Getting a windfall
Sensible things to do with your extra
If you get extra money or 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
Pay off debt
It's best to pay off your higher interest debts like credit
If you put your extra money towards paying off your debts you'll
pay less interest and save money. You could use it to pay your
credit card bill, your mortgage or a personal loan.
For more information see making repayments.
Put it in a high interest
If you put the money in a high interest savings account it will
grow with the power of compound
For example, if you put a $2,000 tax refund into a high interest
savings account that earns 6% interest, in 5 years time you'll have
To find out more see savings accounts.
Contribute extra to your
Making extra contributions to your super can really boost the
amount of money you have to retire on.
If you earn less than $48,516, 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
The super vs mortgage calculator can help you work out where you
should be putting your spare money.
Super vs mortgage calculator
Investing your windfall will 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 from an inheritance or a
redundancy payment, you should get financial advice. An adviser
will be able to help you work out a strategy to make the most of
For more information see financial advice.
While it's always nice to spend extra money on
luxuries, think through your options and see if your windfall can
give your finances a real boost.
Last updated: 24 Sep 2013
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