Tax Returns Should be Put Into Mortgage Repayments
Australians stand to save a whole lot of money (and I mean real cash) if they can be more heedful towards the way they treat their tax returns. Australians cannot shy away from their housing debt and using the tax returns to service their debt can be one brilliant strategy.
Australians not using their tax returns wisely
The reliable surveys lead us to disturbing conclusions. Only 40% or so Australians apply the proceeds of their income tax returns wisely. Of the rest, 23% can be pardoned for putting the amount straight into their savings account but what of the remaining 37%. You cannot be exempted for using your tax return amount to fund your luxury purchases. Life offers enough windfalls to cater to them.
You can save yourself some real cash by wise allocation of tax returns
By wise investment, I mean using the returns to clear your mortgage debt. If you claim a tax return of $2,000 per year, you could add it to your mortgage repayments each year and save yourself a whopping $77,000 (I am talking some real cash just as I said) over a 30 year period for a $300,000 loan. It is not rocket science to understand how this money can help and when.
Adding to your nest egg during retirement
Is it hard to decipher that our 30 year mortgage engagements will nearly expire at the time we retire? In such an hour, our nest egg will only get a boost with an amount nearly equal to 0.1 million dollars (considering that our tax returns may increase over years). For all we know, we can get ourselves a long-desired swimming pool or even use it to finance a well-spread overseas tour.
We look deep into our superannuation contributions and probe hard into our reverse mortgage options only because we try to meet up to what life may present us in our gray-hair days. Why then can’t we allocate our tax returns in a wiser way?
Where do you put your tax returns?