A Christmas bonus, a tax refund, or maybe a few hundred left in the bank \u2014 it\u2019s easy to find yourself with a bit of spare cash around this time of year. The question is, what should you actually do with it? While it\u2019s tempting to spend, experts say there are smarter ways to make your money work harder in 2026.<\/p>\n
The first step is to decide what matters most to you \u2014 paying off debt, investing for the future, or boosting your retirement savings. According to finance experts, that choice often depends on your age, your income, and how comfortable you are with risk, reports SBS News<\/a>.<\/p>\n If you\u2019re juggling a credit card balance or personal loan, start there. High-interest debt can quietly eat into your earnings faster than any investment can grow. Clearing it first can feel less exciting than buying shares, but it\u2019s the most immediate financial win you can get.<\/p>\n Once that\u2019s under control, it\u2019s time to think longer term. Investing, super contributions, or extra mortgage payments can all stretch your dollars further \u2014 but each comes with its own set of pros and cons.<\/p>\n Investing in the stock market is one of the most popular ways to build wealth, but it\u2019s also one of the most unpredictable. Markets move fast, and emotions can make people jump in and out at the wrong times. Experts say diversification is the secret \u2014 spreading money across multiple companies or industries instead of betting everything on one stock.<\/p>\n For beginners, exchange-traded funds (ETFs) are a simple entry point. They offer exposure to a mix of shares, helping balance out risk. Still, it\u2019s worth remembering that any money invested in stocks should be money you won\u2019t need soon. Short-term market swings can be rough, and patience is key.<\/p>\n If you\u2019re thinking decades ahead, superannuation remains one of the most tax-friendly options available. Contributions and earnings inside super are taxed at only 15%, which is lower than most people\u2019s income tax rate.<\/p>\n Putting even a small extra amount into your fund each year can make a big difference by the time you retire, thanks to compounding returns. The catch, of course, is that your super is locked away until retirement \u2014 so this strategy suits people who can afford to wait.<\/p>\nInvesting in Stocks<\/h2>\n
Building Super for the Long Haul<\/h2>\n
Paying Down Your Mortgage<\/h2>\n