How to use your tax return money wisely

 

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It’s excellent news to hear when you’re due a tax rebate or return. It might be because you’ve paid too much tax for the financial year- this is often the case in the UK. It may also be because you’re on a Working Holiday Visa and are due to leave your host country.

However it’s all too tempting to just blow the money in one go. We take a look at the wise ways in using that extra lump sum

Put the tax refund money into a savings account

Financial experts suggest having around 6-8 months’ worth of your annual salary in a savings account or similar for ‘the rainy days’, not limited to unexpected dismissal or redundancy, change in financial circumstances or loss of property.

It’s advisable to start one if you don’t already have one and gradually build it up. Your tax refund money will increase the account substantially. Visit this site for more information : Www.taxreturnco.com.au

Buy the essential appliances your house needs

Has your household been in need of a new dishwasher, washing machine, cooker or other essential appliance or goods? You can use your tax return money to pay part or all for a new model saving you many months of saving up. You could also use the money to get your car maintained whether it needs to or not- it will save you a massive bill in the long run if you use part or all your tax refund money.

Pay off essential bills or outstanding payments

Your tax return money would present an excellent opportunity to pay off some outstanding loans or bills, whether it’s a student loan, a mortgage, credit card bill or other. This will save months of repayments and will increase your credit score.

Start a business

Nowadays it is far easier and more hassle-free to start your own business, whether it’s a floral shop, an e-commerce site or a web designing consultancy. Using the tax return money, you can put down some capital money for it. Experts suggest having at least $ 20,000 or more minimum before pursuing a business venture. Click here!

Alternatively, similar to the point above, it could also go towards some much needed stock, appliance, upholstery or other equipment for the business.

Invest in some shares

Using your tax return money to invest in some shares would be a profitable and wise decision. It’s now easier than ever to set up a portfolio, have a fund manager and start investing. The fund managers can also manage your account for you. They can also advise you which markets to invest some of your tax return money. Take a look at Hargreaves Lansdown for UK investing.

Conclusion:

There are a myriad of ways to utilize your tax return money in a wise and profitable way. It could be putting it into a savings account, paying off bills and credit, starting a business, buying new appliances or investing in shares. Whatever you do, it’s worth looking into getting the most out of your tax return money rather than blowing it in one go.

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