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Original poster

If you had no savings and lost your job ...

51 replies

CurlewKate · 21/08/2023 17:50

....then you suddenly got £120,000 how long would it last you if you just carried on with your current lifestyle, not looking for a new job?

OP posts:
Isyesterdaytomorrowtoday · 21/08/2023 18:31

No cut backs but also stopped savings/investments- about 18m to 2yrs

Isyesterdaytomorrowtoday · 21/08/2023 18:33

Just saw the additional questions- if I’m allowed to make changes and cut back on the work related expenses dog/childcare/cleaner etc then I could probably make it last 2.5years

TheMousePipes · 21/08/2023 18:35

I would use it to clear the remaining mortgage which would reduce outgoings considerably. Then I think it would give me 6 or 7 years.
Will your friend be able to work again?

WorriedMillie · 21/08/2023 18:36

Does she need any additional help/physio/etc as a result of the injury?
OH had compensation for an injury (a much smaller amount) and it was swallowed up with therapy to aid his recovery

That aside, I could probably stretch it to 5 years :)

TheThingIsYeah · 21/08/2023 18:38

Jeez there's some people on here who must spend like a drunk sailor in port.

Assuming tax-free I'm sure 4 years is would see you reet, ie £2.5k pm

notacooldad · 21/08/2023 18:38

for me, probably ages. I don’t have many bills and I’m quite frugal by nature.

Scottishskifun · 21/08/2023 18:41

About 4 or 5 years but I have double nursery fees to pay and that's over 14k a year on it's own!

If it was me I would probably take 6 months to myself then 6 months job hunting for something I wanted to do.

Matchinglipsandfingertips · 21/08/2023 18:42

Two years but I have huge mort due to age restrictions. I would then access pension and pay off my mortgage.

Dontcallmescarface · 21/08/2023 18:43

If DP was still working...10 years.

transformandriseup · 21/08/2023 18:48

7 years for me if dh was working also.

Singleandproud · 21/08/2023 18:51

5.5 - 6 years I think if just continuing my lifestyle.

What I would actually spend it on though clearing house payments and personal loans outstanding from renovations (£35000)

As she's been in an accident have any adjustments made to the house, pay for relevant therapies.

Pay for courses to retrain for a WFH job (if I didn't already have one)

I'd then have a proper insulated garden office built. (£25000)

Put the rest away to live on whilst job seeking / for DDs uni fees/ house deposit / therapies she would benefit for her autism.

Spendonsend · 21/08/2023 18:57

I could last around 7 years.

Is your friend capable of some work as that would make it last longer
Especially if invested in someway rather than just spending it.

Merapi · 21/08/2023 18:59

If that happened to me, then if DH was still working, it would last around 10 years. I'd be sensible, cut back on non-essential expenditure and spend more time on my hobbies, none of which cost very much, and none of which I have enough time for at the moment.
I wouldn't have to drive anywhere near so much, so that would save several grand a year.

RaininSummer · 21/08/2023 18:59

About 7 years I think especially if some was invested for a while

CoralDaffodil · 21/08/2023 19:01

3 years of tax free and husbands wage was still being paid.

HowcanIhelp123 · 21/08/2023 19:04

I bring in £2.3K a month but save over £300 so if tax free £120,000/£2000 = 60 months/5 years.

As it is, you could get a fair amount of interest on it - 5% is £6K a year. £500 a month isn't huge, but it would be enough to pay half the mortgage. We could live on that plus DHs wage if we were careful. We got a mortgage that meant it would be very tight but livable if we were on one wage. So if DH still had his job with that £6K supplement, particularly if it meant no childcare bills etc, we'd be fine inflation etc depending.

Also the £120K is about 70% of our mortgage, which at £1K a month is our biggest expense. Another option would be pay it off so minus most of the mortgage, childcare bills etc we'd easily be fine without me working.

LoobyDop · 21/08/2023 19:04

You have to take into account that if you aren’t working, you need something to occupy your time. At least some of the time that will involve spending money- on transport, entrance fees, books, and so on. I took six months off between contracts and realised quite quickly that if I was going to cut spending to the bone as I’d planned, it would be a pretty dull six months and end up being fairly pointless- not at all the once-in-a-lifetime opportunity for a break I’d envisaged.

Itsnotrightbutitsok · 21/08/2023 19:06

5-6 years as my total income is about £20k.

But if I was your friend I’d take a year off and go travelling and then get back to work, so I’d spend more than £20k in the first year but then be more sensible with it the following years.

I assume she has a mortgage, if not I’d be using the majority of it as a down payment to buy somewhere.

MintJulia · 21/08/2023 19:08

6 years. But in three years, my mortgage ends and school fees end, so the second three years are much less expensive than the first three. Single income household.

Phos · 21/08/2023 19:11

As long as DH was working, it could last maybe 5 years? In that situation though we'd probably put away enough to cover my half of DD's school fees then I'd look for something else even if it was lower paid than my current role. Probably see it as an exciting opportunity to reskill!

BlackberryCrumbs · 21/08/2023 19:19

About 6 years and that includes saving the same amount we save now each and not touching our actual savings.

If we were going all out - stopping saving AND spending all our savings too on top of the £120k - more like 9 or 10 years.

justanothermanicmonday1 · 21/08/2023 19:22

About 5 years as I rent and don't live a lavish life style 😂

ICanBuyMyOwnBooks · 21/08/2023 19:23

If it's for both DH and I, then two years. If it's just for me, then four years.

TeenLifeMum · 21/08/2023 19:25

4 years. I think I’d consider working part time doing something I enjoy as I know I benefit from routine and that would make the relaxed lifestyle last longer. But that’s me.

SophiaElise · 21/08/2023 19:27

Tax free? About 3 years.