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If there is a good chance you will receive a tax refund this year or through being thrifty you have accumulated some extra cash in your everyday account, try to contain the temptation to splurge or celebrate; instead make it work harder for you. Here are some places you can stash some extra cash that will pay off in the long run.

• Reduce your debts. As boring as it might sound, this is the best way to earn more on your extra cash. Focus on any high-interest loans such as credit cards and personal loans you have. While you’re at it, set up additional monthly payments towards these debts – even a few extra dollars each month will put more back in your pocket.

• Special savings. Do you have a special goal such as an overseas holiday or wedding? Use your extra cash to open a separate bank account that earns higher interest and set up a monthly automatic transfer from your everyday account. It will quietly grow behind the scenes and be ready for you when you need it.

• Invest it. Use your lump sum to set up a managed investment then make regular contributions to take advantage of dollar-cost averaging. If you’re yet to retire and haven’t already taken control of your superannuation, this might be an even better option for you as it is far more tax-effective. Talk to us for further guidance.

• Share it around. You don’t have to be wealthy to be a philanthropist. What is your favourite charity? Or share it between a few needy organisations of your choice. It will not only make you feel good, but you can claim your gift as a tax deduction. You can find more information about planned and tax-effective giving at www.philanthropy.org.au.

Each of these ideas will give you back far more than spending your extra cash on a whim.