If you are mortgage free, where does your income go?

[Presentxx]

We will be in this position soon and I’m intrigued as to how others spend/utilise their income when the biggest debt has been cleared? Hope this isn’t too invasive, but its not something I find myself comfortable asking those closest to me.

We inherited our house and moved in earlier this year, so still getting used to having no rent to pay!

Sadly I don’t have a huge amount of newfound money to enjoy because not long after we moved, I started studying and my income took a 30% hit. In the future I’m looking forward to upgrading my car and saving more for holidays.

We diverted it all into our pensions and savings.

Rather than reduce my working hours I want to retire early. I am hoping to retire at 55.

It means we can both work part time and still afford to do everything we want to do.

It's going into savings and pensions.

Savings and pensions
Livery fees for DD’s pony
School fees

Dropped to part time hours. DH went back to college to retrain.

So only one part time income at the moment. So no big spending of any sort. We don't have that much coming in and it goes on bills. We don't save much at the moment.

However even though we're cash poor, not having a mortgage has given us the space to do things like work part time and retrain. Its an utter luxury.

@ElspethFlashman

Dropped to part time hours. DH went back to college to retrain.

So only one part time income at the moment. So no big spending of any sort. We don't have that much coming in and it goes on bills. We don't save much at the moment.

However even though we're cash poor, not having a mortgage has given us the space to do things like work part time and retrain. Its an utter luxury.

Yes, exactly this .

Our mortgage was only a couple of hundred so it hasn’t made a huge amount of difference

We are having a loft conversion next year, plus other home improvements like extensive garden work etc.

We haven't told anyone we are mortgage free as we are young to have no mortgage and i don't want the snide comments.

Everyone is just assuming we are borrowing on our mortgage.

Pensions, stocks and shares ISA's, premium bonds, holidays and two teenagers.

I thought it was better to pay more into a pension when younger rather than divert that money into paying off the mortgage?
I'm in my 30s so won't be mortgage free for a while but I've just upped my AVCs.

Salary sacrifice to pay into pension.

Savings.

Bank of mum and dad. (we are the bank)

This is the most depressing thread I've ever seen. I've still got 25 years on my mortgage😭

I'm mortgage free.

I rent and live in a housing association flat.

I spend what is extra on nice shampoo and good food.

@JalapenoDave

This is the most depressing thread I've ever seen. I've still got 25 years on my mortgage😭

Yes that is depressing. Can you overpay even if just a little to reduce it down?

My mortgage was written off when my DH died at the age of 36, in 1991. It was only a couple of hundred a month, but it helped towards paying a nanny to mind the baby and toddler so I could get back to full time work to support us all.

Most people who took out a mortgage 25 years ago and didn’t add to it won’t have been paying much anyway so It won’t make a huge amount of difference. A lot of houses were only £50k-60k.

@RingtheBells

Most people who took out a mortgage 25 years ago and didn’t add to it won’t have been paying much anyway so It won’t make a huge amount of difference. A lot of houses were only £50k-60k.

We threw all of our disposable of money to overpay our mortgage so the amount saved was reasonably high.

I work less hours and we enjoy better holidays.

Children as it has since I had the first in full time childcare as baby in 1984!!!

So this year and next they cost about £50k a year for the two - law school fees, allowance, rent. I think it will be about 4 years before they are off my hands financially including the sum I am giving each of the 5 children for housing... the end is in sight.
My mortgage at one point (interest only) was £90k a year paid out of income taxed highly but is now zero.

We did become mortgage free when I was 35 actually on our last house as I had set up my own business and did quite well but I decided I wanted a much bigger house and 2 more children so we took on a big loan and had gorgeous twins.

Holidays, home improvements and savings, gym membership then after that stopping work, home improvements and holidays.

@Babyroobs probably...

We have been mortgage free about four years and ours goes into savings and our two daughters, one of whom is about to start uni this september, another who will be starting in two years. We are in Scotland so their tuition is paid for, we are hoping to get them through further education debt free by paying all their living expenses ourselves. The girls also have part time jobs to help out. We have spent a fair bit of money on our property, we live on a smallholding so have been putting up outbuildings and doing the house up to our taste. Other than that, most of our disposable income goes into myself and my daughter's hobby which is riding. We spend a fair amount every month on riding lessons and on competing in the summer. DH loves his cars so will be putting in a garage and buying a sports car just to have fun with next year. Eventually, I would like to go on holiday, we haven't had one since our honeymoon!

Mortgage free nearly 15 years since mid-30's, family income dented somewhat by exH then deciding he wanted out of the marriage.
I work part time.
Put a lot into my pension and savings.
I don't really spend on anything I didn't spend on previously.

Pension
Kids
Cars
Holidays
Hobbies
savings