The one big change in personal taxes this year was that the earlier tax slab of 10% for income between 2.5 Lakh to 5 Lakh has dropped to 5%. What this means is that pretty much everyone who pays tax gets to save Rs 12,500 - every year!
Here are 6 suggestions on how to use this money.
#1. Give back to your parents.
Why not use this money to get your parents something? Buy that plane ticket to go visit them. Buy your father that watch they denied themselves or your mother the Saree that you always felt she deserved.
#2. Buy something special for a loved one.
What's a good life without your loved ones? An equally good use for this money is to buy something you have always wanted to gift them.
#3. Use it as a self-upgrade fund.
All successful women and men invest a lot in themselves, so they never stop growing in terms of knowledge and capabilities. Take these extra savings and invest in yourself. Take an online course to learn something useful that help your career or invest in good books that can expand your horizons.
#4. Treat yourself to an experience you will remember.
An experience, though intangible, always stays with you. Do a bungee jump or visit a nearby trekking destination. Do something you have not tried before but will leave you with something worth remembering.
#5. "Try out" mutual fund investing.
We spoke about using this money to gain an experience. That experience can also be mutual fund investing. If you haven't begun your investing journey yet, the finance ministry has given you an opportunity as well as the money to try investing in mutualfunds.
The sum of over Rs. 12000 can translate into an SIP of Rs. 1000 each month for a whole year. You really don't need much to get started.
#6. Join a gym and get healthier.
You are nothing without your health. Take this windfall to finally get a gym membership and get started towards getting that fitness level you have always dreamt of.
Use this gift to grow, have fun, or try something new. After all, you don't want to scratch your head next year wondering where your extra tax saving disappeared? Don't be that guy or girl.
PS: Have a better idea? Let us know in comments.