Admit it. Securing a house for you and your family is your topmost priority. Therefore, giving full financial attention to your home loan is a must.
Well, it is gratifying once you accomplish repaying your most significant investment. But what happens when it’s all done? What’s your next big step?
In light of your concern, here is a parent’s guide after paying off your mortgage.
Build Home Emergency Fund
Homeowners like you take pride in finally fulfilling their most enormous financial obligation. Paying off your mortgage is like a heavy load removed from your shoulders.
Nevertheless, don’t forget that it doesn’t stop there. Parents need to maintain their homes. Broken pipes and leaky roofs are some of the house troubles to consider.
Avoid the hassle by saving for an emergency home fund. It keeps you ahead of unexpected repair and maintenance expenses. Every month, allocate a portion of your mortgage savings. Then, put it into a high-interest savings account. Although it might be slight initially, it prepares you for the possibility of thousands of costs.
Settle All Credit Cards
A mortgage is famous as the most considerable expense of all. Now that it is off the table, place more funds towards your highest interest rate credit card.
Credit cards take much of your debt list. Therefore, prioritizing the card that charges the most is advantageous. It does not only finish your financial obligation. Instead, it keeps you from paying more interest. Thus, saving more cash than you expect.
Consolidating your credit card debts into your extra budget is a genius move. This way, it will keep your finances afloat from any future trouble.
Pay Off Other Debts
Once you paid off your mortgage, settling all your other debts is the next wise thing to do. Now that you have extra cash, knock out all your dues.
Start checking all your balances to pay. And find out when it is due. Then, allot funds for each debt. Before you know it, all your debts are clear before it incurs any penalty.
It feels rewarding to know that you’re mortgage-free. Nonetheless, being free from loans, car debts, and other bills is genuinely pleasurable. Plus, you’d surely enjoy the feeling of not owing anything to anybody.
Focus On Saving More
Completing your mortgage responsibility allows you to expand more. Aside from the bills and debts to pay, focus on your future.
Putting some money away is a sound strategy. It keeps parents ready for what lies ahead. Think of what you plan to do next.
Do you plan for the whole family to travel?
Do you want to secure a retirement plan?
Or are you preparing to make a large purchase?
Whichever you wish to have, it is more achievable now that the mortgage is out of the budget list.
If you opt for an investment plan, now is the time to do it. Utilize the extra money initially designed for a mortgage.
Set-Up Automatic Saving
Now that you’re more inclined to save, making it work out is your next concern. But, unfortunately, amidst the list of to-do’s and pay, parents tend to forget to transfer funds.
Avoid missing the chance of making it happen. Set an automatic deposit to your savings account each month.
This step is convenient for you and your partner. There’s no need to visit the bank or even lift a finger to do it. Just make sure that you linked the correct account. Also, set the right amount of funds that your payroll can suffice.
Finance Kid’s Education
As a parent, you dream of your kids finishing their studies. Forge it to happen by setting a part of your mortgage budget for it.
The cost of education nowadays is no joke. If you have a toddler, you have to prepare for years before they get a degree. And it all depends on the profession your child wants to be.
Regardless of the chosen education, it should not stop you from helping the kids achieve their goals. So, figure out how much funds you need to finance their future.
Discover New Leisure
Altogether paying off your mortgage is such an impressive financial goal achieved. It is like ticking off your bucket list. And it comes with numerous perks.
On top of your family responsibility, parents have the freedom to do things they want. Of course, giving full attention to the family’s needs is exhausting. But giving in to your leisure activities makes it all worthwhile.
Also, you can now discover a new hobby. Think of what you’ve wanted to do before you got tied up with your mortgage. Sign up with a golf membership. Start tending and expanding your garden. Explore the world outside with your family. Or catch up and enjoy the company with friends.
Whichever you plan to use the extra funds, spend it that will make you savor your time and prioritize money. Just keep in mind to add it to your new expenses or budget.
Celebrate The Achievement
Life after paying off your mortgage is the parent’s big step to move forward. Buying property in Philippines or any other country is not an easy feat, may it be a dmci townhouse or a condominium unit. As the beginning of a new chapter, it calls for a celebration.
Plan what you want to do with your extra money. You can take some time off your work and house responsibilities. Throw a party for your magnificent accomplishment. Enjoy a breathing spell with your family and friends. If you have extra time, plan a trip with your partner. Just make sure someone responsible will take care of the kids.
Don’t feel guilty of pampering yourself, even for a bit. You achieved one of the primary financial goals in life. But, unfortunately, not everyone has a chance to fulfill it as you do. That’s why finally paying off your mortgage deserves a celebration.
Life is more amazing after paying off your mortgage. Parents have more room for their finances. You can now focus on other essential matters that the budget is revised.
Nevertheless, you still have to sit down and discuss it with your significant other. After all, you both worked hard to settle this obligation. It is wise to plan where you want to put the extra cash previously allocated for the mortgage. It makes life more comfortable for you and your family.