£100 extra a month - WWYD?

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I’m getting a pay rise for something I already do but is now being recognised with a minimum that bonus payment.

What to do with the money?

Split between kids’ accounts
Overpay mortgage
Buy added pension
Open S&S ISA
Let it absorb into general funds and not see the benefit

If your employer isn't matching any increase in pension contributions you give (you say you are civil service) then I would use a lifetime ISA . Government will top the £100 up to £125 then place it in eg stocks/shares/funds. You will not be able to access it (penalty free) until 60 though.

@EddyF

If you saw my earlier post I'm no expert but I did years of research before moving investment on an isa I inherited.

I would open an isa with vanguard company.
And start with their life strategy funds.
At your age I would go for 100% equity.

Look up vanguard.
Jack bogle who founded vanguard.

Jl Colins simple path to wealth (he believes investing in a few funds is best) and vanguard funds.

Just try it out with £100 first.

I'm actually with hargreve and lansdowne just to get me started and find my way around it all. They have an app I like also but I am going to move to vanguard soon.

I honestly wince when people at work mention their savings % interest are nil.

You don't need to lock your money away at all.
I sell shares xget my money within a few days.

@EddyF Catherine Morgan has a YouTube channel with various videos about personal finance including investing: https://www.youtube.com/channel/UCGzWXXccfnw6Lu4Mb-riQQ

There are various podcasts and YouTube channels from UK based financial planners, from whom you can lean how to get started in investing.

As has already been mentioned, an easy way to start is to use one of the app based provides like Moneybox, Nutmeg, Wealthify, or to use a provider like Hargreaves Lansdown, AJ Bell YouInvest, Vanguard, many provide ready made portfolios or simple multi asset fund of funds (such as LifeStrategy, MyMap).

Pension and premium bonds.

Thank you all so much! I will definitely be looking into all the information. Much appreciated.

I have found a free e-book about getting started with investing.
Could be useful: Download from MYFE.guide - the author is giving it away free, in exchange for email address, which they promise to only use to tell you about the other books in the series they are writing and for any updates to the book.

Mortgage, because over a mortgage lifetime you repay near double with interest payment. Once that's paid, put it in your pension.

@JustUseTheDoorSanta

Mortgage, because over a mortgage lifetime you repay near double with interest payment. Once that's paid, put it in your pension.

But the money saved reducing the mortgage vs money made investing, especially with LISA or SIPP can be much more in favour, assuming you can absorb the risk. At their ages, moderate risk is likely to not be a problem.

I'd go LISA all the way and aim to max it out when you can. It's basically a free £1000/year 😳

First month, something frivolous like a nice meal, manicure or hotel stay. Then: 50% mortgage, 50% pension

Personally I would treat the kids to a really good day out once a month or a nice meal out with your DH. You have a small mortgage relatively speaking, you have a good pension. Enjoy if it really is extra money.

I would use it to save towards a holiday. Your pension is in order, you are working hard and your mortgage isn't massive, enjoy the extra money for treats OP.

@JustUseTheDoorSanta

Mortgage, because over a mortgage lifetime you repay near double with interest payment. Once that's paid, put it in your pension.

The same applies in reverse - and then some - if you invest the money.

Mortgage (or maybe ISA). You have a very generous pension scheme for now so prioritise your debt or savings that can be accessed if you need or want them. Paying off your mortgage before DC hit expensive teenage years would give you so much flexibility with finances.

Savings in a S&S ISA are not locked away. They can be accessed usually pretty much instantly. You just don’t want to have to access them when the market is low.