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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

What would you do with an unexpected windfall?

54 replies

thebellagio · 03/11/2021 15:08

What would you do if you were to receive an unexpected windfall of money (approx £150k)

I've inherited some money, but I don't really know what to do with it. I know I want to put at least £40k into my house for various home improvements (kitchen, bathroom, extension, boiler, new windows, carpets etc) as that would take it from a doer-upper home into dream home territory but I don't know what to do about the rest.

I feel like I should put some into the mortgage, but it wouldn't pay off the balance, so perhaps it's best to leave it so that we have money for a lifestyle for years to come (although we're not fussed by holidays or cars or anything like that).

I want to put some money away for my child's future (would premium bonds be the best bet?) but I don't know what's best. Ideally, I wouldn't let her have it at 18 because I know from experience, money isn't appreciated and gets wasted. But then, I don't want to tie it up until the age of 21 or 25 incase she wants to go to university/house deposit etc.

I also think I should put a lump sum into my pension, but I don't know how much? Is it best to do a lump sum, or a %? Considering there's another 35-40 years until retirement age, I don't want to put too much focus on saving for the future at the expense of the here and now.

If you were to receive a significant windfall, what would you do with it?

Tell me your wildest fantasies haha

OP posts:
Sadiequeenofscots · 03/11/2021 16:18

We would likely buy a small holiday home - we’ve spoken about it in the past. Maybe a flat or small cottage that we could sell on down the line.

Depending on what was left, possibly some home improvements and add some to mortgage.

I have an ok pension and probably wouldn’t want to add to that at the moment.

Sadiequeenofscots · 03/11/2021 16:19

I would probably also add some to savings for both DC - maybe 10k each.

PaintedDaisy · 03/11/2021 16:19

Fair enough.

I'd buy as much marmite as I could and cause a marmite shortage then sell it

SusieBob · 03/11/2021 16:24

-Pay off debts
-Home improvements
-Put a bit aside for kids etc
-Put a bit aside for gin
-Stick the rest in pension

UndertonesOfCake · 03/11/2021 16:31

If it were me I'd use the lot to get on the housing ladder, but if I was already on it I'd
Pay (some of) the mortgage off
Buy a new-to-me car (mine is a near-dead banger)
Put the rest into rainy day savings

You may wish to look at the use of a Trust for your children - which could specify, for instance, that they get full access to the money at age 25 or 30, but money can be taken out earlier for specific things (university, mortgage deposit) with the agreement of the trustees.

HarrisonStickle · 03/11/2021 16:34

I'd put up to £4K into home improvements to have my house in the best possible condition.

Then I'd sell it and buy a detached house.

I'd buy a snazzy car like a Fiat 500 or Nissan Figaro.

I'd save most of what was left over.

RandomLondoner · 03/11/2021 17:42

I feel like I should put some into the mortgage, but it wouldn't pay off the balance, so perhaps it's best to leave it so that we have money for a lifestyle for years to come

It's slightly odd to think that because it won't pay off the whole balance, it's not worth paying of any of the balance.

I would put the left-over portion (after home improvements) into the mortgage. The resulting lower outgoings would mean extra money every month, all the micro-decisions on how to spend this will result in much more value being extracted from each pound spent than one or two big spending decisions at the outset. (Though perhaps some of the spare extra monthly income should be directed to pensions.)

girlmom21 · 03/11/2021 18:16

It's slightly odd to think that because it won't pay off the whole balance, it's not worth paying of any of the balance.

Many mortgage companies only allow you to overpay by a set amount each year before they apply additional charges. If OP overpays a large sum but can't clear the mortgage she's just wasting money

ShinyMe · 03/11/2021 18:24

I think with that amount, I would spend some on doing up bits of my house - I really do need a new kitchen and a new fence and maybe a better driveway. Then I think I would seriously consider investing in quitting my job and retraining as something else, without having to train at the same time as working.

ColinTheKoala · 03/11/2021 18:29

My DH had a windfall today.

Premium bond win.

But before you get excited: it was £25 Grin

When I inherited money from my father I paid off the mortgage (about £60K),bought a newer car for us (£10K)) a newer car for my mum (£10K) and some new furniture (£2k). The rest went into a bank account to keep for our son's university accommodation costs.

Not having a mortgage meant we had more disposable income so could afford more expensive holidays and meals out. However, you say that you couldn't pay it off so maybe spend some money on home improvements instead.

