As we head into tax time—the worst but somehow also the best time of the year—we're already starting to think about how to spend our cash return. Every year we know that right after we recover from the stress of trying to figure out how to successfully lodge all that paperwork, the next point on our agenda is working out how to best spend the results of our hard work. So this year, we reached out to Joel Robbie, CEO of Nod (a financial services business dedicated to on-demand advice), to share a few wise strategies that won't see our tax returns go to waste.
We've asked Robbie to provide his expert advice on how to best leverage your mid-year "bonus" depending on the amount of return you usually receive. Broken up into two realistic categories—Be Sensible and Take a Risk—there's no need to be unsure of what to do with your tax return this year.
Keep reading to find out your new plan.
Be Sensible: "I'd use this as a starting point to learn how to invest—it's a great skill to learn. I'd buy a few books on the subject, sign up to some newsletters, and maybe create a small portfolio."
Be Sensible: "I'd invest that money in an assets and shares. There's ways to do this in a pretty low-touch way, like investing in a managed or exchange-traded fund. It's always worth getting advice from a professional on how to get started."
Take a Risk: "I'd go on an overseas holiday. You can travel to so many places for a reasonable price these days. Think destinations like Vietnam, Hawaii, Japan, and New Zealand. Great life experiences always deliver a high rate of return in my book."
Be Sensible: "I'd either reduce my debt by paying down a chunk of my mortgage, or put it in an offset account as emergency savings."
Take a Risk: "I'd start a business. It's never been easier than it is right now to start your own business as it costs next to nothing to build a quality website yourself (check out Wix or Squarespace). Lots of businesses fail and it's really hard work, but with a $10,000 financial starting point, you can find out whether you've got what it takes."
How are you planning on spending your tax return? Let us know in the comments below.