Getting a tax refund, bonus or inheritance
Top tips to make the most of your
windfall
If you get a windfall such as a tax refund, a bonus, or an
inheritance, you might be tempted to splurge on things you don't
need.
Here are some smart ways to spend this money that will give you
long-term benefits.
Pay off your debts
You could use this money to pay off your credit card debt or pay
down your mortgage or personal loan.
Smart tip
Pay off higher interest debts like credit cards first.
Paying off debts means you'll pay less interest and save money.
Find out how you can reduce your debts faster by making extra
repayments.
Work out how much you'll save in interest by making extra
repayments.
Credit card calculator
Put it in a high interest
savings account
Make this the start of a new savings plan by putting the money
in a high interest savings account. There your money will grow with
the power of compound interest. For example, if you
put a $3,000 tax refund into a high interest savings account that
earns 5% interest, in 5 years time you'll have $3,850.
To find out more see savings accounts.
Work out what money you will have if you save a regular
amount.
Compound interest calculator
How Australians spend their tax refund
Take a look at our tax refund
infographic to find out the average refund and how people spend
it.
Contribute extra to your
super
Making extra contributions to your super can really boost the
amount of money you have to retire on. The catch is you won't be
able to spend it until you retire.
If you are on a low income, the government will match your
after-tax super contributions. The co-contribution matching rate is
50c for every dollar you contribute up to a maximum of $500. For
more information on boosting your super see super contributions.
Work out how contributing more to super can affect your final
super payout.
Superannuation calculator
Consider investing your
windfall
Investing your windfall can help you grow your money and keep it
safe. If you choose to invest, make sure you take the time to
consider your investment goals.
If you're new to investing, read our article explaining the golden rules of
investing.
If you would prefer to rely on professionals who are skilled in
making investment decisions, a managed fund could
be right for you. For more information see managed
funds.
Get financial advice
For large amounts of money, such as an inheritance or a
redundancy payment, you should consider getting financial advice.
An adviser should be able to help you work out a strategy to make
the most of your money.
We have tips on what to look out for when you are choosing a financial
adviser.
Think through your options and use your windfall
to give you a real financial boost.
Related links
Last updated: 09 Aug 2017
