How To Spend Your Tax Return . . .


Wondering how to spend the windfall the taxman has given you? We share some responsible and some fun ways to spend the cash

It’s tax season again, which means many of you will receive a little extra money to play around with.

While it might be tempting to use the extra cash to splurge on that expensive pair of heels you’ve been eyeing, or that latest ‘must-have’ tech gadget, it’s important to start off with the seemingly less sexy option of settling outstanding debt.

Pay off your debt

This is arguably the most sensible way to spend your money. You should focus on settling debt that bears the highest interest rate, which is usually your credit card and personal loans. Making an extra payment towards your bond, regardless of the amount, will help reduce your repayment time-frame in the long run.

Boost your retirement and emergency savings funds

If you’re in the enviable position of being debt-free, consider putting a portion of your windfall towards buffering your rainy day fund as well as your retirement savings.

ALSO READ  Here are 10 Harmful Skin Care Mistakes You Should Stop Making

According to universal standards, having a savings account that contains approximately six-months worth of living expenses is considered a healthy rainy day fund.

Pay premiums or monthly subscription fees once-off

Opting for a once-off annual payment option on life or car insurance premiums, monthly subscription fees like DStv, or something sensible such as school fees could actually save you a bit of money. Most insurance companies charge a monthly transaction fee, which you can avoid if you pay a lump sum.

Similarly, schools generally offer discounted tuition fees to parents who make a single payment at the beginning of the year, and the same goes for a DStv subscription.

Invest in your career

Personal development is an area many professionals neglect to their detriment. Remember to set money aside to pursue training courses that will develop your skills set and ultimately set you up for a promotion, or even prompt you to change careers and improve your earning potential.

But let’s face it, you work hard for your money after all and deserve to spoil yourself a little.

As the saying goes, all work and no play makes Jack (or Jill) a dull boy (or girl). It’s important to maintain balance in your life, so take the opportunity that a tax refund offers to do something you might not ordinarily consider.

Treat yourself to a holiday

While the Bahamas or Caribbean might be a stretch, make sure you book that holiday away – even if it’s locally.

Do your research and shop around for the best season and travel dates that will allow you to get the best trip for your money.

Do those home renovations you’ve been dreaming about

With bigger daily concerns to consider, home maintenance issues are often relegated to a ‘when it’s absolutely essential’ status.

Why not give your house a new coat of paint, fix your roof or splurge on those electronic appliances that will spruce up your kitchen.

Pamper yourself

We all have varying ideas about what pampering entails; the important thing is to do whatever makes you happy.

Whether it’s a day at the spa or buying a cost-saving gadget, (you can argue that digital subscriptions and online shopping is cheaper), celebrate your hard work in style.

source: destinyman

You Might Also Like