Ways to make the most of your tax return this year
A guest post by Aliyah Lee.
Tax return time is upon us, and whether you’re a ‘get-it-done-early’ kinda person, or part of the ‘rushing-around- last-minute’ crowd (we all know who we are!) there are a number of ways to make it an easier process.
From deciding whether to do your own tax or leave it to an expert, to choosing what to do with your return (the fun part), we’ve put together some handy hints on making the most of your tax return this time of the year.
•Create an emergency stash. I know, I know – where’s the fun in that? But just drop those Manolo Blahniks for a moment and hear me out. With extra cash at your disposal, now is the best time to start squirreling away your money and create an emergency fund (if you haven’t already done so). Putting money aside doesn’t just make good financial sense, it can also save your sanity in the future. After all, should a (non-shoe-related) disaster strike in the future (say, you lose your job, get divorced or fall sick), you can at least rest assured that your emergency fund will buy you a bit of time until you get back on your feet. Of course, a sustainable emergency fund means you need will need to continually contribute to the fund long after establishing it. But, hey, everyone’s got to start somewhere!
•Get rid of your debts - Pay off pesky credit card debts, bills and get on top of mortgage repayments. Instead of purchasing more goods, focus on getting a clean bill of health on your finances. This means paying off credit cards and any other outstanding bills. Why not also consider paying extra payments on top of your regular mortgage payments? Although it may seem like small dents, making additional payments can add up in the long run!
Pay it forward - Look beyond yourself and gain some perspective. Be grateful that you live in a country where you have the opportunity to work, to get paid and yes, even pay your taxes. Donate some (or all) of your tax return to a cause where your small donation could literally could mean the difference between life and death of a child. Can you think of a more worthwhile cause to spend your tax return on?
About the author:
Aliyah Lee is a stay-at-home mum and was a financial advisor in her previous life. She now loves finding creative ways of giving back to the community and chooses to donate her time and money to a range of worthwhile causes around the world.
I received no compensation for this post.