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Original poster

What would you do with £40k?

91 replies

Reesescheeses · 16/12/2023 20:08

I’ve just been gifted £40k. I’m feeling very very lucky and grateful to put it mildly. I need to think of how to use it.. how much to put in savings, how much to spend on things like doing up the house, holiday etc. Just curious what others would do?

OP posts:
ChilledToTheBone · 16/12/2023 20:09

We don't own so woukd use as a deposit for our own place

Howtosolveit · 16/12/2023 20:10

Tell us more about your circumstances and we can advise. Always happy to spend vicariously!

Catlover1705 · 16/12/2023 20:12

Depends on your age, employment situation and mortgage etc. If you're financially secure I would save half and spend half.

PinkflowersWhiteBerries · 16/12/2023 20:13

New kitchen , £20k. Holiday £5k, savings £15k

Itsbeginningtolookalotlike · 16/12/2023 20:13

For me it would be £10k holiday, £30k off the mortgage.

DragonFly98 · 16/12/2023 20:18

Every penny off the mortgage. Would never spend money on an expensive holiday while we have a mortgage. Same goes for kitchen and bathroom they both need doing, but will be paying mortgage off first for piece of mind.

BoredofBlonde · 16/12/2023 20:20

Buy a holiday mobile home on a site. It would give family and me free holidays and the security of somewhere to live if housing became an issue

TeenLifeMum · 16/12/2023 20:21

I’d buy a car (because ours is on its last legs) then put the rest in savings as it’ll get interest and when our mortgage is up for renewal, I’d pay a bit off. I’d also go on holiday because the savings I currently have wouldn’t be needed for a car anymore.

AchillesHeelys · 16/12/2023 20:24

£10k savings
£5k holidays
£25k redecorating the house inc. new bathroom and flooring

1975wasthebest · 16/12/2023 20:26

I’d put £20K in an ISA (no tax on the interest), put £15 in Premium Bonds, and have a couple of holidays in Europe with the remaining £5K.

Torganer · 16/12/2023 20:26

Depends on what you want and need. I’d probably keep it for a few years in a high interest account and go on an amazing holiday (wouldn’t do it now as children are too young).

Original poster
Reesescheeses · 16/12/2023 20:30

We are ok financially. Early 40s. Married, 3 young kids. Have a mortgaged house we are happy to live in long term but could do with some renovations. Mortgage will be paid off if we continue at current rate when we are 60 but it’s about to go up dramatically next month and I was thinking we’d have to seriously cut back on luxuries such as holidays to pay it. Holidays do seem so frivolous but the kids won’t be young forever.

OP posts:
LBOCS2 · 16/12/2023 20:35

I'd redo the kitchen and change the patio. There's absolutely nothing wrong with them but it would change it more in line with the way we use the space; it would give us room for an island and French doors out to the garden. We've got plans for the mortgage and to pay for the loft conversion we want/need but I don't have a 'spare' sum of money to do this more frivolous work.

Torganer · 16/12/2023 20:37

I don’t think holidays are frivolous. I have amazing memories of holidays with my parents, don’t really remember the state of our kitchen!

Smerpsmorp · 16/12/2023 20:37

Use it to pay off a big chunk of the mortgage - if the rates going up this could reduce monthly outgoings significantly

Treewizard88 · 16/12/2023 20:40

Id take my kids on some real treat holidays thinking disneyland paris and lapland say £12k . Then pay £15k off the mortgage and put the rest in savings. Making memories with my kids would be a priority they wont want to spend time with you forever but the memories will last. Money comes and goes and you never know whats going to happen in your life, enjoy it!!

InefficientProcess · 16/12/2023 20:40

I’d book a nice holiday and use the rest to pay a chunk of my mortgage off.

orangetriangle · 16/12/2023 20:41

use it to pay as much of your mortgage off as you can we have just received an inheritance and used some of it to pay off our .mortgage big peace of mind and now we are 650 pounds better off a month

Silverbirchtwo · 16/12/2023 20:41

Reesescheeses · 16/12/2023 20:30

We are ok financially. Early 40s. Married, 3 young kids. Have a mortgaged house we are happy to live in long term but could do with some renovations. Mortgage will be paid off if we continue at current rate when we are 60 but it’s about to go up dramatically next month and I was thinking we’d have to seriously cut back on luxuries such as holidays to pay it. Holidays do seem so frivolous but the kids won’t be young forever.

In that case take it all off the mortgage. Your monthly costs will go down and you can save a bit for other things.

BarbaraofSeville · 16/12/2023 20:41

Sounds like throwing a chunk of it to the mortgage would be good for you.

Maybe £5k for a special holiday, £5k as an emergency fund and £30k off the mortgage?

stayathomer · 16/12/2023 20:45

If I was going to do anything-Get plumber in to sort out our rubbish plumbing, get pet insurance, get cleaner- so just a once off for one big deep clean, print off all photos (yes all!), get hair done, gift some to sister and mil Then put some in an account so each of my ds wouldn’t have to pay for driving lessons and would have a start in college (yes I am married, dh would be fine, he’d have a happy wife so happy life😅)

AngryBirdsNoMore · 16/12/2023 20:47

Reesescheeses · 16/12/2023 20:30

We are ok financially. Early 40s. Married, 3 young kids. Have a mortgaged house we are happy to live in long term but could do with some renovations. Mortgage will be paid off if we continue at current rate when we are 60 but it’s about to go up dramatically next month and I was thinking we’d have to seriously cut back on luxuries such as holidays to pay it. Holidays do seem so frivolous but the kids won’t be young forever.

100% I’d put it into the mortgage next month.

1975wasthebest · 16/12/2023 20:47

Having read your update, I now think pay £30K off your mortgage and, if you’ve got a decent amount of savings, spend the rest on fun stuff for you and your family.

https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

Lizzieregina · 16/12/2023 20:48

2 new bathrooms and a cruise to Alaska

Original poster
Reesescheeses · 16/12/2023 20:53

So can I just pay off a chunk of the mortgage even though we’ve signed up to a fixed rate? Will that make payments go down significantly?

OP posts:
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