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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask what you would do with 50k?

118 replies

PlanningAhead1 · 03/09/2023 23:37

Please do not see this as a gloaty thread at all as I promise it isn't meant to come across that way.
I'm from a pretty poor family, saved up and got married and bought a house 10yrs ago. Have 2 young DC. We don't struggle as such but we also say no to A LOT. We went abroad this time for the first time since 2019 and I feel amongst our friends we are seen as being tight (try to avoid rounds, feed our kids at home or take packed lunches etc).
Anyway, I am due to get just over £50k within the next few weeks. This is not inheritance and will not be taxed, but is in relation to something which happened to me a while back.
I know the temptation will be there to blow it. We need a new conservatory, I'd love invisalign braces, I'd love new built in wardrobes and to take the kids to florida. I know that this 50k Isn't a huge amount and will go quickly if I use it on the above.
It's got me thinking there must be better ways of spending it... I'm not sure if that's using it as a deposit to buy and rent out a house, set up a bouncy castle hire business, pay off a chunk of our 200k mortgage or our 20k car finance etc.
I have nobody to ask IRL as we aren't telling anyone about it but I want to make the best of it while i hVe the chance.
If you were to get 50k, what would you do with it?

OP posts:
StSwithinsDay · 03/09/2023 23:39

Pay off any finance apart from mortgage. Put a chunk into savings.

good96 · 03/09/2023 23:47

If you can afford the monthly payments on your mortgage and car finance comfortably - why pay these off now with that 50k.
Bouncy castle business - whilst it is profitable - is it going to get you the most return from your money? No I don’t think so.
Invest in property - put it down as a deposit on a BTL flat. Might not be making much on a monthly basis but keep it for 10-15 years and then sell it on. You could easily double or triple that investment….

continentallentil · 03/09/2023 23:47

As the PP says, pay off any non mortgage debts

save yourself 5k to spend as you will m

invest the rest - see 3 financial advisers for this

I once frittered 40k inheritance (I was in a rough patch) - please let me be a warning to you and do not do this

congrats

MaybeanothertimeNotReally · 03/09/2023 23:48

Pay off debt and then put the remainder in premium bonds and sit on it for à year. With any luck you might win a prize in the monthly draw.

However, if you have benefited from anyone's hospitality then it would be good manners to repay the favour now. If anybody has bought you a drink or a meal then you should do the same for them.

ellenpartridge · 03/09/2023 23:51

If your mortgage is only 200k then 50k would be a great chunk off. Personally I would certainly put some into the mortgage.

AlltheFs · 03/09/2023 23:51

I’d put it in long term investments for my daughter.

DragonFly98 · 03/09/2023 23:52

Pay off mortgage put the remaining £3k into savings.

Lisbeth50 · 03/09/2023 23:56

Pay off debts, buy a new car, book a holiday & save the rest.

TheFireflies · 03/09/2023 23:57

I would pay off non-mortgage debt, get my saggy kitchen floor sorted out, then I’d sit on the rest in savings until my car needs replacing.

I wouldn’t be getting into a single buy-to-let in the current climate.

gwenneh · 03/09/2023 23:58

Finish the mortgage and probably put an extension on the house, enlarge the kitchen and rooms a bit.

SophiaElise · 04/09/2023 00:00

I'd put it in a high interest savings account like I do with whatever is leftover from my salary each month.

Wowokthanks · 04/09/2023 00:00

Tbh, I'd have a look and see what paying 40k of the mortgage off would save you monthly, and if it was enough of a difference I'd do that and use the freedom that brings to do things like Florida and have a more comfortable life.

I'd save the other 10k.

Also just throwing it out there. I dont know, if it's possible that you're receiving this money because you were a victim of some sort (I don't know the correct wording I'm looking for) I'd definitely consider if you might need some counselling or to use the money to help you move on from that sorry its morbid, but on the off chance that you've been through something that means you're carrying around additional trauma, then maybe you need to consider that....though I really hope that isn't the case.

