Whether it’s a mortgage or another large loan, paying off a substantial amount of borrowed money can be very liberating. Now that you’ve freed up a lot of extra cash from your monthly budget, you may be wondering what you can do with that money. If you need some ideas, consider the following:
Pay off remaining debts
If you have other outstanding debts, use that extra cash to eliminate them once and for all. Imagine how nice it would be to be completely free of debt! If some of your other loans are also large, it may take a while to eliminate them, but making bigger monthly payments is the best way to pay them off faster. If you could some extra help and you’re receiving long-term payments from an annuity, contact Peachtree Financial Solutions. We can send you your money sooner and you can use that extra cash to pay down debts.
Having extra money each month doesn’t necessarily mean you have to spend it. If you don’t have other financial issues that you need to address, why not just save it? Whether you have already have money in savings, or your account is empty after paying off that large loan, you can simply take that extra money you’re saving each month and put it directly into an interest-bearing savings account. Imagine how quickly you can save up money for a rainy day, or to accomplish another financial goal.
If you paid off your mortgage and now own a home free and clear, you may be well on your way to retiring sooner than you initially planned. Consider putting a financial plan and budget into action that can allow you to retire sooner. If you don’t want to retire sooner, you may want to save that money for when the time does come. For example, you may want to consider putting some or all of that extra cash into your 401(k).
Pay for college
If you’ve always wanted to go to college, but money has been an issue, maybe now is the time to enroll. If you already have a college degree, consider advancing your education even more by pursuing a higher level degree. If you have any children, you could also use the extra cash towards their college education.
Take a vacation
You’ve paid off a large loan—it’s okay to splurge a little bit and celebrate. Why not take a little bit of that extra money and treat yourself to a relaxing vacation?
Invest in property
If you’ve eliminated a huge loan, consider using that extra cash towards a down payment for a home. If you already are a homeowner and the large loan you just paid off was your mortgage, consider buying an investment property if you can handle it financially. Whether you want to buy and resell a home in an area where the real estate market is booming, or you’re thinking about purchasing property that you can rent out year-round or as a vacation home, purchasing a second property can potentially be a great investment.
Does your home need some updating? Whether it’s your entire home or even just one room, consider using that extra cash to tackle a home renovation project that was always unaffordable in the past. The right remodeling projects can also help to increase the value of your home.
Do you need extra cash to make a large purchase or to take care of monthly expenses? Peachtree Financial Solutions may be able to help if you’re receiving long-term payments from an annuity or structured settlement. We can provide you with your money sooner by purchasing some or all of your future payments. Contact us today to learn more and to receive your free quote!
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.