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?

Everything's coming up roses for you OP! If the retraining is costing you, I'd be tempted to keep some cash back for that so you don't have to go into loans or whatever to pay for it. Or if there's additional training you want to do on top that feels like a 'someday' option you could do it in a couple of years using the cash.

Sensible chat aside, I do hope there's a nice bottle of champagne in your fridge for later!

I mentioned LISAs up thread but realise not many know about them. They are available for 18-39 year olds and the govt give you 25% bonus of whatever you save + tax free interest. You can save a max of £4000 a year so £1000 bonus + interest up to the age of 50 and then can access it either at 60 or to purchase your first house. I'd definitely siphon off some of the money each year to use my full allowance, who doesn't want a free £1000 from the govt.

Wow that's great congratulations! I've already thought about what I would do with that money as I listen to the heart radio in the car where people sometimes win around that amount. I would pay about 10k off my mortgage, get the back garden sorted, have a nice holiday and just put the rest in our savings for when we have a baby hopefully soon. I feel like I need to put the lottery on/buy a scratch card now!

Oh that's fab, I'd take £5K and have a really lovely time, holiday, clothes, trips out etc and put the other £25K on the mortgage.

Congratulations on your win!! Sounds absolutely lovely, especially whilst times are so hard. How nice it must be to know you won’t fall through the cracks during Covid, we’ll done OP, big congratulations!

If someone gave/I won 30k, I would probably put 15k away straight away, if I’ve learn one thing it’s that no matter how much savings you have, it’s not enough during a pandemic!

I would then spend 2k on holiday and blow 3k like no tomorrow, you got to enjoy yourself too.

The other 10k is what is he debating, maybe 5k in some kind of investment, although I don’t know what, and the other 5k would probably be for mortgage/debt/driveway maybe, although not sure really.

I definitely blow 5k on holiday and shopping and 15k away for a rainy day though.

Congrats! Consider very carefully - mortgages have incredibly low interest rates at the moment so that might not be the best place to ‘invest’ as the loan is the cheapest you’ll ever have. Also you might get penalised for paying a lump sum off so always check that. You might do better to invest it and then use it later. Maybe go see an FA

Premium Bonds perfect in the short term.

You might treat yourself to considering any winnings on the Premium Bonds as spending or 'mad' money. That way, you have some 'fun' but still keep the capital.

Next thing to consider medium term is how to get the best value from your capital. If you are paying off a mortgage, you might struggle to find any investments which pay as much as, never mind more than, your mortgage without significant risk.

Find out any penalties to pay off your mortgage and factor that in. Work out how much you would save on interest payments if you pay off the mortgage early again, there may be penalties to factor in.

You might be surprised gobsmacked to discover how much you save In which case there is your answer.

Once the mortgage is paid off, you can direct the savings into your pension.

It's all good.

The odd thing is that once you have some money, the chances are that any 'events' you experience will end up with you getting more money. Eg win on Premium Bonds.

If you have no money , you are more likely to experience things that cause you to spend. Congratulations. It might be that this win is already that rule coming true, after your work to retrain for a different role. Life might not be fair but you are now ahead of the game. Good luck.

p.s. you might consider giving a small amount to the local food bank or other charity, too.

I wouldn’t necessarily choose a LISA over a SIPP for your pension OP, as you already own a house. Money saving expert website has a good comparison of the two wrappers as a pension tool. Also employers pension is normally best as first port of call to make sure you are getting the match.

SIPPs give me the fear but I think that's because I see too many go wrong in my line of work.

I won a large sum a few years ago, I cleared my debts, I had 2 amazing holidays, I learned to drive and I bought a house. I think a balance of fun things and sensible things is the best way to do it.

If you work out quite quickly that paying the sun off your mortgage is the best way to go, get on with it!

Premium bonds don’t become ‘live’ for a month or more after you buy them, and it takes a while to cash them in.

I would think paying off your mortgage will be well worth it in the longer term.

Congratulations!

I would do the following:

• Put £3k in easy access savings
• Spend about £2k on an amazing holiday
• If I needed a car, something for the house/garden, or anything else practical that would make my life or quality of life easier, I'd buy that (but wouldn't just buy for the sake of it if I didn't need anything)
• Use the rest (£20-25k?) to overpay the mortgage

Then I would look at my monthly budget and with reduced mortgage payments I would pay the difference into a pension. (Hopefully you already have a pension?)

I would tuck it all away for now and carry on as you were doing. That way it’s there for the future and if you can manage on your existing salary then why whittle away your win. Congratulations I’m very pleased for you - it will give you some degree of security as long as you don’t waste it.

Ask a financial advisor, put 10k into a pension and you'll get 20% tax relief so your 10k will be worth 12.5k put more in if you can, you'll instantly make 20%, iv just done this, then treat yourself

If you do pay some off your mortgage and the house is jointly owned, make sure that it's protected. You don't want t9 split some years down the line and lose half of it.