To not know what to do with this money?(51 Posts)
I am due some money soon, not a huge amount but a decent chunk for me. I need to use some of it to pay back some debts so after that is paid I will probably have about £1500 left. This is, obviously, a non negotiable expense.
There are a few other things I would really like to do with the money but I really don't know which to do and what would be best in the long run.
I am trying to start a kind of crafty-type business, its a hobby of mine but I have some ideas of products I could make and sell on stuff like etsy so just something I could do on the side in addition to my regular job. So I would like to use some money to buy supplies/equipment that I could use for that. This could make me some money if its successful but could also just be a big waste if I don't sell anything.
I really want to upgrade my bike license, currently I can only ride a very restricted bike and I have to re do the test every 2 years. If I do upgrade I won't have to do anymore tests, will be able to take a passenger (which would be really useful for me), will be able to go on motorways/take longer trips to see family etc etc. So it would be really useful. However, I still have my current license for another year so I don't NEED it yet, plus I won't have the money to upgrade to a more powerful bike yet. So I could just save and wait until I do.
Lastly, I would really really love to go on holiday as I haven't been abroad in years. I'm finishing uni this year and I would really like to celebrate all my hard work with a trip away. Nothing expensive, probably just a cheap week short haul staying in a cheap hotel/hostels etc. But obviously this is a luxury rather than a necessity!
So, aibu to not know which to do? I can't afford to do all of them. None of the options are essential but 2 could be very useful and the other is just plain fun! Should I
A) buy stuff for business?
B) upgrade my bike license?
C) go on holiday?
Or should I just do none of the above and save the lot? Help!
Sensible side says business, give it a shot but I know I'd have booked the holiday already 😂
Il spend it for you op! Lol just joking as you say is a decent chunk for a lot of people 1500 can really brighten up a rainy day I'd say save it for now and try and add to it if you can x
You could use £500 or a cheap holiday then put £500 into your business then save the £500 left for your bike test or the future.
sits on the fence
given that most of your posts are a big moan about how poor you are, I would put it away as rainy day money
Hmm that is very tempting chocolate!
My plan was to try and do 1-2 of the 'things' and then save the rest as I have no savings at the moment and I would really like to put some aside for a rainy day so the leftovers was going to be to start off my savings! But technically I could do all three and just have no savings left. Arrrg decisions!!
Well tbf it does suck being poor. Am I not allowed to complain about that marabou?
Being THAT poor was always going to be a temporary position though, as I started a new job and switched from weekly to monthly pay so it was just the first couple months were a struggle. Back on track now.
One tip for the business is don't go buying loads of material. But what you need to make a few products, sell them then buy more.
A big mistake I see is that you could easily spend loads on materials and not get rid of most of it. Any income from that can be put aside towards a new bike and in the meantime go on your holiday. If going alone I would say maybe £400-500 max really pushing it all in food travel.
1500 is a good amount you don't need to worry
I'd go for the business equipment. The more you invest in that the more money you will make in the long run. You could possibly make your £1500 back by the time your bike licence runs out so will then have the money back again to upgrade it.
The viability of your craft business will depend on your ability to sell at a profit so I think you should invest in a minimum of supplies and see if you can sell the first few items successfully to build up the funds for more supplies.
Upgrading the bike licence sounds an excellent idea that will give lasting benefits.
Personally, I'm not in favour of spending large amounts on a holiday because when it's gone, it's gone - so I would say do the holiday as cheaply as possible and save the rest.
Money put into a crafting business is money wasted. I have many years of experience in the industry and I cannot express enough what a poor investment that is. You would be better off spending a couple of weeks in Goa.
However, £1500 could retrain you in a new, more lucrative skill. What's your job? What skills could you learn that would make you more valuable to your next employer?
In your position I would 100% invest £1500 in training and career development.
If you're just finishing uni, won't you be moving into a reasonably well paid job?
Will you actually make money on your craft business? There are gazillions of them out there so how will yours be different?
If you need to give it a go, buy a minimum of supplies and see if it can make a profit. If you do, fabulous. If you don't, you have got it out of your system.
I would do bike licence as it is a firm and lasting benefit. If any money left over, small amount of craft business.
Do the bike test.
Bit of crafting stuff if you can make more money from it, if not it's still a hobby. Bear in mind what hourly rate you will get, i.e. how much profit divided by the time taken, including time to sell stuff. You have to shift a reasonable volume at a decent margin to get a return that would match say working the same number of hours in Lidl.
Holiday if you think it's better to have one than the peace of mind that comes from having some savings.
Holiday then business. If you start making money then save some of it towards the bike licence.
How much is bike licence? Assuming it's not 1500, I'd put the money for that into an isa and leave it, when your current licence expires the cash is there.
The rest? Holiday. We were left some money and have not at all regretted using it for travel. You never know what life can bring you, so enjoy it.
Craft business won't make you any money. At least you've said nothing that's compelling enough to think you would make anything and the pitfalls of craft businesses as money spinners are well known.
Then do the bike test in a year and save for a bike.
I would also put some rainy day money aside.
I wouldn't consider going on holiday unless I was really flush.
Money put into a crafting business is money wasted. I have many years of experience in the industry and I cannot express enough what a poor investment that is.
Have a lot of friends who have done this and made zero back. My gut feel from observation is that they don't cost out their time properly and are competing with too many others who don't either. Does that match your observation?
Personally I'd have booked somewhere for a budget (say mid season) holiday and put the rest toward the transport needs if that would improve my quality of life longer term
If you have to pay every two years to update your current licence then definitely allocate some of this money to upgrading when the time comes. You will save money in the long run.
It's really difficult to make a profit from crafting. If you want to make a business out of it, make sure you do a costing plan before you buy anything.
A holiday would be lovely, even a really cheap one, and I bet you would find a great deal somewhere. I'd be tempted I must admit
I agree dont waste it on craft stuff.
Also rather than blowing it or a large part on ONE large holiday - if your really hard up - why not put aside for more regular smaller holidays even if its a b and b for a few nights here and there?
Start a holiday fund with some of it and add to it? Then save the rest. I fear very dodgy economic times ahead and its not just brexit - lots of stuff happening...
If you are generally struggling financially, then I wouldn't waste it.
The bike licence does seem the most long term benefit option. The crafting business, how long will you be doing that? If you are completing your degree this year, will you be looking at a higher paid job with potentially long hours at the start while you 'prove' yourself? How likely is it that you'll have time to run a hobby business as well?
So bike licence and then save whatever is next, particularly if once you graduate you find yourself needing stuff like a new work wardrobe.
Join the discussion
Please login first.