5 Smart Ways to Use Your Refi Savings
You did it. Congratulations on your refinance! Before you get used to a lower monthly payment, why not leverage your savings by making another wise decision?
5 Ways to Use Your Refi Savings
There are many things you can do to maximize the savings you’ll begin to see from your refinance. Below are a few options for putting your new-found cash to good use:
- Build your emergency cash reserve. If your income is interrupted or if a need arises, your emergency fund lets you avoid interest costs from borrowing or tax consequences from cashing out investments.
- Pay down high rate debt. Paying off high rate credit cards or other debts will help free up your cash flow so you can invest it for growth.
- Invest, invest, invest. Max out your 401K contribution. Even a partial match from your employer yields an amazing, instant rate of return. Got kids? Start or ramp up a college savings plan. Tuition costs are rising faster than inflation. Invest now to beat the trend.
- Make sure you are protected. Do you have sufficient life, disability, and property insurance? Doing everything else right matters little if tragedy strikes and you lose it all due to lack of coverage. Why not set up a review with your insurance pro today? Call if you need a referral to someone who can help.
- Pay off your loan faster. This is not always the best thing to do with your cash, but for some, peace of mind has the best rate of return.
One More Thing to Consider
How about buying your vacation or retirement home today?
Subsidize your payments by renting it out when you aren’t there. Then, when you do retire, you will have already built memories in your new home, and you will be well on your way to paying it off. Plus, when you sell your main residence later, the proceeds can fund living expenses.
This is not for everyone, but it may make sense for some.
Jacob Crowder, Branch Manager
Columbia, SC
I grew up and now raise my family in Columbia, South Carolina. When I’m not at work, you can find me at Shandon Baptist Church, Spring Valley Country Club, or Lake Wateree. Whether in the woods, in the water, or on the fairways, I don’t let the grass grow under my feet.