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Level Up Your Savings: What to Do with Your Stage 3 Tax Cut Cash
Sep 11, 2024
The much-anticipated Stage 3 tax cuts are finally live, and for many Australians, it's like finding a hidden power-up in a challenging game. Whether you're scoring an extra $350 or a massive $4,500 in your pocket this year, how you use this bonus could change your financial future – think of it as leveling up your personal finances!
But before you rush out to spend it, let’s hit pause and explore some smart ways to put this extra cash to good use. From boosting your super to clearing those pesky debts, we’ve got a range of options that could turn this tax cut into a game-changer for your financial future.
Stash Your Cash in a High-Interest Savings Account
Interest rates are up, which might feel like a boss battle, but it could actually play to your advantage. With savings accounts now offering better returns than they did in the early pandemic days, parking your tax cut in a high-interest savings account could score you some extra points (aka interest) over time.
Plus, with economic uncertainty still lurking, having a solid savings buffer is like equipping yourself with an extra life – ready to help you tackle unexpected expenses or job loss down the track.
Supercharge Your Future with Super
Looking for the long game? Topping up your superannuation is like saving your game progress in a challenging level. Sure, you can’t touch it right away, but your future self will thank you for it!
Super contributions not only get taxed at a lower rate (hello, 15%!) but could help boost your retirement savings. To score this win, make sure you file a Notice of Intent with your super fund and keep an eye on your concessional contribution cap, currently set at $30,000.
Smash Your Mortgage with Extra Payments
In the fight against rising interest rates, your mortgage might feel like the final boss. Directing your extra cash towards your home loan could help you knock it down a few levels, reducing the interest you pay over time and freeing up future finances.
If you’ve got an offset account, you might consider parking your money there instead – it’s like having an item box you can dip into whenever you need a quick boost.
Clear Up Credit Card Debt
Credit card debt is like that tricky enemy that sneaks up on you, slowly chipping away at your health (or wallet). If you’ve got high-interest debt lurking around, now’s a great time to use your tax cut to pay it down. Clearing it now can free up more cash in the future for things you really want – and who doesn’t love beating a level faster than expected?
Final Thoughts
In the end, how you spend your tax cut is all about personal strategy – just like picking the right character for a game. Whether you’re saving, investing, or paying down debt, the key is making choices that align with your financial goals. And if you're unsure which path to take, don't hesitate to consult a financial adviser for some expert guidance.
This article provides general educational information only. The content does not take into account your personal objectives, financial situation, or needs. You should consider taking financial advice tailored to your personal circumstances. Life Sumo (Orion Enterprises (Cairns) Pty Ltd) has representatives that are authorised to provide personal financial advice. If you would like personalised advice - please click here to talk with our team.
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This website provides general educational information only. The content does not take into account your personal objectives, financial situation, or needs. You should consider taking financial advice tailored to your personal circumstances. Life Sumo (Orion Enterprises (Cairns) Pty Ltd) has representatives that are authorised to provide personal financial advice. If you would like personalised advice - please click here to talk with our team.
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