I've just won 30k - what do I do with it!?

[sundaynamechange123]

Nc'ed, but I am a regular poster - promise!

Before I start I obviously know this is a really nice problem to have, it isn't a stealth boast at all. I've never had this kind of money before and I think I'm probably still very much in shock.

I've just won 30k, this is a HUGE amount of money to me. I'm obviously over the moon, I never win anything and this is more than I earn in a year even before tax. I don't have a clue what I should do with it for the best. I also haven't told anybody yet, I think I'll just keep it between myself and my partner.

I initially thought of doing things in the house, an extension, a conservatory, properly convert the loft etc but my house is ex council and not in the best area. I bought it cheap and only finished the renovations a year ago. I think if I spend more money on it, I won't get that money back when I come to sell due to the crappy area.

I don't feel like I want to sell and use the money towards a bigger deposit as I've only just got settled here and everything is just how I want it.

I'm only 24 so not nearing retirement or anything like that. I don't want to blow it all, I'm generally quite sensible with money. I save my wages well but I don't know what the best thing to do with it is?

I was thinking maybe a fancy holiday would be nice for me and DP when it is safe to do so, but wouldn't want to spend more than 2k on it. I think that's enough to give us a luxury treat, it's not something we would usually be able to do.

What would you do? I don't really know much about investing etc?

Buy yourself a single 30K block of Premium bonds, Mine is currently returning about 1.5 % pa tax free in smaller prizes. PB's can easily and quickly be cashed in if you want the money for an emergency or a future move. Your money is absolutely safe, with the off-chance of a life-changing win .

Mortgage every time.

Congratulations @sundaynamechange123 ! What a fabulous win!

If you're not sure what to do with it then don't do anything for now. Take some time to think and then make a decision later. It's not going anywhere!

Enjoy the money! X

@Trumpton He's done alright hasn't he!

I would pay a lump sum off my own mortgage and if possible put a deposit on a house to let so that when that mortgage is paid off you cluld sell it for your retirement fund !

Don't assume you need to put it all onto your mortgage.

1. do you have a credit card balance, loan or overdraft that's on higher than 0%?
2. what's the Loan to Value on your mortgage? If you are just over one of the boundaries (i think 65%) then overpaying could make a bigger or smaller difference to what they charge you.
3. what's the status of your pension?
4. do you already have 6 months of expenses in cash and/or what is your credit rating?

These are all questions I'd look at before deciding what to do.

The only other thing I'd say is, if selling now allows you to use that £30k to get the house you want before the end of the stamp duty window then why wouldn't you?

I agree don't tell anyone!
2)

That’s wonderful op! Congratulations!

You’ve been so sensible so far for someone of your age and with the strange year we’ve had a potential of weird times to come if set aside a little to splurge

Then put rest on mortgage or towards a house move

If you love your house and don’t want to move in spite of the area (grass isn’t always greener) do the extension

Thank you all for the congrats, I feel completely undeserving and slightly overwhelmed but it's such a lovely thing to happen!

I can't say exactly how as it could probably be outing but as pp have guessed, it's a lottery type thing. I won't be telling anybody. Nobody would say anything to me but I think there would be an undertone of 'why hasn't she treated us?' which I could really do without.

I hear what people saying about prioritising the mortgage lump sum, makes total sense.

About starting more house renovations, I don't think I have it in me! The last year or so has been really challenging getting everything done. Had a terrible time with builders and just tradespeople in general so that's why I'm not eager to start more! I think they see a young, slightly clueless girl and think they can take me for a ride. My house is exactly what I need for right now and no plans to move for atleast the next few years.

Thanks again all

And no, other than my student loan debt I don't have any other debt like credit cards or anything similar.

Ooh lovely. I often wonder what I'd do if I won that kind of figure. Part of me would like an extension and make a lovely kitchen/diner open living space. But like you, I'd never get the money back when selling so it would make more sense to move some day.

I think I'd stick it in premium bonds and have that amazing safety net of knowing I could live for over a year on savings if job went tits up. I guess it could also open up possibilities of retraining or kids education in future too.

I think Id put £2K aside for a treat holiday. Then half onto premium bonds and half off the mortgage

Does anybody remember the lady who took that 'famous' picture of William, Catherine, Harry and Meghan at Xmas a few years ago? I think she sold it for 20/25k and she just took a full year off work and spent it all on her living costs.

I'd be bored out of my mind spending a whole year at home! I don't think she had any young DC either. Each to their own though I suppose.

How lovely for you. I would put as much as possible into the mortgage - they do have rules about the % you can overpay each year though.

If you can't overpay that much, stick it in premium bonds and when you're next looking for a mortgage deal, use it to reduce the overall amount you need to borrow.

So overpay what you can, save the rest to overpay later.

I would be a bit controversial and keep 5k out for a lovely holiday and actually just to have a bit of cash you can play with. I agree you probably don't want to do any more big changes in your house, but just to have enough to be at the shops and spot some gorgeous cushions at £30 a pop and know you can just buy them... Be sensible with most of it, have a holiday and then have a bit of splurge cash.

