A variety of emotions can be associated with the so-called empty nest that accompanies the leaving of the last child from a family’s home. As a parent in this situation, you will probably feel some sadness. Along with that, you might feel some anxiety about how your children will manage on their own. You might even be anxious about how your own household will manage with your new circumstance. But you can be assured that there is also plenty to be excited about now that the kids are out on their own. How should you react to your new living arrangement with your finances? Read on.
Take a Look at Your Insurance Coverage
Once your kids have graduated college, they are no longer eligible to be covered under your health insurance. Removing your children as dependents from your various insurance, especially car insurance, will help to reduce your premiums. Of course, don’t do anything until you have made sure your kids have insurance of their own.
Re-Work Your Budget
If you are no longer paying college bills, you may find yourself with a little extra cash left from your paycheck. Of course, you may want to do something to celebrate your new kid-free status, but that shouldn’t be the norm. This is your opportunity to contribute the maximum possible to your IRA or other retirement fund. As retirement is likely your next big life step, this could be your last chance to add anything significant. To really make the most out of your situation, really dig into your spending to see what else you might find. Are you paying for a family price on anything that could be reduced to a single or couple price? More money added to the pot.
Don’t Do Anything Rash
Now that there are fewer people living in your house, you might be thinking that it’s time for a smaller place. While there are advantages to an apartment, such as a lower monthly payment, you may need to look a little further ahead. Paying rent does not add to your net worth, since your apartment would not be classified as an asset. And although your kids may have moved out, they might still need a place to stay when they visit. However, if you are able to find a new mortgage that still fits your needs, this could be the right time to take that jump. Take your time and consult your financial advisor.
Make Your Hobby Pay
Without kids home to care for, you may find yourself with more time to do the things you have been waiting to do. Are you a crafter? Start selling your crafts at shows or on Etsy. Are you a golfer? You now have more time to spend on the greens, possibly as an employee. Is yoga your thing? Become certified and be the instructor. Not only will your bank account fatten, but you’ll finally have time to do what you love, making this a more cheerful time for you than many other empty nesters.
Life may seem to have changed when the kids have left. But might not have changed as much as you think. You may need to make some changes to your life. But no matter what happens, you are still a parent. Your children will always need you, and possibly your money, too. Make sure to be ready, and speak with an advisor from the Hopman group today.