Xmasbaby11 · 04/09/2023 00:01

I would put most into the mortgage, but leave enough for a great holiday. Once your mortgage payments are reduced, you will have more money to enjoy life, too.

MrsPelligrinoPetrichor · 04/09/2023 00:01

continentallentil · 03/09/2023 23:47

As the PP says, pay off any non mortgage debts

save yourself 5k to spend as you will m

invest the rest - see 3 financial advisers for this

I once frittered 40k inheritance (I was in a rough patch) - please let me be a warning to you and do not do this

congrats

I bet a financial advisor will suggest premium bonds. Have several friends in similar situations and they've all said the same.

MintyCedric · 04/09/2023 00:03

Pay off the car finance.

Split the remainder and put half in premium bonds/ISA and use the other half for some of the other things you mention in your OP.

BrawnWild · 04/09/2023 00:03

I would put it away and max out mortgage overpayments.

I dont think you should spend a penny for a year as you are so scattered about how to spend it that you will likely wish youd spent it differently in a years time. Your post and ideas are all over the shop.

ThirtyThrillionThreeTrees · 04/09/2023 00:09

It it were me, I would use:

20k to clear off the car finance

Use the monthly savings on the car repayments to say yes to occasional treats

30k into long term future plans, I.e retirement, children's education etc.

whattodo87 · 04/09/2023 00:16

I would definitely get the braces and the wardrobes as these are things that you will physically see and get the benefit from everyday, and it will only be a small amount of the money.

I think that we don't treat ourselves enough as we see it as a waste of money but if it makes you happy then it's money well spent 🥰

MarshyMcMarshFace · 04/09/2023 00:18

Premium bonds were a good bet when interest on savings accounts was low.

But you can get 6.2% in an NS&I 1 year bond atm.

That’s £3,100 interest in a year. (But if you are a taxpayer and your salary uses your personal allowance, you will pay tax on 2,100 of that interest. You can earn £1000 interest on savings a year tax free. Premium Bond winnings are tax free)

Look at MSE for best savings accounts.

TheGriffle · 04/09/2023 00:26

I would pay off some debt, take our children to Disneyland, finish decorating our house and get new carpets and then put the rest into savings.

ClairDeLaLune · 04/09/2023 00:29

Have an extension to your house. It’s a good investment as you’d get at least the money back when you sell, and in the meantime you can enjoy your bigger house.

MinnieMouse0 · 04/09/2023 00:31

What interest rates are you paying on your car and mortgage? It’s might better to keep in the bank for a while as the interest it will earn may well be higher than what you are paying.

Remember there might be charges for repaying mortgage and car finance early. Usually you can only overpay the mortgage by 10% per year without paying a charge.

If I were you I’d use £10k-ish for Invisalign and holiday then earmark the rest for paying off debt!

Quitelikeacatslife · 04/09/2023 00:32

I'm your circumferences, pay off car loan, put £5k into current account for spending on few nice things, £10k into premium bonds. Set up savings account paying monthly 1/2 of what you were paying monthly on car loan ready for when you need to change car. £5k in to an account for DD
Maybe £10k on home improvements that you really need or pop that on premium bonds too (they are very easy to manage and can withdraw money easily whenever you need it, and they are fun!!

Mountainhowl · 04/09/2023 00:34

Apparently 50k would pay for proton Lazer cancer treatment for my dad, so that. But that's what he said so I'm not sure how accurate that is. If it wouldn't then:

I would pay off my debts (approx 10k incl a family loan)

Take my kids on a UK holiday, and a few days out that are usually out of budget (theme parks, a big zoo etc)

Invest ~10k in my business

Other than that I don't know, it wouldn't be enough for a house deposit on our incomes I don't think, probably put it into something like premium bonds or something else someone good with money will recommend on this thread I'm sure!

WhateverUsernameWillDo · 04/09/2023 00:35

I would do something fun and enjoyable with a little of it, then pay the rest of the mortgage.

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