Although doing your taxes can feel like a chore, it has the potential to result in a substantial tax refund for many Australians. While it may be tempting to indulge yourself with the tax refund, there is always a lingering thought reminding us to spend it wisely. One smart way to invest your tax refund is by adding value to your home, and you don't necessarily have to undertake a major renovation to do so. Don’t let it go to waste! Here are some suggestions on how to invest it in your home and reap the rewards for years to come.
Making the switch to LED lighting not only helps you save money but also contributes to a better carbon footprint. LED lights consume approximately 75% less energy compared to halogen bulbs and have a lifespan that is 5 to 10 times longer. This significantly reduces replacement expenses and minimises the number of discarded light bulbs in landfills. Depending on the type of light fixtures you have, it may be necessary to enlist the assistance of an electrician to facilitate the transition.
Give yourself the gift that keeps on giving - go solar. With the escalating energy prices and the increasing cost of living, it's a sensible choice to take control of your household budget in the long run. By exporting the excess power generated by your solar panels back into the grid, you receive a credit on your quarterly power bill. In 2021, the average credit for Australian households with solar was $280 per quarter. That's a substantial savings, and most individuals discover that their solar installation pays for itself within four years.
Beyond enhancing your home's aesthetic, the appropriate choice of blinds, shutters, or curtains can lead to substantial savings on your energy bills throughout the year. By opting for curtains and blinds that effectively block out light, you can maintain a warmer environment in winter and keep your home cooler during the summer months. With a wide range of options available, there are choices to suit any preference and style. Whether you prefer curtains, blinds, or shutters, you'll find abundant options to meet your needs. For an added touch of luxury, you can even consider motorised curtains and blinds.
Sometimes, the most impactful changes are the ones that go unseen. Installing insulation can have a significant impact on maintaining a comfortable temperature in your home throughout the year. Moreover, it reduces your dependence on heating and cooling systems, resulting in valuable savings on your energy expenses. Fortunately, adding or replacing insulation in your ceilings and walls is a relatively straightforward process. If your home is elevated, incorporating underfloor insulation will be a delightful addition, especially for those chilly winter mornings when walking on timber or tiled floors with bare feet.
Put it in your mortgage offset account
If your house is already just the way you like it, perhaps the best thing you can do with your tax return is put it in your mortgage offset account. With interest rates on the rise, it is wise to reduce the interest you pay by getting ahead on your mortgage and establishing a buffer for a rainy day.