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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To not know what to do with this money?

50 replies

SharkiraSharkira · 22/04/2017 09:41

I am due some money soon, not a huge amount but a decent chunk for me. I need to use some of it to pay back some debts so after that is paid I will probably have about £1500 left. This is, obviously, a non negotiable expense.

There are a few other things I would really like to do with the money but I really don't know which to do and what would be best in the long run.

I am trying to start a kind of crafty-type business, its a hobby of mine but I have some ideas of products I could make and sell on stuff like etsy so just something I could do on the side in addition to my regular job. So I would like to use some money to buy supplies/equipment that I could use for that. This could make me some money if its successful but could also just be a big waste if I don't sell anything.

I really want to upgrade my bike license, currently I can only ride a very restricted bike and I have to re do the test every 2 years. If I do upgrade I won't have to do anymore tests, will be able to take a passenger (which would be really useful for me), will be able to go on motorways/take longer trips to see family etc etc. So it would be really useful. However, I still have my current license for another year so I don't NEED it yet, plus I won't have the money to upgrade to a more powerful bike yet. So I could just save and wait until I do.

Lastly, I would really really love to go on holiday as I haven't been abroad in years. I'm finishing uni this year and I would really like to celebrate all my hard work with a trip away. Nothing expensive, probably just a cheap week short haul staying in a cheap hotel/hostels etc. But obviously this is a luxury rather than a necessity!

So, aibu to not know which to do? I can't afford to do all of them. None of the options are essential but 2 could be very useful and the other is just plain fun! Should I
A) buy stuff for business?
B) upgrade my bike license?
C) go on holiday?

Or should I just do none of the above and save the lot? Help!

OP posts:

Pentapus · 22/04/2017 10:30

It's a mistake to invest significant money in a business if you don't know it's going to succeed. Buy a few materials and see if you sell the product first. If you do, then buy more. The higher price point for buying only a few materials will help you understand appropriate pricing for your product anyway.

You'll be gutted if you end up with £1500 worth of unwanted string and glitter all over your kitchen and no holiday snaps.

GrumpyOldBag · 22/04/2017 10:30

Inflation is running at 2.3% so you need to invest to get a higher return than that.

BarbaraofSeville · 22/04/2017 10:33

Does paying off the debts mean that you will have more spare money from now on?

If so, I would spend a smallish amount (couple of hundred? Sorry I have no idea how much 'craft things' cost) and most of the rest on a holiday, and commit to save a decent chunk every month from now on so you can afford your bike licence before it runs out and so in future you have spare money for unexpected expenses, further holidays and anything that comes along without needing to get into debt.

If you can get into that position, honestly, it is life changing to be able to pay a bill for a broken washing machine, bike repairs, tax, insurance etc without worrying where the money will come from or getting into debt. Cheaper because you're not paying interest and charges too.

Original poster

SharkiraSharkira · 22/04/2017 10:34

Bike test would be about £500.

Holiday and business stuff could vary hugely!

OP posts:

Guiltypleasures001 · 22/04/2017 10:37

Don't bother with the bike take driving lessons, more useful, can carry homemade stuff in the boot, by a camper van and go on holiday 😁

gleam · 22/04/2017 10:46

Put the money away for your bike licence.
Go on a cheap holiday.
Buy a few craft materials, if you need to. You say it's already a hobby - can you try to sell pieces you've already made and see how that goes first?

MorrisZapp · 22/04/2017 10:49

Do all three. Why wouldn't you?

Original poster

SharkiraSharkira · 22/04/2017 10:51

Not really interested in doing driving lessons at the moment - bike is cheaper for all the running costs and is more fun I do plan to take driving lessons in the long term but it will cost a lot more money and take a lot longer than doing the bike test, which can be done over 4 days total.

'Craft stuff' is a pretty broad term as the costs vary a lot, the supplies are quite cheap and I could afford to just buy small amounts each month to top up my stock, the money would be to buy equipment that I could use to make more stuff - probably couple hundred quid at the most. Stuff I make is a bit fiddly but doesn't take a long time.

Job wise, I have a job and I'll be going up to full time hours soon - I'm also due for a pay increase so I will be able to make small amounts of savings from now on hopefully. I'll be looking for a better graduate job but if nothing comes up anytime soon then at least I'll have that to fall back on. I'll be working a lot over the summer to save as much as possible so if I do go on holiday then it'll definately be out of season, probably in the autumn.

OP posts:

Original poster

SharkiraSharkira · 22/04/2017 10:53

I'm just scared of having nothing left Morris! I quite like having some money in savings for a change

OP posts:

pallasathena · 22/04/2017 10:54

Driving lessons. Passing your driving test gives you the freedom to go anywhere you please and for many jobs/careers you need a valid driving license as part of the required skill set.
If there's any money left over, put it towards a deposit on your first car.

