If there’s one thing to look forward to after the end of the Financial Year, it’s doing your tax return and getting that big lump sum of your money back and into your pocket! It may be burning a hole in your pocket and you might be wondering what to do with all that extra dough.
According to H&R Block, one of the biggest tax accountants in the world, Australians are looking at an average of $2,800 back from the tax office. Here are five ways to use your tax refund for a brighter financial future.
Pay off outstanding debts
The first thing you should consider using a tax return for is to pay off outstanding debts. These may be credit card debts, small personal loans, payday loans – even the teeny tiny ones from Fundo. Paying off your debts not only gives you a bit of breathing room, but it can also help repair your credit score as well as your special Fundo credit score in case you need loans in the future. Be sure to tackle the loan or credit card with the highest interest rate first before moving on to other debts. If you have a lot of debts, check our FAQs for possible solutions.
Invest in yourself
One of the things we often overlook when it comes to investment is ourselves. If we want a better job, we might need to invest in education; if we want to open up more opportunities, we may need to buy a new car or vehicle to get us there. It could be anything: as long as you get a little bit better at something at the end, it can be worth it. You might need a small loan to pay for other bits and pieces such as books or insurance, so don’t forget that we can help you there! Either way, “future you” will thank you for it!
Top up your superannuation
With the cost of living rising and the future uncertain, topping up your superannuation with a personal contribution is always a good idea. Visit the ATO website for more information on how to do it and what tax implications are involved.
Put it away into savings
Having an emergency fund or a rainy day fund is always a good backup when things don’t go as planned. You might need to take emergency flights, pay for unexpected and urgent bills like car repair or dental work – and having an emergency fund of at least two to three months’ worth of pay can also help if you ever find yourself out of work. Be sure to look for high-interest savings accounts or term deposits to ensure your money works harder for you. If the unexpected happens before you can save up your nest egg, you can always turn to Fundo small loans for help.
Invest into shares or assets
Rich people are rich because they buy assets that accumulate value – that being shares, property, crypto, or precious metals. The old saying “the best time to invest was ten years ago; the second best time to invest is right now” is truer than ever – and you may want to put some money into a managed fund, exchange traded fund (ETF), or asset portfolio. Some micro-investing apps get you started and help you save money by rounding up transactions and investing into funds as you go.
All of these can help grow your wealth and put you on a path to real growth and financial independence – be sure to talk to your financial adviser first to see which investment is right for you.
FAQs:
An unexpected bill came up before my tax return did. How can I cover it?
We understand that life happens – cars crash, appliances break down, loved ones get sick, and we are involved in accidents we wish didn’t happen. These usually come with hefty bills – that need payment fast. Fundo offers Australians urgent cash loans ranging from $500 to $5,000 with flexible repayment terms and no hidden fees so you can make an informed decision.
How long does it take to get a small cash loan?
Using Fundo’s industry leading secure dashboard, if you answer all our questions and are eligible for a small loan, you can be approved within three minutes and have the funds in your account within 60 seconds. It really is that easy!
Am I eligible for a small cash loan?
We want to help as many people as possible, within the regulations of responsible lending. Therefore you need to meet our eligibility criteria before we can accept any application:
You must:
- Be over 18
- Eligible to work in Australia
- Earn at least $300/week in regular income, excluding government benefits
- Demonstrate an ability to meet repayment deadlines
- Be sure it leaves you in a better place financially than it did coming in.
If that sounds like you, feel free to begin your application using our three-click application system on the Fundo dashboard!
I got an email offering me a zero interest loan with no repayments for six months! Should I take it?
Absolutely not! This is most likely a scam and should be ignored. Do not click any links in the email and send it to your junk or spam folder. If the email alleges to be from Fundo, send it to hello@fundo.com.au and Scamwatch so we may investigate. To learn how to spot loan scams, click here for our blog on common scams and how to avoid them.
Why should I choose Fundo for a small loan?
Because Fundo put the fun back into funding. Our secure dashboard means you get your funds quickly – in under 60 seconds for approved applicants – leading to hundreds of satisfied customers all around the country! We offer fast funding, flexible payment terms, and affordable fees. Plus, our Fundo credit score system offers great perks, just for paying off your loans on time! What more could you ask for!
