What do you do when you have paid off your mortgage?

moneysavy

I,m just interested to know what everyone does with the payment that they would of given to the bank once they are mortgage free?

elantan

I havnt paid off my mortgage yet but the plan is to divide the money between fun things like holidays secondly home improvements and new cars and finally early retirement and financial independence ... so three categories but different things in each

moneysavy

Hi thanks for the reply initially I was going to accumulate the money in a bank account but now I've ear marked some of the money to do as you say increase retirement fund, pay into a life insurance policy that covers the kids should I die and also gives them a monthly income to live off and a lump sum payment. Home improvements also like you say to increase the value of my home with a view to adding value to it so I can possibly upsize should it take my fancy. I was surprised to learn that if you start saving up a pension for a child at a very early age then this can accumulate to millions of pounds at retirement. I could do with looking into if should the child die (god forbid) if the lump sum payment would then be paid back to you. Maybe use some of the money for a health care plan for the family too. Anymore suggestions welcome xxx

Thrugelmir

What's your aim? Retire early. Help your kids. Buy a bigger house. Take up and expensive pastime.

Personally I would secure my financial future. With a combination of short term and long term saving. As removes the potential stress as one grows older. You never know what tomorrow may hold.

kitjos

Interesting topic. Im sure we all have our plans or we wouldn't be here

Me and husband will hopefully be mortgage free by our early/mid 30's at the rate we are overpaying now. Our two kids will be 7yo & 9yo. We're mainly doing all this (OP) as I want the financial security that our house is our home and no bank can take it away, also while we're young and working hard we can manage the OP's, having all that money spare at the end of the month would be fantastic.

I guess initially we will hammer away at our savings so we have a good amount. Then the material items start. We both want new cars (not nec new, but a newer reg than what weve got, nicer model like Audi for eg).

Next is holidays. We LOVE Tokyo and not been back for few years due to having kids, would love to go again. Also other holidays like Walt Disney world Orlando.

Its the not holding back im looking forward too, I saw a beautiful necklace in the jewellers yesterday, not a bad price (£170) but didn't get it as it's not functional right now as that money could be an OP.

Basically, enjoy the finer things in life and enjoy it with our kids xxx

jfdi

Ours was cleared early when I was about 40.

Firstly we saved up and got 2 new cars.

Had a couple of decent holidays, and then it went on topping up son's living costs whilst he was at uni (and yes he did work too, but Surrey isn't cheap!)

And then OH was made redundant at same time he had major surgery and was also diagnosed with a chronic neurological condition.

Since then he's never worked full time and his income has greatly reduced, thankfully I still work and we've some savings.

We're quite happy and get by easily, but you just never know what's round the corner. Save some, spend some - but make sure you still have a life!