For once in our lives...we've come into cash!!! £30,000!! AIBU to ask WWYD?

(218 Posts)
Stripedmum Sat 24-Aug-13 12:07:54

Well it's only gone and happened - we have money! Yippee!

We are now thinking of extending. What would you do with the cash?

Oriunda Mon 09-Sep-13 09:00:45

Moderately makes good point .... How old are they? If getting on in years and there's a chance they may not survive 7 years, they would be better off gifting 3k each (they are a couple?) to you this year, putting it into a fixed rate 1-2yr bond, then doing the same next year. Other suggestion would be to save whole amount in a fixed rate a/c in your names now. Lovely gift, but it's not yours until the funds are in an a/c in your names.

Oriunda Mon 09-Sep-13 08:56:18

If you put money into pension pot, do it in a tax advantageous way via a SIPP for eg whereby you only pay 80% of the total and the government puts in the remaining 20%. So you pay in 8k and the govt puts in 2k (assuming you are basic rate tax payer).

ModeratelyObvious Mon 09-Sep-13 08:51:41

You may want them to gift you both the gift aid limit in this tax year (£3k I think) and put it somewhere inaccessible.

Oriunda Mon 09-Sep-13 08:46:54

Pay off whatever you are paying highest rate of interest on (prob loan). Then pay down 10k off mortgage. Save 10k .... Either fixed rate or stick in into a stocks/shares isa if you want potential higher returns and are happy with more risk. There are currently no high interest rate savings accounts over 2% so with a 10yr outlook you could consider equity. Remainder on extension.

ChippingInNeedsSleepAndCoffee Mon 09-Sep-13 00:18:45

It sounds like a good decision smile

In the meantime you can enjoy 'spending it' 200 times over grin

stopprocrastinating Sun 08-Sep-13 15:44:24

Having experienced a redundancy, and been terrifically grateful to rainy day money and family help, I think you are doing the right thing.

Stripedmum Sun 08-Sep-13 14:13:35

Hello everyone. I thought people may be interested to know what we've decided to do with our lovely pot of money: nothing!

The gift givers are keeping hold of it for about a year until we decide what we really want as we don't 'need' anything right now and are happy. The thinking is though that we will then decide if if it's a good time just to pay it off the mortgage.

Feels good to be sensible for a change.

Hope you all land a pot of gold soon.

Stripedmum Tue 27-Aug-13 07:10:31

Thank you Bewitched! The kind wishes of everyone has been lovely.

BewitchedBotheredandBewildered Mon 26-Aug-13 22:06:15

Stoic lovely to see you on form smile
xxx

BewitchedBotheredandBewildered Mon 26-Aug-13 22:04:25

Stripedmum, a fantastic opportunity for you all, congratulations!

Some of the best news is that you haven't actually got your mitts on this money yet! The givers are not only generous but also very, very wise.

I think you should read this thread through very calmly and make notes. And research everything carefully, as the gorgeous Stoic said, (in among the rest of the sparks and rockets!) this is a good opportunity to learn how to not be shite with money.

It really isn't a huge amount but it could make a big difference to your lives for a long time to come. So plan really carefully.

The only idea i will throw in that I don't think any one has suggested is that, if you need more space, now or in a couple of years, I think some of the stand-alone garden rooms are cheaper than an extension.
Yet more for you to research!
Have fun planning.
And don't have rows about it!

Congrats op, really happy for you smile wine wine wine

I'll echo what other posters have said, that you've been given great advice, so no point in me saying the same.

Ooh I've had time to think and with dh and I, it would be:

£15,000 towards the pension pot, via high interest accounts/premium bonds isas etc

£10,000 on home improvements.

£3000 on a holiday, aaaaand...

£2000: £1000 each for dh and I, to treat ourselves.

BlehPukeVomit Mon 26-Aug-13 20:42:43

Isn't this a nice helpful thread. smile. I think the OP has been given lots of good advice.

Stripedmum Mon 26-Aug-13 20:41:18

That's lovely Seasick. Perhaps we should be thinking more about DCs than ourselves too.

SeaSickSal Mon 26-Aug-13 20:39:12

If I had £30k I would use it to buy into a shared ownership scheme hopefully.

Anything left over would be for my son.

I stand to inherit around £75k when a relative dies and she is in her mid 80s now.

I won't be able to afford a house outright with it and might struggle getting a mortgage even with that as a deposit as I only work part time. So hopefully then I will be able to get into shared ownership and put at least £30k away for my son so when he is older he will be able to by his own house, I don't want him to be unable to do it like I am.

Stripedmum Mon 26-Aug-13 20:37:58

Oh God - really should have read that post through. Apologies.