Sarahlou63 · 03/11/2021 18:30

AFAIK, you can pay off as much as you want on a variable rate mortgage? (You used to be when I worked in mortgages in the UK, but that was 26yrs ago!). If you do do that, consider keeping your repayments at the same level as currently which will pay off the balance even faster - assuming your lender allows it.

Lincslady53 · 03/11/2021 18:31

You are limited on how much you can invest in your pension in one year I think. With mortgage rate increases on the horizon. I would look at paying off a good chunk of mortgage. Then pension and Stocks and shares isa.

Asura · 03/11/2021 18:33

Pay off all my debts which eats a decent amount of it, a chunk into savings and then a newer car.

FlickerBeat · 03/11/2021 18:35

Buy a house.

emmathedilemma · 03/11/2021 18:35

I’d move house - I might just about be able to afford a 3rd bedroom for home office and some outdoor space in an area I want to live in with that amount extra!

Taoneusa · 03/11/2021 18:37

Probably see how much annuity I could get if I invested it. Then use the annuity for treats. Grin

GTAlogic · 03/11/2021 18:38

Pay off all of our debts, put a large chunk away for a pension and then have the rest available for day-to-day living.

DrCoconut · 03/11/2021 18:39

Pay off my mortgage, get the house done up how I want it, bucket list holidays, help family. It would be life changing. Only ever a dream for me sadly.

AliceMcK · 03/11/2021 18:40

House renovations, buy a static caravan on a decent site. Our DCs are still young so we’d get a good number of years holidays out of it. Plus with DH wfh we would be able to spend every school holiday there. Not that I’ve thought about it 😆

WhatsWrongWithMyUsername · 03/11/2021 18:46

I’m not you but I would:

  • put some against my mortgage (£50k?) but then save what I save on monthly repayments. That means if the shit ever hit the fan our monthly outgoings would be lower.
  • put about £50k into my pension (over 2 years due to limits, although actually I think you can backdate some). But I’m older than you so this is more pressing.
  • put aside £25k for the two DC (but maybe in my name! I’ve seen a nephew piss away the money that his minimum wage single mother saved for him)
  • £25k for nice things on the home and a holiday or two.
Original poster
thebellagio · 03/11/2021 18:49

For people asking about the mortgage, we literally moved into a new house about two months ago, so plenty of renovation's to be done. We're on a 5 year fixed mortgage, so I literally can't put too much into the mortgage for a while in terms of overpayments because the financial penalties wouldn't be worth it.

I'll overpay as much as I can, but that's only 10% a year I believe.

I'm not bothered about a new car. Mine is 8 years old so I've got a few years left in it at the moment - buying one now would be buying for the sake of it.

But you lot are so SENSIBLE!

Come on! Tell me that you want to blow it all by living vicariously! What would your wildest fantasy be?

Mine is to fly first class to New York and stay at the Plaza and do the Home Alone Experience! www.theplazany.com/special-offers/home-alone-two-fun-in-new-york/

OP posts:
dopenguinsdance · 03/11/2021 18:54

Invest it in a property for a close family member to live in. Use my savings to top it up and bring the mortgage payments down to an affordable level for the CFM. It would give them the security they need (long-term renter) and reduce their stress/anxiety so they can enjoy life a bit more.

Aroundtheworldin80moves · 03/11/2021 18:56

We have less than a 100k on the mortgage, so putting that aside for the end of the fixed term makes sense.

We would like to do a side extension, so seeing if that is feasible is another option.

Take the kids to Disneyland (including grandparents and niece)

Give each of us 1k to spend on flipperies... mine would be spent in the Lego shop!

Taoneusa · 03/11/2021 19:37

Ok. Liposuction, face lift, fabulous haircut and colour budget allocated for the rest of my life.

Plus cashmere dressing gown, loads of subscriptions for flowers, chocolates, teas, coffees etc, so that nice things arrive at my door regularly.

A sauna cabin and very fluffy towels, a jacuzzi.

Have the house wired with Phillips hue so fantastic coloured lights changeable at the touch of a button.

Plant tons of rose bushes all around the house, allocate a budget for a gardener.

AppleButter · 03/11/2021 19:42

Buy a an unfertile field and rewild it.
Apply for carbon offset scheme for field. (Surely such things exist) Many firms need to offset their carbon emissions.
Plant trees if necessary for said carbon offset scheme.
Buy more fields/scrubland patches. Rewild them but do not turn into forests, scrubland is more precious than mass-tree-plantations.

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