What do you do when you’re debt free with an Emergency fund set aside and your budget is pretty much as healthy as it’s ever going to?
My initial thoughts were to start throwing everything I have to my mortgage so that we can get that paid off as quickly as possible and to a certain degree, I do still want to do that.
I like the idea that my mortgage will be paid off in full before I hit 50 and that we’ll then have the security of owning our home outright AND having the extra money each month.
But I’ve been wondering lately if we’re doing the right thing – is it the right thing for us to focus solely on paying off the mortgage or should we be focusing at least a little of our spare cash each month on something else?
I’m toying with the idea of setting up an ISA that I can’t get at for a long time – I’m thinking a five-year minimum term although Mr Frugal thinks we should look at something with a two year term to see how we go with it. 😉
We also disagree on the level of risk that we’re willing to take and the type of ISA we take out – he’s all for taking a low risk, low return ISA out with our bank and would happily do that without looking around to see what other products are on the market.
I feel a bit differently though and am willing to invest is something less traditional to get a higher return. Something like the Just ISA sounds like what I’m looking for as it’s got a fixed rate of interest per year of 8%. I love the idea that JUST invests in litigation funding to support people who need legal redress against banks, corporations and professional advisers.
The cost of litigation and legal action these days can be extremely expensive so a helping hand to help David beat Goliath in court feels like a good thing to do and the fact that I get a good return on my investment makes it even more appealing.
I get that the risk factor is higher but the return is higher too and I think that’s a payoff that I could be willing to make because I’m not putting all my eggs in one basket.
Up until a couple of weeks ago, I had no idea that there were so many options out there for investing for normal people like me who don’t have a huge amount to invest as a lump sum or as a monthly basis but still want to make what money I have work as hard as it can.
Now I know that there are options out there that will give me such a good return, I need to work out if I really want to focus fully on my mortgage overpayments or if I want to invest alongside my overpayments.
It’s a dilemma, a nice one to have but still a dilemma that I’m going to ponder on until the New Year I think.
Don’t miss out on future posts like this – receive updates directly to your inbox by email by adding your email address here and hitting subscribe. You can also follow me on Twitter, BlogLovin or Networked Blogs and I’d love to see you over on my Facebook page and on Instagram. You can find out more about me here.