I have a home mortgage and I figure I can set aside an extra $1000 a month. What should I do with that money? Put in onto the mortgage or look at other investment methods?
Thanks for the question Piper.
You can work towards paying off your mortgage early – but then you have your money locked up in a rich asset but does this mean you have neglected you other needs? And remember – your home does not earn you any income!
Have you built up a cash reserve for emergencies? Have you got a long term wealth creation plan outside of your home?
When you consider this wealth creation strategy you need to spread the wealth over different asset categories – shares being the one that you need to consider as you have all your eggs in the property basket at the moment.
Also, depending on your circumstances – marital status, age and dependent children – you should also be looking to grow your superannuation – there are great tax benefits to be had in doing that, but not at the expense of other more pressing needs.
Copyright © 2010 - 2017 DebtConsolidation.com.au. 100% Aussie owned and operated.