Getting a tax refund, bonus or inheritance
Top tips to make the most of your
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
Here are some smart ways to spend this money that will give you
Pay off debt
It's best to pay off your higher interest debts like credit
You could use this money to pay off your credit card bill or pay
down your mortgage or personal loan.
Paying off debts means you'll pay less interest and save money.
For more information see making repayments.
Work out how much you'll save in interest by making extra
Credit card calculator
Put it in a high interest
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
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
Contribute extra to your
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 how to make extra super payments see contributing extra to
Work out how contributing more to super can affect your final
Investing your windfall can really make your money go
If you're new to investing, start with 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
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
Think through your options and use your windfall
to give you a real financial boost.
Last updated: 10 Feb 2017