What to do with 4K?
HowWeAre · 20/04/2021 16:40
Unexpectedly going to receive 4K next month. I know in the grand scheme of things it’s not a huge sum of money but to us it is a significant amount and also an amount I imagine can easily be frittered away if not careful.
Some details: I’m 24, live with my boyfriend (same age) of 3 years in privately rented accommodation and have recently graduated university. Neither of us have any debts, no cars on finance and are on salaried wages (him 21k and me 25k). Both of our jobs are stable and have continued throughout lockdown as we are classed as key workers. We currently save every month into savings accounts and ISAs as we are saving for a house deposit however that will probably be far away in the future as we live in a very expensive city so we will need to increase our wages significantly between us even if we save up a very large deposit.
So I’m thinking what should I do with the money? Split it between savings and ISA? Keep some for a rainy day fund? A treat after a hard year? Suggestions welcome- I don’t think I’ve ever really received a large sum of cash I haven’t accounted for and want to make sure I’m sensible about it. AIBU to have no idea lol
Am I being unreasonable?AIBU
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FAQs · 20/04/2021 17:08
This, might be boring however £5k towards a deposit in an expensive area is not something you’ll regret, in the name of who receives the money only. .
livingthegoodlife · 20/04/2021 18:46
If spend about £100 or so on a posh meal out/day trip, £200 on a physical treat (eg handbag, new shoes, fancy kitchen gadget, something for a hobby. Whatever is your thing). Then the rest I'd put towards the house deposit. I think £1000 is a lot to spend on treats!
nickymanchester · 20/04/2021 19:05
bitcoin is extremely volatile and should only be used with money that you are happy gambling with.
For example, last Friday, one Bitcoin was worth $64,000 and today, four days later, it is worth only $55,000.
The price has fallen 14% in just four days.
Is that the sort of thing you are advising her to invest in?
HouseyHouse21 · 20/04/2021 19:08
Travel - fine, but that is not a good reason. I can't imagine anyone sniffing at £4k to add to their house deposit unless they were a billionaire.
HollowTalk · 20/04/2021 19:13
But a deposit for a house is always made up of lots of drops in the ocean - as a PP says, if she invests £4K it will quickly become £5K. If she spends it on a holiday then after it's happened she'll have sfa.
Dee1975 · 20/04/2021 19:23
I agree with the 3k savings and 1k treat. Based on where you are in your life, saving for a house would be high up on my list. But it is also ‘extra’ money that you wouldn’t have had - and we've all had a crap year, so go on and treat yourself to something - like a holiday!
VestaTilley · 20/04/2021 19:40
Really sorry, I know it’s boring, but given your wages I would just add it to your house deposit savings- you’ll be able to buy all the sooner and it’ll be a nice way to use it.
No point spending it on treats or holidays while Covid is ongoing.
Take it from someone who is still renting at 35...
Notaroadrunner · 20/04/2021 19:44
I agree. It's so important to have cash to hand in case of job loss or illness, where you wouldn't get paid long term, or separation where you might have to find your own place to live. I'd probably spend £500 but keep the rest in savings (in your own name).
nannynick · 20/04/2021 19:48
Rainy day fund - though you probably have this already... look at what you have in instant access savings.
Lifetime ISA - I would fill that as fast as possible. 25% bonus and you can put it towards your home deposit (have to have the LISA open for 12 months minimum).
If it is coming due to an inheritance, then I would look at spending a small amount of it on something to remember that person who died.
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