Congratulations! You’ve done it.

The mortgage that seemed endless has finally been paid off. This is definitely cause for celebration. You’re probably feeling relief with extra money in your bank account every month and one less financial pressure.

Although you’ve defeated the mortgage, it’s time to consider what comes next. Where can you effectively put this extra money to ensure security, less debt, and peace of mind for your future? This is prime time to think smart and plan ahead. Seeking help from a financial advisor could give you a better understanding of your options. Here are a few paths you could venture down in your financial journey.

Debt repayment

It goes without saying that credit cards, store credit, loans and other big debts are a burden. They certainly fulfill a function, but it’s very easy for credit card spending to slide out of control. Even when used responsibly, credit card debts can lead to resentment and worry.

Now you’ve paid off your mortgage, you might use this opportunity to clear some of these debts. Reducing or eliminating lengthy monthly statements can have a transformative effect on your financial well-being.

As an example, if you’ve got a debt of £1,000 on a credit card with an interest rate of 18%, you’re paying an additional £180 extra back as a result of your debt. By clearing this debt, you are also eliminating interest costs. Making the money tangible in your head by imagining what this £180 could be better spent on should persuade you to pay the debt off sooner rather than later.

Life insurance

Life insurance is a safety net designed to give you the reassurance that your loved ones are looked after financially in the event of your death. This reassurance is a solid investment, especially if you have children, a partner, or other family members who rely on your income.

Life insurance comes in a range of covers, and can be quite affordable, sometimes just a few pennies a day. There are different levels of cover depending on your personal circumstances. The average for a non-smoker in their fifties who has taken out a £100,000 policy over ten years is just £1 per day.

Talk to your financial advisor about the kind of coverage you should consider taking out.

Pension

When you think of retirement, you’re probably picturing holidays in the sun, taking up a hobby, or long drives with family in the countryside. If you’re looking forward to the day when you can wave goodbye to the working world, make sure your future is secure by paying into a pension.

By the time you pay off your mortgage, you will probably already have a pension scheme. With the extra money you now have, you may be in a strong position to increase your monthly payments into your pension. Some companies will match what you pay in and you’ll also receive tax relief from the government, making this an excellent way of maximising on your new disposable income for the most effect.

Emergency fund

With the extra money, it’s probably quite tempting to start planning holidays, buying new gadgets or upgrading your car. But ask yourself if you have enough emergency funds in your possession? You may have paid off the mortgage, but a house is an expensive asset with unpredictable maintenance issues.

If your boiler were to pack in, it can cost close to £1,000 to replace. If your roof caved in or the foundations of your home start to give, do you have an adequate amount of money put aside? If something were to go wrong in your home, your car, or any other aspect of your life, you need to make sure you have the finances available to amend the situation.

There’s a lot to think about when it comes to your financial journey. Paying off your mortgage is a personal victory, but make sure you’re on the right path by seeking help from a financial advisor.

At Expert Wealth Management we offer personal financial advisory services tailored to suit each and every one of our clients. Whatever your financial priorities, Expert Wealth Management are here to help.

For personalised financial advice, call Expert Wealth Management today on 01993 772467 or contact us here.