invest

Once you’ve paid off debt, have a nice buffer of savings and are taking care of boosting your super balance, you can start to think about your investment portfolio. We suggest you speak to your Axios financial planner to help you decide what the best investment options are for you, taking into consideration your investment timeframe and risk tolerance.

 

Whether it’s a bonus $1,000 or an impressive $10,000 you’ll be receiving this year for your tax refund, it makes good sense to think ahead about how you can work with this extra cash to benefit you financially both today and tomorrow. A conversation with your Axios Financial planner can go a long way in helping you to plan for your financial wellbeing well into the future.


Axios Financial Solutions are a team of respected and highly regarded financial planners with offices on St Kilda Rd Melbourne.  Axios helps their clients meet their desired outcomes by providing tailored financial services, strategies, advice and solutions.  You can contact them at info@axios.com.au or (03) 9869 5555.

Axios Financial Solutions Pty Ltd (ACN 007 299 014), is an Authorised Representative of Charter Financial Planning Ltd, Australian Financial Services Licensee 234665

Please note that the information in this article is of a general nature only and has not taken into consideration your individual circumstances. Should you wish to discuss your personal circumstances please call us on 03 9869 5555 or email info@axios.com.au.

Level 3 The Metropolis
480 St Kilda Road
Melbourne Vic 3004