Mortgage Is Zero, So Now It's Time To Invest

I’m a single 43-year-old earning $60,000pa and have $38,000 left on my mortgage. I have $40,000 available in my redraw account, $115,000 in super but no investments. I have been focusing on paying off my mortgage but now feel I should be investing to create some income for my future. I have been thinking about buying an investment property but know little about investing in property or shares. What would you suggest?

- Paul Clitheroe

Congratulations Melissa – a great job in getting your mortgage down to zero. In fact, with a $38,000 mortgage and $40,000 in your redraw account you are one of the few people I know with a positive mortgage. The bank owes you! You have also made a very good start to a really good super balance for when you stop work. I really don’t think I need to ask if you do a budget. Clearly you manage your cash flow carefully to have achieved this outcome.

Sure, you may have won the lottery but I doubt it! I think that, like me, you would be fully aware that a big lottery win is about 12 million to 1. Mind you, entering a lottery is a brilliant way to donate extra tax dollars to the government. However, your words suggest someone who runs their cash flow really well. That, of course, is the key to success with money. It is quite aggravatingly simple but too few of us do it. Just spend less than you earn and apply the surplus to owning decent assets such as property and shares.