It’s tax season and if you’re a salted taxpayer, you know that submitting your returns could end you up with a nice cash bonus, but do you see dollar signs when you get your cash back notification? Do you think of the long-awaited holiday you never had money for and the renovations you’ve been meaning to make?

So are we to spend or are we to save? Here are 5 things to do with your return.

Pay down a credit card

Did you know that according to the National Credit Regulator, over 39% of South African credit consumers have their credit card accounts overdue due to not being able to make their monthly payments? Not only does your credit score take a huge knock, but your blood pressure rises to unhealthy levels.

That’s why this is the perfect opportunity to use your returns as a down payment on your credit card. In the long run this could free up some budget to spend on wise things like long term investments and health care.

For more information on how to reduce your credit card debt, click here!

Save for a rainy day

You’ve heard this many times, but it’s surprising how few people actually save for emergencies – it’s much easier to swipe the credit card or take out a loan from the bank.

These days there are so many options in terms of saving. Starting with a simple savings account such as a 30 day account to restrict yourself from simply drawing the cash for everyday use can come in handy. Talk to your financial advisor or bank to provide you with the best options for your savings needs.

You will thank yourself when an emergency arises! Here are some of the more popular choices:

ABSA Save or Invest

Capitec Global Plan

Standard Bank Savings and Investments

Nedbank 32 day account


Down payment for your wheels

You need a good set of wheels. Sure, it’s a big expense, but the good news is that putting a down payment on your vehicle finance can save you on interest charges for the period taken and could even shorten the payment period.

Speak to your Finance House regarding the options for a down-payment and how it will affect your rates.

Also remember to keep your insurance updated to cover for any shortfall in the event of a loss.

For more info on how to get Credit Shortfall cover – click here.

Long term investment savings

Technically this counts as a saving as well as a spending, but sometimes you have to spend now to save in the long run! Using your tax returns for long term investments could potentially benefit you by making your money work for you.

Investing in property, bonds, stocks, real-estate or other long-term investment options with your tax returns will not only give you extra income, but could provide you with financial security for your future goals – whether this is an early retirement or a house on shore.

Keep bucks aside for life insurance

This might be one of the most overlooked spending items as many people don’t quite grasp the importance of making provision for an unfortunate end. Although most people are wanting to believe that death only comes with old age, unfortunately the reality is that it can happen at any time, which could leave you unprepared financially to take care of your family’s needs when you are no longer there.

To get your life insurance quote today, click here!

Start saving for that next tax increase!