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Tax Refund Cheques - Tips On How You Can Use Them

By Sandy Naidu | August 1, 2008







Its the first August today and soon and many Australians will start getting their tax refund cheques. Filing your tax return is a lot of effort but the cheque that comes in afterwards, makes all the hard work worthwhile (unless you have to pay the ATO).

Don’t let your money sit in your everyday savings accounts. This way it will only cover your everyday expenses. The rising cost of living might encourage you do this. But resist the temptation. Before you know all your money will be gone - into the petrol pump, into your grocery bill, into the local restaurant, into some new shoes etc etc…




Here are some tips on how you can use your tax refund money


1. Pay Off Your Debt: If you have an outstanding credit card bill or a personal loan, pay that off. It will not make any financial sense to spend this money on a car or a flat screen television (or any other depreciating assets) if you have existing debts.

2. Mortgage Payment: Make extra payments towards your mortgage.




3. Shares: Share market has been falling lately. It might be a good time to invest in stock market. Don’t buy any speculative stocks. To be on safe side, buy only blue chip stocks.

4. Superannuation: Investing any extra money you have into super is always a good thing. As most of the readers know there are a lot of tax advantages as well.

5. First Home Buyers: Put it into your first home savers account.

6. Half and Half: If you need a break then spend half on a holiday and the other half on any of the above…But if you have debt (other than mortgage), you have to pay that off first. If you have debt, you should not be reading past the first point of this post. That is where all your money should go.

Mine is going towards my mortgage. Let me know where yours is going.



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Topics: Taxes |

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