Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)
Lithium
44.97
0.87%
Gold
2,709.90
0.83%
Copper
4.07
(0.07%)
Oil
71.24
1.51%
Bitcoin
97,525.73
(1.49%)
FTSE 100
8,262.10
1.38%
Nikkei 225
38,283.85
0.36%
Dow Jones
44,296.51
0.97%
Iron Ore
100.20
(1.77%)
USD/AUD
0.65
0%
Hang Seng
19,229.97
(1.96%)

Top 6 Ways Investors Are Using Their Extra Dough

With the stage three tax cuts rolling in, many Australian investors find themselves with a bit of extra cash. Instead of letting it burn a hole in their pockets, they’re putting this newfound money to work in various ways. According to a survey by the online trading platform Stake, one in five investors plans to use their tax-cut savings to buy shares. But that’s not the only way they’re spending their extra dough. Let’s dive into the top six ways investors are putting their tax-cut savings to good use, with a particular focus on the exciting world of share investing.

1. Investing in Shares: The Smart Play

Imagine this: You’ve just received your paycheck, and thanks to the recent tax cuts, it’s a little fatter than usual. You’ve been following the stock market and know there are some great opportunities out there. So, you decide to put that extra money to work by investing in shares. You’re not alone. According to Stake's survey, 21% of investors are using their tax-cut savings to buy shares. Why? Because investing in shares can potentially offer significant returns over time. 

The survey highlighted five popular ASX shares among investors:

  1. Vanguard Australian Shares Index ETF (ASX: VAS): This ETF tracks the S&P/ASX 300 Index, giving investors exposure to the largest companies on the Australian stock market.
  2. iShares S&P 500 ETF (ASX: IVV): This ETF tracks the S&P 500 Index, providing exposure to the 500 largest companies in the US.
  3. Vanguard MSCI Index International Shares ETF (ASX: VGS): This ETF tracks the MSCI World ex-Australia Index, offering exposure to about 1,500 companies from 23 developed countries.
  4. Betashares Nasdaq 100 ETF (ASX: NDQ): This ETF tracks the tech-heavy NASDAQ-100 Index, featuring top tech companies.
  5. Investors are also eyeing individual stocks like Pilbara Minerals Ltd. (ASX: PLS), despite recent declines, betting on their recovery and growth in the lithium market. By strategically investing in shares, you’re setting yourself up for potential long-term gains, making your money work harder for you.

2. Tackling the Cost of Living

Amidst rising interest rates and persistent inflation, 31% of investors are choosing to use their extra cash to manage the cost of living. This includes everyday expenses like groceries, utilities, and housing. With the financial pressure on households, the tax-cut savings offer a bit of relief, allowing people to maintain their standard of living without having to dip into their savings or incur more debt.

3. Saving for a Rainy Day

Another 31% of investors plan to stash away their extra funds for emergencies. An emergency fund is a crucial financial safety nett that can cover unexpected expenses such as medical bills, car repairs, or sudden job losses. By having this fund in place, investors can avoid the need to sell off assets like shares at inopportune times, ensuring they can maintain their investment strategies even in the face of unforeseen financial challenges.

4. Paying Off Debts

Debt can be a heavy burden, and for Anna, it’s been a constant source of stress. She’s decided to use her tax-cut savings to pay off her credit card debt. Anna joins the 24% of investors focusing on debt repayment. By reducing her debt, she’s lowering her monthly interest payments and freeing up more money to invest in the future.

5. Funding Holidays and Travel

Travel remains a popular choice for 19% of investors, who are looking to use their extra money to fund holidays and travel plans. After a period of travel restrictions and lockdowns, the desire to explore new destinations and enjoy experiences is stronger than ever. This discretionary expense highlights the importance of balancing financial responsibilities with enjoying life’s pleasures.

6. Saving for Retirement

Lastly, 19% of investors are planning to use their tax-cut savings to boost their retirement funds. By making additional contributions to their superannuation, they can take advantage of concessional tax rates. Superannuation contributions are taxed at 15%, which is often lower than the marginal income tax rate for most people. This strategy not only increases retirement savings but also provides further tax benefits.

The recent tax cuts have provided Australian investors with a unique opportunity to enhance their financial strategies. Whether it's investing in shares, managing the cost of living, saving for emergencies, paying off debts, funding travel, or saving for retirement, investors are making thoughtful decisions with their extra funds. This diverse range of uses underscores the varying financial goals and priorities of Australians, showcasing the importance of having a flexible and informed approach to personal finance.

As we move forward, it's clear that these strategic choices will play a significant role in shaping the financial well-being of investors across the country. Whether you're looking to grow your wealth, secure your future, or simply enjoy life, using your extra dough wisely can make a substantial difference.


Author

  • Malik Robinson has built a reputation as a knowledgeable venture capitalist and entrepreneur. With a career spanning over two decades, Malik has been involved in numerous successful startups and investment projects. He holds degrees in Business Administration and Finance, and his expertise lies in guiding companies through strategic growth and operational excellence.

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