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Managing your money now that your mortgage is paid off
Congrats, you’ve finally paid off your mortgage! That’s an achievement you can be proud of, especially since so many others are still working towards that goal. But, even though there’s cause for celebration, it’s still important to keep an eye on your finances so that you can continue to meet your financial goals. Check out some useful tips below for managing your money now that your mortgage is paid off.
Where to put your money
Pay off your credit cards
Now that one of your biggest expenses is off the table, you might want to think about putting more money towards any high-interest-rate debt you might owe. While paying down or paying off debt may not be the most exciting way to spend the extra money that's now in your budget, it can help you handle some of your interest charges. You can also look into consolidating your debt by using tools like our TD Debt Consolidation Loan Calculator.
Save more money than before
Putting some money away for the future is another sound strategy, now that you’ve paid off your mortgage. Think about diverting more money towards your savings account to prepare for what's ahead — retirement, a vacation or a large purchase. If you're thinking about investing the extra money you now have, you can use our Compound Interest Calculator to help you decide how much to invest over a specific period of time.
Make saving automatic
Saving is a great concept and a worthy pursuit, but it can be easy to forget to transfer money into your savings account each month. Wouldn’t it be great if you could automatically deposit a set amount of money into your savings account without having to lift a finger? Well, luckily you can use any of these Pre-Authorized Transfer tools to help automate the way you save. Plus, you can make changes at any time for free.
Invest in education
If you have kids or grandkids, another responsible financial decision could be to help them with the cost of their education. Use our Education Savings Calculator to help you figure out how much money you may want to invest in their future. It’s a worthy goal to pursue for your loved ones, especially now that your mortgage is paid off.
Pursue a hobby you’ve always wanted to try
Considering you’ve achieved the impressive financial goal of having your mortgage paid off, you may now have more freedom to do the things you want. This could be the perfect time to pursue that hobby you've always wanted to, whether it's golfing, tending to your garden or just enjoying the company of friends. However you choose to spend your time and money, just remember to add your new expenses to your personal budget.
Don’t forget to celebrate
Paying off your mortgage is a big step and may be the beginning of a new chapter in your life. If you can, take some time to celebrate your accomplishments by throwing a “My mortgage is paid off” party, enjoying some time off or going on a trip with your significant other. Pamper yourself a little bit. You likely have achieved one of your major financial goals in paying off your mortgage. You’ve certainly earned it.
Life after your mortgage is paid off
Being sensible with your money is probably what helped you finally pay off your mortgage, and it’s what can help ensure financial confidence down the road too. Whether you pay off high-interest-rate debt or help pay for a loved one’s education, put some thought into how your financial goals will change now that your mortgage is paid off. Having a solid strategy is essential to helping you save money and maintain your financial health.