How would your life be different with 150k in your account?

[mikado1]

Sunday daydreaming here....

I would probably get a new, second hand car, start a healthy holiday fund for the future years and spend a chunk on a really good coat/shoes/bag and then... maybe I'd have to be sensible and save/invest.

I’d do essential repairs on the house, and I’d help my sister who could really do with working less, as a single parent to a disabled teenager.

A few years ago, I’d have said I’d travel, but times are harder now!

Would make such a huge difference to our life, DH needs to change jobs as its making him ill but he can't afford to take a pay cut.

I always thought we would need 500k upwards to make a difference in our lives but even 50k would be life changing for us now.

It’s now 85k per bank or building society.

Both DH and I have more than that each in various accounts. It makes no difference to our daily lives in the sense that we don’t do much out of the ordinary on a regular basis. It does mean we never worry about money and have amazing holidays.

This weekend we had lunch in a Garden centre, popped to a superstore, bought a generic Medicine for me as cheaper than branded, went for a walk in the countryside not far from our house, watched Netflix, DH repaired the shower as he likes faffing about doing DIY as a hobby and ate custard tarts.

As a single parent working fulltime and claiming UC top ups in HA rental property, I'd obviously declare it. I'd stop getting my uc so would have to use it to live on. It would be deprivation of assets to do anything else? I receive about £400 a month, so crudely speaking, I would have to put aside at least £4800 a year until my kids have flown the nest? I'd shove the rest in a pension I think and any spare go towards helping dc out and home improvements.

I have total head in the sand and never really considered it, but am probably looking at inheriting this kind of amount when my parents go, so a helpful exercise!

I think it's interesting that, despite it being hypothetical, so many have said v practical and future safe ideas. I do think putting it towards some great holidays would be up there after those. Also interesting to see that paying off mortgage may not be the best thing. Would like to know more on that.

This video explains it: https://meaningfulmoney.tv/2021/12/02/pay-off-your-mortgage-or-invest

However, the video is two years old. The stock market is currently choppy and mortgage interest rates are much higher. In my view this skews my decision (as a cautious 51 year-old) towards paying off the mortgage. If I was an optimist in my late twenties I might view it differently, (but then my parents might still be alive and I wouldn't have my £150k inheritence in the bank).

Also, I know what my mum would have preferred me to do with the money. 🙂

@mikado1 what they probably mean is investing in another property. rather than paying down on one, you then have two which both in theory should appreciate in value and you again should in theory make some monthly income from rent.

This is a long term strategy and I’m not convinced it’s really worth it nowadays as you have to pay a higher rate of stamp duty on second homes, capital gains when you sell. It’s also difficult to make a profit as a landlord now once you factor in agents fees, wear and tear allowance has been removed, income tax is payable on rental profit and the ongoing cost of maintaining another property.

Twenty years ago, it was definitely the thing to do.

I would buy a house and get a mortgage. Rent it out to theatre people (lots of demand for that here, and then not fucking oclver a family in a few years if having to sell) and then selling it for the kids to share and use a deposits for their own houses.

I’d pay off debt then put the rest towards the mortgage. It wouldn’t pay it off but it means we wouldn’t be paying it til we’re 70.

Pipe dream though! I’ll not inherit a penny from my lovely but skint parents 😁

I think I'd have to have a fancy all inclusive holiday as well as the more sensible stuff.

I would pay the mortgage off (luckily small amount left), put a decent chunk towards uni costs so DD doesn't have to worry about loans, some towards pension and some to furnish my new den I am getting anyway but would be able to stretch to custom build bookshelves etc instead of IKEA.

I converted it to euro and it would pay off the mortgage and leave me with 10k savings so thatr would be good enough for me. No mortgage would mean I save 1k a month on that and then I would save a further 80 on life insurance and mortgage protection too.

Straight into NS&I 6% account - it will generate about £600 a month in interest which ill use for a year to pay off debts. Then after that year is up remove £10k to go on holiday and leave it for another year.
3rd year id pay into my mortgage the balance.

Is 6% (minus income tax, if liable) higher than the interest you're paying on your debts? If not, you'd be better off clearing the debt upfront.

£25k x2 to the the kids accounts.
£65k aside to pay off the mortgage when the fixed rate runs out.

That leaves £35k, £10k to the car fund, £25k to the holiday fund / savings.

New exterior doors
new windows
replumb (have steel pipes atm😒) probably new boiler
rewire
solar panels
new car
see if there's a time we can take sons and their girlfriends on holiday
donation to the organ fund
new mattress
new settees

Life would trundle along as normal, just a little more comfortably.

Get an extension on our house!

New shower room
Finish unfinished bathroom
New flat roof over kitchen and garage

Removal of awful lean to and replace it with a patio
Jungle like garden seriously tamed
New windows
Front facade of house tidied up
Leaning over fence fixed
Two sheds in the garden got rid of
New carpet

Definite house repair theme!

Other thank that - an amount set aside for my dc

Some in my pension

Get my teeth straightened

Nice holiday(s)

Buy a car if enough left over

OR

Forget all that (minus giving money to dc) and buy two bolt holes - one in France and one in Italy.

Thanks for this OP - it was cathartic 😂.

I’d pay off my credit card debt, get our leaking roof mended, install central heating (we have none), and fix our aged draughty windows! And buy a new (2nd hand) car.

Then I’d keep the remaining £50k or so in savings, and use its existence as an incentive to add to it so I can help my kids through university when the time comes. I hate the thought of them starting adult life with vast debt and losing 9% of their salary every month to the student loan co. Starting out in debt is what has made my adult life hard, and I don’t want it for my children (or anyone else’s for that matter, I’d vote for any party who reformed student debt).