I won $250,000 on a Gameshow

Hi!

Recently, I was lucky enough to win $250,000 on a gameshow! Since winning, I have paid off a loan I owed my dad and and put the rest into our mortgage -- the house is valued at $320,000. I have just bought a new car and paid for it out of my home loan. The balance is now $95,000. We intend to start a family inside the next 12 months and are scouting for investment properties (we earn $110,000 combined). I am very excited but also confused about whether buying another property is wise at this point in our lives.

Mike

Hi Mike

Congratulations for winning Family Feud and killing Channel Ten (just kidding). If I were in your shoes, and planning a family within 12 months, I’d focus on three things:  First, boost your pre-tax super contributions to 15 per cent of your gross income.  Second, save up three months of living expenses in a Mojo account. Third, take a baseball bat to your mortgage. If you can be debt free by the time your first kid goes to school, you’ll have dramatically less Family Feuds.

Scott