Mortgage free next steps?

Hornetmad

So I’ve been struggling to answer my own question for some time and thought it would be simple to solve myself. But have realised I need some in put to get the best idea of what to do next.

I’m 32yr old male. I’m managed to buy my current house mortgage free. This is the first time purchasing where I haven’t required a mortgage. To get to this point I have moved 5 times starting at 21 years old. I’ve managed to buy and renovate each place building my pot up and buying more expensive each time with maximum mortgage borrowing based on income of £17500. My current house is now £250000. I’ve made some great profits and know it’s a major achievement and hard work getting here. It’s been done as an individual living alone.

The problem I have is what on earth do I do now? I Didn’t expect to get here so soon. So I have never had to think what next. I’m not looking for well done or to brag about it. As no one my own age is here I don’t have the luxury of asking advise from friends.

What would you do now?

I have a work place pension and have only ever paid the minimum into it as was needing every penny to pay mortgage each month and to allow me to borrow more based on outgoings with the mortgage lending.

What are my options? I great with a hammer but I can’t nail this question myself.

Thanks for any advice.

Cornish_mum

Congratulations on this amazing achievement you should be really proud of yourself. If I were you I’d build up a nice emergency fund of 6 months expenses, then look to increase your pension contributions to around 15%. (I think the rule is the contribution should be half your age when you start contributing).

bexster1975

Many congratulations! It took me eight years longer than you
:beer:

The great news is, the answer to your question? Anything you like....

It depends. Do you want to stay for the foreseeable future in your current place? Dies it need any work?/improvement/extension?

I agree with Cornish mum re: pension, just check it works for you. I'd encourage investing in m own pot for a rainy day, so you aren't restricted on when you use it.

Do you like to travel? Or would you. On your wage you have done incredibly well. Do you like your job? Would you consider working for yourself? Would you like to? Paying off your major bill means you are free to earn differently/ flexibly.

Don't let it bother you too much. Maybe just enjoy it for a few months and see what opportunities take your fancy.


Best of luck

Bexster

beanielou

Awesome
An emmergency fund would be good.
Then you could think about a pension.

cjdew

Well done!

Build up an emergency fund
If you don't like your job you are free to basically do something different now,!
Maybe look at buying some buy to let's? Income and pension option there. Or even completely random but I know someone who was "free" (!) Who took a part time job they love and did holiday rental on the side once mortgage free, but that's because they wanted an investment and they love meeting new people so it ticked their boxes.

jaydeejay

I would suggest do lots of reading and research on financial independance. You are in a really strong position to be very flexible and have lots of options for the future. Look on the various boards and threads on here Pensions and also Savings and investments, also monevator website then onto others that hit the spot from there.
Well done on what you have achieved.
JDJ

jaydeejay

Just remembered this and it might inspire you
https://www.msziyou.com/uk-fire-bloggers-directory-2019/


JDJ

Uthikoloshe

Index funds for spare cash. You could continue doing up houses but that will just generate ever more cash which you still wont know what to do with. So until you have a plan, go find out what a Vanguard Life Strategy fund is and that wont be a bad plan. Assuming things carry on as they have you could retire early. Or you could loose everything, but if that happens then we must have been invaded by the Vikings again.

enthusiasticsaver

Well done on being mortgage free at such a young age.

Financial independence FIRE means low outgoings so no mortgage or debt and sufficient income from an independent source so either investments, self employment in some cases or pension. I would address the income next and build yourself a solid financial base. That means maximising your pension contributions, build up an emergency cash reserve and start investing for the future. Read up on passive investing, start small as you did with the houses and build up gradually.

Hornetmad

Thanks everyone for the reply’s. Sorry for my late reply I didn’t get an email to say I had reply’s.

To answer some question my job is very basic but I LOVE my job minimum wage almost but the nicest job in the word rewarding I many ways. I’d even take a pay cut to keep working their(don’t tell the boss)

My current house was my actual aim something I wanted to be in and completely renovated throughout. My biggest out going is just council tax.

I had in the past thought about being self employed handyman of sorts because I’m dbs checked and would prefer to aim towards the older generation of clients to ensure they are not ripped off for being older and possibly vulnerable to some rogues. That’s only if at anytime my job changes.

Regarding the pension I’m in a work place pension very basic setup. Il look into seeing what my employer will contribute to match anything extra I put in.

Investment funds are okay but I’ve learnt bricks and mortar don’t tend to let me down specially when buying wrecks and doing them up I’d almost say I’m either break even if market drops or still profit.

I would like to buy another place sometime but it’s the taxes on buying and taxes on profits I worry about.

Travelling is something I’d like to do but not till I’ve found someone to join me on the adventure.

How risky would self employed be regarding generating business and the tax man?

Thanks everyone for your reply’s

bexster1975

Hi hornetmad

As to how risky gaining clients is, if dip a part time toe in and see. My guess is the only risk will be too much work! The tax man stuff can be sim, or you can pay an accountant!

Good luck with whatever you decide to do. Tax free stocks and shares ISA would be my next stop.

Bexster