Paying less than 4% mortgage rate? Are you using your extra savings wisely?

OK, so, it looks like your mortgage is less than 4%.

I’m sure you know how lucky you are when -nowadays- mortgage interests are at about 8%, currently…

So, you are saving a lot of money by paying a low monthly mortgage.

But what are you doing with the surplus? Your spare money?

That money is Unused Free Cash Flow?

You know it, right?

Of course, you could use those extra savings to buy more clothing, go to the restaurant or go on vacations…

But that way of using that available capital is not very rewarding.

It’s not a great investment

You should use that unallocated money to make more money.

Because everybody knows that to make money, you need money.

And you have it handy…

Like your private Fed with a funds reserve

Since your mortgage payment is so low, you definitively have much more money to spare, and It would be like using a stack of free funds to boost your residual income…

Let’s face it, to create or expand a business, invest in opportunities, or benefit from financial ventures, you usually need an initial amount of money. This capital can be used for various purposes, such as starting a business, buying assets, investing in stocks or real estate, or pursuing education and skills development.

Essentially, the concept means that having some financial resources is a common starting point for achieving further financial success or profitability.

Here are some ideas about what you can do with your unallocated funds:

?? Take advantage of your low mortgage to manage monthly payments, by treating your surplus cash as additional income and make it work for you.

?? Remember how investments are a valuable part of your retirement plan, ensuring a comfortable retirement lifestyle for your golden years.

?? Consider the concept of opportunity cost, or how your surplus money will work harder for you as an investment for discretionary income rather than simply paying down a low-rate mortgage.

??? Build Long-Term Wealth Building especially in real estate, which always appreciate over time.

?? Consider the potential for financial independence and the ability to retire earlier thanks to a well-managed investment portfolio.

?? Achieve Financial Goals: think about specific financial goals, such as buying a second home, funding a child's education, or traveling more, and see how investments through your uncommitted funds can help achieve these goals.

?? Take advantage of the potential of real estate investments, such as ADUs, rental properties or real estate investment trusts (REITs), as a way to generate passive income.

?? Use that free cashflow generated by your low monthly mortgage payment by diversifying your portfolio both within Real Estate and beyond real estate, reducing risk and potentially increasing returns.

?? Take advantage of Compounding Returns: by understanding how even small, consistent investments can grow significantly bigger over time.

?? Realize how investments can provide an added layer of financial security, giving you peace of mind for unexpected expenses or retirement.

?? Be wary of Tax Benefits or advantages that may come with certain investments, like tax breaks for real estate investors or opportunities to reduce your tax liability.

?? Remember that not all investments are locked in for the long term; some offer liquidity and flexibility to access funds when needed.

?? Be careful of Risk Mitigation: remember how a diversified investment portfolio will mitigate financial risks, providing a safety net if the real estate market experiences fluctuations.

?? Ask advice and guidance from a mortgage expert or financial advisors who can help tailor an investment strategy to your specific goals and risk tolerance.

?? Start Small: If you are hesitant, start with a small investment and gradually increase it, as you become more comfortable.

?? In today's high-interest rate environment, investments have the potential to offer better returns than simply paying down a low mortgage. Tip: NEVER pay down your mortgage.

?? Remember that having money is not the goal, the goal is making your money flow faster.

Remember to personalize your approach, understand your unique financial circumstances and goals, and ask for support and guidance throughout the investment process.

Wants to know more? Leave me a comment below or DM me, Xavier Lannes