What are you going to do with your tax refund this year?

If you have received a tax refund this year, have you considered what you are going to do with the extra money in your pocket?

If you go out and spend it, all you are doing is giving part of it back to the government in the form of GST. Now is the time to plan how you can use it to improve our lifestyle in the future - or even to start afresh for the coming new year.

When you are making your plans, here are some things to think about:

Paying off your debts
One of the best ways you can spend your tax return is to put it toward your mortgage or pay off some of your credit card, car or personal loans. The more you pay off your debts, the less interest you pay and the better your financial position will potentially be in the future.

Investing in your future
If you already have your debts under control and you're expected a tax refund, why not use some of it to add to your savings? This can also be a great chance to begin a regular savings plan and commit to putting aside a portion of your income into this fund on a weekly or fortnightly basis. This may help you achieve your goals, such as buying a home, taking a holiday or preparing for retirement.

Top up your super
If you're nearing retirement and you're expecting a tax refund, why not use some of it to make a contribution to your super account?

Have a plan in place for what you want to do with your tax refund. We recommend investing most of it wisely. While it's important to be financially responsible, we also know that it is important to enjoy life, so don't forget to treat yourself and your family to something special. Please feel free to call Intellichoice if you would like to discuss how to make the most of your tax return this year.