In my “Motivation and Inspiration to do your taxes” video I discussed the different ideas available to you, to use your tax refund (if you get one) to your financial advantage.
A lot of people simply spend their refund as soon as it hits their accounts. However if you stop and think about it, you could actually use your tax refund to make a very powerful and beneficial change in your financial future. Not only is the incentive of getting a potential refund a great motivation to do your taxes, but by having your taxes properly lodged, when it comes to taking big steps in your life, such as borrowing to buy a home, or applying for an investment loan or simply buying a car, you will need to be able to show that you have been responsible with your income and paid and lodged your taxes correctly.
So this financial year, I decided to use $3,000 from my personal tax refund towards The $1,000 Project. I added $2,000 worth of Woodside (WPL) to my portfolio to add some further diversification through the energy sector and $1,000 more into the already diversified STW ETF. Which means that my estimated passive income is now $1,670 p.a. which is 83.5% of the way to achieving my goal. Whilst the deadline has actually finished, I am just waiting to receive some final funds from some extra work that I did in my spare time and then I can give you the final run down of the project and tell you about my new goals for the project!