the one thing you need to consider when it comes to your tax refund


Tax refund season is upon us again! Woohoo!!


Before you run out the door with your refund in your hand, hold your horses!... or rather, hold your spending impulses! As exciting as it is to be getting money outside of your regular income and budget allocations, these are the injections that can really make an impact on your long-term financial goals. 


We understand how tempting it can be to go on a shopping spree or book a holiday, especially if you’ve been diligent about sticking to your budget and paying your bills on time. However, if you have been following our Money Tips allocating money for your ‘Wants’ (which covers occasional purchases and holidays) is money you can use for these sorts of things.


Unexpected money’ (money outside of your regular income such as tax refund, bonus or inheritance) is something we suggest that you don’t consider as part of your income or money to just spend. This money is a good opportunity to get ahead on your loans, widen your emergency fund coverage, allocate to savings or start investing. 


When you receive ‘unexpected money’, the first thing we need to think about is where this money can make the most impact on your financial goals.

If you have existing debts or loans, we recommend that you consider making lump-sum payments to them first. This will not only shorten your loan period but will also save you wasting money on interest, possibly saving you hundreds of dollars in the long term.


Once you’ve paid the lump sum, keep making your regular payments as if no lump sum payment has been made at all. The sooner you can pay off your loans, the sooner you can allocate your ‘loan repayment’ funds to other sections of your budget such as investments and savings, or maybe even a holiday.



There is no fast-forward to success, but if you focus on your end goal and allocating all your ‘unexpected money’ where it will make the most difference, it’s a sure ticket to reaching your financial goals faster.  Imagine being debt-free with savings, boy, that’s winning in the #debtfreecommunity right there! 

CONTACT

your Debt Angels Team!

1300 722 560

DEBT ANGEL SOLUTIONS PTY LTD

P.O.  BOX 1632 / Warriewood / NSW 2102

© 2020 by Debt Angel Solutions

All information provided by Debt Angel Solutions Pty Ltd on this website is for general information purposes only. It is not to be construed as advice. All information is provided in good faith, however, we make no representation or warranty of any kind, expressed or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information provided and should not be relied upon for making decisions. The information does not take into account personal situations and therefore is general in nature. All external submissions are independent and are the opinion of the author and do not constitute financial advice or otherwise. We have no affiliation, link, agreement or financial arrangement with any of the information sources or providers. 

Debt Angel Solutions Pty Ltd strongly recommends that you perform your own independent research before making decisions of any kind.

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