What would you do if you suddenly received this sum?

[Yomjl]

I’ve been gifted 45k. I have an outstanding mortgage of 285 (which is 45% of house value). I do have a decent income currently (4K after tax) but have big childcare costs. What would you do?!

What's your pension like?

Most people can only overpay 10% of the mortgage balance per year. So over two years I'd use the money to pay off a chunk of the mortgage.

Pay off any debt.
Have a lovely holiday abroad - life's just too short to be 100% sensible.
Put £20k in a S&S ISA.
Put the rest in a high interest savings account.

Have you got any debt other than the mortgage?
Do you have a savings account with 6 months living costs in it?

I'd splash some of it, but secure my basic finances first.

Deffo Premium Bonds. I have the full amount and I win £100s most months 👍

Put some into my pension. Are you over the threshold for HRT? Your pension contribution will bring that down and also your contributions are grossed up at your highest rate of tax too. There is NOTHING as good as a pension wrapper, but you can’t get at it until you’re at least 55.

And 6 month’s outgoings in a tracker ISA for emergencies.

I also might get my tits and teeth done if I’m really honest.

I'd increase my salary sacrifice pension contributions and make up the shortfall in take home pay from the windfall.

A beach hut or a campervan for me!

I would either put it towards a new house or improve this house.

If I didn't have to do either I would go on an amazing holiday, put more money aside for the kids and just have some fun spending it whilst keeping a bit aside in savings.

Check you annual overpayments on your mortgage and do that per year, mine is at 10%. Put the rest into a high interest fixed bond and ISA and move across per year to pay off the mortgage. That’s all I would do with it as I’m trying to clear my mortgage as quickly as possible.

New car. Big Holiday. And the rest in pension.