DiseasesOfTheSheep · 22/04/2017 10:57

Save it, or at least, the vast majority of it. The crafting is unlikely to be lucrative, the bike test could wait until next year and a holiday isn't really a priority if you don't have anything saved for when disaster strikes.

TheTabardOfDoom · 22/04/2017 11:35

I would do nothing for now. Currently you have three options. Given time there will more options, one of which will make more sense. Just because you have money doesn't mean you have to spend it.

CremeEggThief · 22/04/2017 11:38

Holiday for £1000 and save £500 for your bike test.

Wedrine4me · 22/04/2017 11:41

Have a cheapish holiday. get some more money behind you over the summer then reconsider your position.

2boytrouble · 22/04/2017 11:44

Just a small comment - (id do the bike license) but, my friend has recently spent so much time making a business, I've created her logo for her (graphic designer) and she's trying to sell her own crafted things on easy, they're beautiful, creative, well made.. but... no one is buying them.. the etsy website isn't getting her many views and now she's having to re-think. Be wise. Be careful!

sashh · 22/04/2017 12:40

Bike licence then a holiday where you can ride big bikes. Or at least hire one for a few days.

Fairenuff · 22/04/2017 12:51

If you know that you will have more money coming in, I would say spend some of it on a holiday if you want to. Especially before the prices go up once the schools break up. You can get some really good deals.

Put the rest of it away to spend on your bike licence next year.

Don't invest in craft. No-one really wants to buy that stuff. You might sell to friends and family but even they will have their limits.

Are you using the bulk to pay off student loans? If so, it might be better to not do that and just pay it off through your wages.

user1471462115 · 22/04/2017 12:56

Save it all.

Everyone should have rainy day money for a new fridge or washing machine and three months of bills and rent and food in case of losing your job

ImperialBlether · 22/04/2017 13:01

I'd save £1000 in premium bonds and keep the rest in the bank as a buffer. With your increased wages at work, I'd save for a holiday.

kmc1111 · 22/04/2017 13:23

Save it in the highest interest account you can find. If you don't already have a safety net of that amount it's insane to spend it on things you don't need right now.

Almost no one makes any money from Etsy type businesses. Most people, even dedicated people, lose money, and a lot of their spare time. Keep it as a hobby and try selling the items you already make. If you're one of the rare few whose items actually fly off the shelves then put more money into it.

You can't afford a bike upgrade right now so there's no point upgrading your license early.

You have a new job and better hours so start saving for a holiday now. It's much easier to do when you already have some money set aside for any unexpected costs that might come along.

Original poster

SharkiraSharkira · 22/04/2017 16:16

I think I might just go for the bike license but save for the better bike, at least then I can make full use of the bike I have, and save over the summer for a cheap holiday towards the end of the year.

Might give the craft stuff a miss or at least keep it minimal and just do it as a hobby.

OP posts:

Ellisandra · 22/04/2017 16:29

Don't do the bike test yet.
Some of the benefits you mentioned:

can ride a bigger bike. OK, but you don't NEED that, and it would cost to buy one
you can take a passenger. Well, that's their benefit - why are you paying for it? I remember angsting over my first car, 3 door or 5... then I realised the pain of climbing into the back? They were lucky to be getting the lift!
can visit family. Let them visit you (you can avoid motorways anyway)

I think the most important thing here, when you have debt, is to learn that money will not actually burn a hole in your pocket! End this reaction of "oh I have some money, what can I buy?!"

Don't spend any of it until your degree is finished, your job goes full time, you get the pay rise you're expecting.

Use some of the saving from not making debt repayments if you want to spend.

ThePants999 · 22/04/2017 16:32

You're in debt and have no savings. Save it all so this doesn't happen again!

Ellisandra · 22/04/2017 17:13

I just saw you're in the process of a DRO. I really don't think that the holiday option is a good one at all.
As per my previous post - it's a good thing to move to a mental place where money isn't for spending!

Original poster

SharkiraSharkira · 22/04/2017 19:09

The only reason I really want a bigger bike is not for the speed but because I live in a very hilly area - a bigger bike can cope with the hills whereas my current one is not very good as it doesnt have the power for me to be able to keep up with traffic properly. I slow to 45-55mph going up hills, I just physically can't go any faster, and major A roads with NSL are a huge part of travelling around in this area.

My family can't visit for various reasons, namely the expense and the fact my DF is elderly and can't drive that distance. I don't mind going to them but it would be a lot cheaper on a bike rather than taking the train all the time.

The being able to take a passenger is a benefit for me too!

Either way I won't be spending anything until I finish uni and my job goes full time anyway. So I can always change my mind in the interim if need be?

OP posts:

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