In our circumstances, what would you do with £13K(5 Posts)
We have £13K saved, but won't be able to save anything at all over the next couple of years. The money can just sit there, but we have various wants:
1. Roof has seen better days (on a very wet day we get a couple of damp patches). DH is in denial roof needs any further work (had it patched up in two places last year), but I think we should budget for a possible new roof in next couple of years.
2. Putting aside roof, I need reassurance of money for the unforeseen (like when our 10 year old boiler in the middle of winter and we needed a new one), so maybe £2.5K
3. We are trying to pay a little off our mortgage each year, so it's paid off before DH retires, also this reduces interest and monthly payments
4. DD is 14 and we would like a holiday abroad or weekend European city break. You can argue this isn't essential, but sometimes life is about experiences and DD won't be with us forever
5. DD is aiming for university, apart from the £13K we have £6K in an account in her name for the future, will we need to support her any more?
6. £2K (included in £13K) is like a pet fund instead of pet insurance. Never used it, but both pets are nearly 16 so hard to say what future entails, although we are agreed we don't want to them through anything major unless they are guaranteed to fully recover. Could we use some of this to pay off mortgage maybe?
It's a difficult one but you sound like the sort who needs the security of being able to pay your bills and what you really need.
My thoughts are:
My DH always says life is for living and I get you want what I guess is an experience abroad with your DD. Look into whether you could do a 2-4 European break cheaper than a week abroad (depending on what you'd want to do in either circumstance) in the school holidays.
You could always pay just £1,000 off your mortgage at the moment and then do the same if money permits in a year or so later.
I think you're trying to say you wouldn't operate on your pets if they needed it, so maybe £1,000 would be enough for any basic health problems - I have two older pets and most one of mine has ever cost was £300. Not saying you should, but if my pets needed treatment I'd manage to cut back on going out, treats and food if I had to for them.
DD might not go to university, but £6k would certainly help with accommodation costs. I'm sure some families wouldn't have this amount put aside.
We paid £5K off last year and it reduced our monthly payments and amount of interest, therefore, giving leaving us with more money readily available, which in your circumstances you could use to start adding to the £8K you'd have left.
Any money you take off mortgage means more money in your pocket each month that you can then turn around & spend on other stuff. It's the best choice in that group as long as you keep enough back for true emergencies (say £4-£5k?).
Shop around for city breaks to Europe... if you are willing to ride the coach or overnight ferry, the costs can come down sharply.
fix the roof. Obviously. Apart from it being obvious, insurers are not keen on payouts when maintenance has been neglected.
and it is summer, so time to get it done.
make sure the money is earning some interest - Santander 123 at 3%, two club lloyds at 5% etc etc.
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