What do people do with inheritance money

[88Pandora88]

Sadly my Grandad passed earlier this year, today I've just received inheritance. Just over 6 grand. I was shocked, grateful, made me a little teary but thankful etc..

What do people do with it?

I have a credit card which needs paying off, so I've just put 2 grand on that which will help massively, there's still 3 grand to pay but for now I've put most of the rest into an ISA account, put a little into both my girls isas for when they're older, and then just left the rest in my normal account for now.

Just wondering what others do 😊

I received a similar amount and added it to my savings, although if I’d had any debt I would have paid it off in full first.

I would pay off all the debt.

You can do with it whatever you wish. Pay off debts, take a holiday, put some away for the kids.
Just enjoy it x

I would recommend paying the debt off completely. The interest you’ll get on a couple of grand in the bank is so little and the interest you’ll be paying on your debt will be significantly higher. It’s a ‚no brainer‘ for me.
I got an inheritance of 25k a few years ago and I used it as a house deposit.

If I got a similar amount tomorrow it would go towards replacing my car as we are currently saving for that.
our driveway also needs to be re done.
if i didn’t need it for anything I would put it in savings or use it on a holiday.

Unless you’re on a 0% deal it’s madness to put money into an ISA while you have a credit card debt.

I bought a piano and a painting. Similar amount of money but 15 years ago. When my husband had an inheritance we got new sofas.

Really - whatever you want.

I got that last year.

Brought a few household items we'd have loved but couldn't afford. Had a weekend away last year and week away in uk this year at same place as loved it

Still have a couple of grand left in savings. It'll be spent enjoying ourselves as my mum would have wanted.

I saved mine for a rainy day, then when the rainy day arrived, it went on living expenses, and kept my head above water.

Clear the debt, which will leave you free to save what you’ve been making debt repayments with.

Being debt free is a great position to be in

I used my inheritance to completely renovate the do-er up of a house we’d bought and have invested the rest

DH got similar from his mum, he bought a greenhouse and a nice chair. She'd have loved the greenhouse and he uses both every day.

I’d go on a lovely holiday but I’m mid 50s so a different stage financially to you.

I used an inheritance I received from my grandma to pay my mum in law's hospital bills (not UK) and subsequent home and end of life care.

I had a specoal piece of jewellery made and bought my beloved pup. Rest went on living expenses as fairly skint at the time.

I bought a brand new car. My old one was only 2 years old but this one should last until I stop driving.

Judging by MN threads, either plot to murder some family member for getting 2/6d more than them; or spend the next 60 years whining about how unfair it is that their parent didn't die faster before spending all the money.

Is the 3k on your credit card 0%? If not, I’d pay that off completely then use they money you’re saving on repayments to top up your kids’ savings or whatever.

Debt makes you more miserable than savings make you happy. Pay off the debt. And save the saving you make on those payments for something fun/good in future. Then you'll feel the benefit for a long time to come.

The most I've inherited was £50 and DP and I went out for cocktails with it (the deceased was a long lost relative where a few people got a few hundred pounds each and then one of those people gave some of it away to their children).

But in your position, I would pay off all debt, and with the rest save some of it in the best instant access account I could find as the start of an emergency fund that I would continue to contribute to now I was out of debt.

Then I'd use a smaller amount, eg £3-400 to pay for a treat for DC, eg a special day out at Christmas like a panto, night away and dinner or our local wildlife park does after dark illuminations, which is always fun.

When I received inheritance from my Nan I put it towards my mortgage. My friend purchased a beach hut with hers and has had many lovely family days out in it, it is now worth a fortune. Wish I had done that.

£6k is nothing in the scheme of things. I’m not trying to be flippant, but it’s not a life changing amount.

First and foremost, pay your debts off. Daft putting the money into an ISA when you’re paying astronomical interest rates on credit card debt. Use it to pay off anything you owe.

How lovely. I’m sorry about your grandad.
I would probably pay off all the debt - unless it’s on interest only.

Pay off the credit card

I was extremely lucky to inherit my mum's flat and a chunk of money which I have just spent on doing all the decorative repair and upgrades on it that she never did in 30 years.

Pay off your debt then set up regular savings from what you would have spent servicing the debt