3 Things A Naturopath Is Doing With His Tax Return
What is the best thing you can do with your tax return? You only have 3 to choose from…. (and we're not going to say Naturopathy, Nutrition, and Herbal Medicine!)
Claiming as many deductions as you can against your taxable income is somewhat of a national sport in Australia. Believe it or not, it isn’t like this in every country around the world. The hope that we can get something back from ‘the taxman’ is deeply ingrained in our culture, and millions of us will be lodging our returns for 2019 in the coming months.
If you are lucky enough to get a refund, what will you do with it? You have 3 options:
1) Spend it
2) Save it
3) Invest it
Let’s look at each one.
Spend it – chances are this option will bring you the least long-term satisfaction. In 12 months’ time, you may not even remember what happened to the money. If you are going to spend it, it’s worth knowing that experiences bring us more happiness than goods, on the whole. Depending on the size of your return, it could be a meal out or a holiday. Make it something special and the memories will last. You could spend it on your health, such as treating yourself to a massage. If you are going to spend it on a good, make it something that is useful, durable and high quality, and that you will get to use many times over its life. Like a yoga mat or some weights. (This is a blog about Natural Health after all).
Save it – if you are a saver more than a spender, you may be tucking your return away for a rainy day. Good for you! Those that have a financial safety net tend to feel more secure in everyday life, and stress less, than those relying on the next paycheck. Saving is therefore good for your health. In fact studies have shown that we derive the same amount of pleasure from the act of saving up in anticipation of getting something as we do from actually spending the money. There’s just one tiny drawback to saving nowadays, and that is, interest rates. We say the word ‘tiny’ because that’s exactly where our interest rates are at the moment. Smallest they have ever been. Ever! A term deposit will get you a better rate than a normal savings account, but your $100 today may well be worth less than that in a year’s time. A variation on the ‘save it’ option is to take advantage of today’s low rates and put your return to work against any debt that you may have, be it credit card debt or a mortgage. It is a good time to pay off debt now. With interest rates at rock-bottom lows, they are more likely to up than down in the future, making that debt harder to pay off later.
Invest it – when you invest your money, you are making a calculated decision that by putting your money to work somewhere, it is going to bring you much more money in the future. An analogy is that if you have a sack of organic corn, you can either eat it now, or plant it, and have a full field of organic corn in the future. So, where to invest? Or rather, who to invest in? Invest in others and you hope to take a share of their profits. What if you invest in yourself? Investing in a way that allows you to earn more in the future, and/or do a job that you love, is the best investment you can make, and is likely to bring you the most happiness and wealth out of these three options.
Physical objects don’t last. They usually end up in landfill, either because they’ve broken or they’ve gone out of date. That phone you once obsessed over now sits in a drawer as a relic from the last decade. Perhaps worse than buying something you threw out is buying something that now costs you more money! Think of the dream car that now needs more maintenance, not to mention rego, petrol, insurance…..
Jobs come and go, and interest rates go up and down, but the one thing that is permanent is you. Luckily you can upgrade yourself! Acquire the right knowledge and skills, and you increase your earning power, and your chances of a happier, healthier, and wealthier future.
In case you think we’re making this up, Warren Buffet, the world’s most successful investor, says his number 1 tip is to invest in yourself. Former US Federal Reserve Chairman Ben Bernanke also says that “education is the best investment.”
You might think that this article is a cheap ploy to get you to spend your tax return on our natural health courses. Well, that would be an excellent choice, but the truth is this: the reason we opened this college was to give you the opportunity to live a happier and healthier life. We encourage you to follow your dream and passion, whatever it might be.
Do what you love, and the money will follow!
Want to learn more about natural medicine?
If you want to learn more about Homeopathy, Switch on Health has several short courses and accredited qualifications that you will love, including Advanced Diplomas in Nutrition, Herbal Medicine, Naturopathy and Homeopathy. Browse the short courses or learn more about their accredited Advanced Diploma programs.