@sundaynamechange123

Does anybody remember the lady who took that 'famous' picture of William, Catherine, Harry and Meghan at Xmas a few years ago? I think she sold it for 20/25k and she just took a full year off work and spent it all on her living costs.

I'd be bored out of my mind spending a whole year at home! I don't think she had any young DC either. Each to their own though I suppose.

Well on that thought though - are you happy in your work? Have you ever thought about retraining? Doing a masters in your area? It is worth also thinking about things like that which cost £££ and are hard when you're skint.

@JaJaDingDong

In the meantime, while you're deciding, buy premium bonds. You can cash them in anytime, and there's always the possibility your £30k will turn into something bigger.

Best advice so far.

Premium bonds for now to keep it out the way but with almost instant access.

Open up a LISA, you are young enough. Put in the max £4000 a year to get your £1000 govt bonus. You already own a home so this will be a long term investment as you can't get access to it untill you are 60. Well you can but for an exit fee. My LISA is with moneybox it is app based but linked to a proper bank with all the normal financial safeguards.

Congratulations on your win! I would invest it, if you can find a company in your area which does investments. You need to be prepared to lock it away for a period of time, but over several years, it should gain a fair amount of interest. You'd get more interest than with a bank.

How did you win 30k?!

I would use the money to set up a business or an extension for the house

@Palavah

Don't assume you need to put it all onto your mortgage.

1. do you have a credit card balance, loan or overdraft that's on higher than 0%?
2. what's the Loan to Value on your mortgage? If you are just over one of the boundaries (i think 65%) then overpaying could make a bigger or smaller difference to what they charge you.
3. what's the status of your pension?
4. do you already have 6 months of expenses in cash and/or what is your credit rating?

These are all questions I'd look at before deciding what to do.

The only other thing I'd say is, if selling now allows you to use that £30k to get the house you want before the end of the stamp duty window then why wouldn't you?

I agree don't tell anyone!
2)

100% this. Those defaulting to the "pay off your debts" traditional advice are ignoring the fact that debt is at hugely cheap levels at the moment and unless OP has high interest debt such as credit cards using the money to pay off 0% interest debt or a low rate mortgage is unlikely to be as valuable as a 5-10 year investment in the stock market at this point. OP as you're so young I'd consider going to see an independent financial advisor to get some advice specific to your situation. You might have to pay a a bit for the consultation but that will earn itself back. Don't be afraid to ask a lot of stupid questions (which probably aren't stupid). And I'd definitely a) not tell anyone and b) ring fence a couple of grand for a special treat!! Congratulations!!!

Hi op I inherited a similar amount a few years back. I split it so brought a new car as mine was ancient and costing money but a budget new car so not crazy cash. We also went to Disneyland Paris that we had been meaning to do for ages and I paid a chunk of our mortgage (about 10k) and topped up my ISA. The remaining (about 8k) I put aside as I'd thought about retraining and going back to uni in the near future. 3 years on I have just started my course and it's meant i don't need to get a tution fees loan. Just some ideas there!

This is so nice.
I’m really happy for you.
I won this week £ 30 pounds on a scratch card and when I went to collect it I was told it’s actually £60!
I was so happy.
I never won anything really before.
Enjoy it!

Right now I would put it somewhere safe and forget about it. It's what I've done with most of the money I was recently gifted. We paid off our mortgage but had less than 20k left on it.

I don't think anyone's job is secure at the moment and the economy is in such a mess, having a year's salary as a back up makes me sleep much better. Plus I know I couldn't get a similar job at my current salary without some serious commuting which I won't do.

You're young and that sort of security cannot be measured. Maybe allow yourself a treat or as you say a holiday but then forget about the rest.

@Hiddennameforever love that! What a nice surprise, hope you're treating yourself with it!

@LonnyVonnyWilsonFrickett funny you should ask! I love my field of work, but am actually in the process of retraining for a different role within the same field. It will mean that in the future I can earn almost double what I was doing previously as I had already hit the top of my band. It's costing me, but think it will be worth it long term. Slightly more challenging role will keep me on my toes as well.

30k is the exact amount of the postcode lottery for those asking. However, dh and I played for a while, won nothing and chose to stop. The moment we stopped, we won a tenner. Be mindful of playing these types of things

Congratulations! With the current very volatile situation I’d look at combining several of the suggestions above to minimise risk.

Premium bonds are great but they’ve just announced a cut back in prizes. Paying off your mortgage (or any debt) is always a good idea but rates are so low I’d not put all of it into this. Oh and I can totally sympathise when it comes to renovations on the house :)

So if it was me I’d do something like 8k off mortgage, 4K premium bonds, 2k holiday, 10k stocks and shares ISA (across several global well managed funds), 6k in high interest savings account for a rainy day.

Good luck and enjoy the winnings!