What would you do with an extra income of $700 per month?
If someone handed you an extra $700 cash, you would be pretty excited, right? Maybe you would splurge a bit; go out for dinner, or buy that new pair of shoes or golf clubs you have been dreaming about?
For many who are empty-nesters, semi-retired or retired, life is all about budgets, and fun extras become rare or non-existent.
Many older Americans do not have enough money saved to comfortably retire and maintain a lifestyle they were accustomed to living.
Here’s the next question: What if someone gave you an extra $700 per month– every single month? That is a game-changer. Imagine the possibilities…
If you have an extra room in your house, finding a compatible housemate typically offers a homeowner an average rent of $700 per month. That is $8,400.00 per year.
This is equivalent to a part-time job, without having to leave your house – plus you have the added benefits of the company, someone to watch the house when you are gone, etc.
Of course, no one has any trouble spending extra money, but here are seven ways you could smartly use that extra rent income:
1) Pay down your mortgage
2) Attend to your health: go to the dentist, get preventive care, etc
3) Invest in making your home “ageing in place” friendly. Use the extra cash to set up your bathroom with grab bars, widen doorways, or install a ramp to the front door. These little things can make a big difference in keeping your home accessible through the years to come.
4) Have some “mad money” for a shopping spree or special meal out with family and friends. It’s amazing how wonderful it feels to treat others.
5) Brighten up a room in your house with a fresh coat of paint or some new pillows.
6) Save all your rent money and go on one big vacation! Time to hit that bucket list! Your rental income could subsidize a wonderful trip to faraway fantasy trips.
7) Become the philanthropist you always wanted to be. Find a good cause that’s dear to your heart, and share some of your earnings with your favourite charity. It just feels great to pay it forward!
This article originally appeared here.