Stripedmum Mon 26-Aug-13 20:36:53

* aren't banned

Stripedmum Mon 26-Aug-13 20:36:24

Sounds like a good plan! Now just need to convince DH. Treats are banned but I just don't think it'd be doing the right thing - and tbh it would be treat enough to have exciting things fine to the house. Maybe some more premium binds for DS and start an account for new DD.

Yes we grew up in a traditional semi and it was a lot bigger than this. Huge garden too. I'm always drawn to them as they're so solid and just lovely family homes. Quite right re. shoehomes and their 'tricks' if putting no furniture in the rooms. Have also seen so called 'detached' houses with literally one INCH between them! You can't even get a person between them!

sarahtigh Mon 26-Aug-13 20:25:01

so maybe new plan

1. 5k as emergency fund
2. 3-5k refiguring downstairs it will cost more than 2K as will probably need reinforced steel joist where you knock wall down
3. £500 decent lockable shed to put stuff presently in garage no point in good lock if a swift kick with a boot would break door
4. £500-£1500 treats if donors happy with this
5. 17-20K reducing mortgage
6. £500 reorganising and buying storage for house think floor to ceiling so you maximise floor space

unfortunately modern houses have been getting smaller ( now almost smallest in europe technically more rooms but still smaller) with less storage space

I think some of these 4 beds like yors are not truly 4 beds as you can not get bed wardrobe and chest of drawers in each room, I've seen show homes like this beautiful double bed nice bedside tables lovely en-suite shower but it's only on looking second time you notice there was no wardrobe at all not free-standing not built in because if you put one in it would not be possible to walk around bed; as you said traditional 1930's semis have more space and probably 3 bed victorian terrace too but that would have no garage or parking

Stripedmum Mon 26-Aug-13 20:09:36

Ha ha! We definitely need a 'money organisation' course! We have been doing a LOT better though since DCs came along.

Yes integral garage. Yes more space up than down, which is where we need more. I looked at a house today and it really made me appreciate what we already have though. I don't think I could go through the stress of moving with two young DCs - and although we don't live in by any means an exclusive area it's nice enough and safe. Lots of families.

I'm being swayed to pay off some mortgage now and maybe 2k reconfiguring like you say Sarah. Knocking down kitchen walk to make it a lovely kitchen/diner. Also fancy making garage into a kind of games room. Not a proper conversion that would need planning permission - just a clear space with a bit if Lino down and a ping pong table. And maybe a door through from the kitchen into it. So we're getting the feel of an extension but not actually extending (and eating up precious garden).

I do realise this thread us swiftly becoming a very tedious me talking about my not-so-wondrous living arrangements. I apologise before I get flamed! How indulgent grin

sarahtigh Mon 26-Aug-13 19:40:21

is it the type of 4 bed that is 2 singles and 2 doubles when at least 1 bedroom is over garage so the square footage of bedroom space is much greater than living space, 4 beds is plenty with 2 children buy maybe you just lack living space I reckon for comfortable living you need 2 reception rooms plus decent kitchen or the equivalent of if open plan I do not think unless you have to a kitchen diner with 1 living room is enough space if you also need space for home office and the kitchen dinner is really not big enough to have a table seating six

can you reconfigure your existing space to make it work better, 2 DC's have 2 smallest rooms to sleep, you have largest the middle room becomes playroom with proviso that it can become guest bedroom with decent blow up bed and later an office/ study would you be better losing garage and parking car on drive and turning garage into playroom/ utility and then using smallest bedroom as office rather than actually building more

you say not paying window cleaner is at least in part disorganisation maybe you should spend a few pounds on money management books/courses etc

foreverondiet Mon 26-Aug-13 19:29:09

I would put it into mortgage... Make it easier to move up in a few years - wouldn't spend on extension unless really needed the space. It isn't really that much money so wouldn't start splurging on holidays etc. we were in similar circumstances with inheritance and we paid every penny into mortgage - increasing financial security for us as a family.

BikeRunSki Mon 26-Aug-13 19:21:41

We inherited £30k two years ago. I was expecting dc2. We did

£2k for stuff round the house
£7k each for each child, for mortgage and for holiday. Then DH got made redundant and we used the holiday money for living expenses. We decided that his grandma (who left us the money) would rather I spent more time at home with the DC than go.back to work when DD was 4 months old and have a holiday

whois Mon 26-Aug-13 18:41:08

Depends person to person.

I'd probably bank all but £1k towards a deposit for somewhere decent in London. The £1k I'd spend on some new clothes - could do with a couple of new work suits and associated stuff.

That's not really very exciting though.

Stripedmum Mon 26-Aug-13 18:29:46

A traditional three bed semi would be a step up the property ladder.

Stripedmum Mon 26-Aug-13 18:26:36

Small was the wrong word to use. Not spacious probably better.

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