Just because the deposit rate is so low for the time being, you only get very little out of putting the money into a regular account. However, you may have some loans standing by which you pay lending rates. In other words, if you spend the money on making a bet on the debt, there is a lot of money to save.
When you pay more than the agreed monthly rate on your loan, you shorten the loan period. This will save you both interest and administration fees for the months you do not ultimately need to pay off on the loan.
Also read Become debt free – The possibilities of merging loans
Perhaps it is now you finally have to start a savings. It can be difficult to keep the motivation up to putting money off at the beginning of a savings when deposits are small and savings only grow slowly. The excess tax can be precisely the saline boost that allows you to begin a savings that provides more air in the economy and security in relation to unforeseen expenses.
Also read It is time to get a savings
Unless your excess tax is far above average, it is hardly something that completely overturns your finances – and there is no need to spend time and effort on major economic changes. If your excess tax is at the low end, the best way to feel the unforeseen income may be to go out and spend it on something you love.
Take an extended weekend, buy a pair of good shoes that last or invite someone you love to eat. The money is yours, and if your finances generally look sensible without big debts, there is no reason to hold back with the extra income the tax money often is.
“ For certain energy improvements or climate adaptation, you can at the same time withdraw craft salaries from tax and thus save money on next year’s tax bill.
If it’s a larger amount you get back on April 5, then consider raising your money by investing it. It can either be putting them in on a savings with a better deposit rate than on your regular account or buying shares – or it can be investing them in your home.
If you live in owner-occupied or cooperative housing, even smaller energy renovations can save you a lot of money in consumption. You can, for example, consider isolating better to save on heat consumption, replace the toilet to save water or put in new energy-efficient windows. For some energy improvements or climate adaptation you can at the same time withdraw craft salaries from tax and thus save money on next year’s tax bill.
Another good reason to renovate is that it often makes your home grow in value. The money that you get back in tax can thus both renew your home now and then and give you an increased sales price once you have to move.
Whatever you choose to spend your money on, remember to enjoy the added value of the account and think about spending the money on something you can feel.
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