by Adam Volcov

As you head off to see your accountant this year, I am sure you have already spent your tax refund - new shoes, fishing gear or a family holiday just to name a few.  

While there is nothing wrong with indulging yourself with life’s little luxuries, with a little forward planning you may be able to, over time, significantly improve your financial position and lifestyle.  

To improve your financial position, you may wish to consider using your tax refund to:

1.    Repay personal debts such as credit cards and personal loans.  These debts typically have high interest rates and are not tax deductible.  It is therefore in your interest to pay them off as fast as you can.

2.    Reduce the interest on your mortgage by opening an “offset” account with your bank.  Over time, this money can be used to invest in income producing assets such as an investment property.   Interest paid on income producing assets is tax deductible and negatively geared assets (assets that generate a taxable loss) can be used to reduce the income tax you pay on your salary or business income, further improving your net financial position.  

3.    Invest in yourself.  As an employee or business owner, improving your knowledge and skills will increase your competence, self-confidence and income earning ability.  Investing in yourself will not only generate greater financial rewards, it will also provide you with a level of satisfaction and happiness that money alone cannot provide.  

By adopting these financial strategies and investing for the long term, you will significantly improve your financial position over time and enjoy the lifestyle you deserve.

For further information, please contact Adam Volcov at adam@affluenture.com.au or make an enquiry at www.affluenture.com.au.

This information is general advice only and you should consult with your financial advisor before implementing any of the ideas described above to ensure they are appropriate to your circumstances.