If you were about to be poor, what would you spend your money on now?

[TargetPractice11]

To make life easier when your income drops?

We have some savings that can be spent on things that will save money in the long run get term.

I've just bought a slow cooker, for example. And I'm thinking about getting our windows upgraded to save on bills.

Good quality outdoor gear. Especially if you end up giving up the car to walk or cycle more.

I'd not make any big purchases. I'd save the money in premium bonds hoping for a big win!!

I wouldn't spend it, unless it was to retrain. I would wait to see what was needed.

It depends on how much obviously but in roughly descending order

1. Pay mortgage off or down to bring monthly cost
2. New boiler
3. Prepay netflix or similar for a year so you have something to do in the evening

Set up a budget and allocate money for annual spends on a monthly basis. We use YNAB which has an annual subscription of about £100 a year but saves a fortune. There is a month's free trial and DM me for a referral code if you want one.

You could do the same with a spreadsheet though, just a bit more fiddly.

I was going to say a decent winter coat and some good shoes.

But if we are talking window levels of spend that sounds a good way to keep the house warm.

I'd want a boiler fund to remain if I was in a position to have one.

Put some money away for Christmas.

If your car insurance is due for renewal, pay it in full, always cheaper.

Set up various accounts and put money in each one. So figure out how much you'll need for birthday presents. Haircuts, clothes and shoes. Emergency repairs. Etc.

I’d keep it and use it to supplement my income when I was poor.

I assume you're trying to drop your savings below 16k to claim universal credit? They'll go through your bank statements and disallow your claim as you're depriving yourself of assets on purpose.

If this is purely theoretical I'd buy a bike and outdoor clothing.

Heated airer to dry clothes, and heated throw so I wouldn't have to use central heating very often.

Can you give more context for this? On the face of it, the idea of spending savings in anticipation of your income dropping doesn't make any sense.

I'd stock up on long life groceries and supplies.
Bulk buy toilet paper, tooth paste, cans of food etc.

A chest freezer. Our house is well insulated though. If we lived in our previous house, warm clothes and blankets. I'd stop spending now on whatever extras I could and try to keep/add to savings where possible. Our appliances are in good order, as is my bike.

It does because when you're living off savings you lose the ability to buy things that need repairing such as the boiler.

@Tommeetippee

If you have enough money to replace all the windows in a house then that money could've been kept to cover all types of unexpected costs.

Replacing a working boiler just in case it breaks in a few years isn't great financial planning.

Honestly i would not spend it except on reducing a mortgage if its on a high interest rate, or paying down other high interest debt.

You don't know what you'll need, and in reality, you can manage without most things except money. Pretty much anything you buy has a resale value of half what you paid. For example you might buy a bike, and find you really need money for food, and end up having to sell the bike only to lose half what you paid.

The only rationale i can see is trying to spend savings to get under the UC savings cap. Don't even try, it will be obvious unless you do it very slowly over a long period eg by regular mortgage over payments every month for years.

I agree, but replacing a 12-15 year old boiler this summer makes sense because it's only a matter of time before it packs up. It strikes me as deprivation of assets to make a UC claim though.

Good all weather gear

Good quality shoes for work / school. DDs feet have stopped growing so I always buy a couple of pairs of Clarks Hamble Oaks when they go down to £17 on Amazon

School uniform in the next size

Stockpile staples cleaning stuff / cans / buy an additional chest freezer and fill it up.

Heated airer

If drying clothes in the winter is likely to be an issue then buy technical material clothes and fleeces that are quick drying rather than other materials or wool which takes forever.

Oodie or oodie style jumpers to keep you warm in winter

It does because when you're living off savings you lose the ability to buy things that need repairing such as the boiler.

The point of savings is you keep them there (earning interest) then replace the boiler when it breaks. Not that your replace a working boiler now in anticipation that an older one might break.

If you're going to be reliant on benefits, it's a bad idea - they'll treat you as still having the money for anything that they deem to be unnecessary, and bought to deprive you of capital.

If you're just going to be "poorer", I'd save the excess money to be able to still afford some meals out/days out/holidays in the future, when it's feeling really bleak.

I’d keep as much as possible so when things do unexpectedly go wrong you have the means to pay without getting into debt.

If you are on a minimal income I would start shopping at the supermarket at closing time or go on the app that helps you buy just in date food at low cost.

I would also start looking at ways to increase your future income stream - additional jobs? Review and get rid of any subscriptions you don’t need to reduce your future costs.

@Tommeetippee

I agree. That's why I asked for context. If op said 'my transitional protection is going to end and I have £50k in savings' then that's a different question.

We have a 30 year old boiler that’s still going strong! Have it serviced every year.

Solar panels to minimise future bills, pay some money off on mortgage, winter coats and good quality outdoor gear, bikes, make a big veg garden.

Lower my monthly outgoings as much as possible. So pay any debts and a chunk off any mortgage.