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This story is sponsored by FSI Mortgage. Learn more about FSI Mortgage.
Now that you’re in your golden years, you might be thinking of serving an LDS couples mission. However, you may feel you aren't financially ready, either from debt or the desire to build a cushion of cash before leaving on a mission.
Here are four tips to help you get your finances in order, so you can start a new chapter in your life:
1. Pay off and consolidate debts
For many, the biggest obstacle to serving a senior mission is debt. Whether old or new, debt can make it difficult for you to serve the mission you’ve always dreamed of with your spouse.
Take time to budget your finances, and cut back on unnecessary spending. Take the money you save and put it toward debt payments, making sure to pay the highest possible amount to avoid high interest rates. Credit card debt is a problem for many, so avoid buying things on credit, particularly if you don’t need them.
When the holidays (or birthdays) come around, consider gifting each other with money into savings rather than buying expensive gifts. This will help you reassess priorities and put your hard-earned cash toward a valuable and meaningful experience, rather than possessions.
If you have many large debts and feel overwhelmed, consider debt consolidation or other forms of financial help to break free of debt and its deadly interest.
2. Downsize your lifestyle
Perhaps you have a family car too big for running errands, or a house that’s overly large for just you and your spouse. Most empty nesters have a large amount of items, vehicles or space they no longer need. This puts you in a place to benefit financially from downsizing and starting fresh with a simpler and money-saving lifestyle.
If you don’t want to move into a smaller home, consider holding a yard sale. Keep a few sentimental items, but let yourself part with the rest of what you don’t need or use. You’d be surprised what you can earn from what’s in your basement, garage and guest bedrooms.
Turn your profit into a way to pay off your debts and bolster your savings.
3. Rent out your home
If you decide not to downsize, you can rent out one or more rooms in your home. Most senior missionary couples live somewhere else for the duration of their mission, which means the rent money from your home can fund your mission while you’re gone.
Some people find success in turning their home over to a trusted friend or family member. Doing so can put your mind at ease about upkeep and the safety of your possessions while keeping you in good financial straits.
4. Consider a reverse mortgage
Seniors over age 62 often own homes with plenty of equity. If this describes you, you’re in a position to obtain a reverse mortgage or home equity conversion mortgage. This type of loan is geared toward older homeowners and has no monthly payment.
The benefits of a reverse mortgage include a steady flow of income based on several factors, including your home’s value and equity. Borrowers then have money coming in each month to put toward anything they want, such as a mission. Unlike other home equity loans, a reverse mortgage doesn’t require immediate payment.
To learn more about reverse mortgages, visit the FSI Mortgage website.