What to do with 50k?

[sparklealways]

I am soon to be coming into a big chunk of money - around 50-70k.

I have no idea what to do with it. Looking for investment ideas/ tips.

My current situation is mother of a young family (pregnant and toddler) in happy relationship but not married.

Small business own and stable income of around 40-50k a year. Currently no savings, few grand in the bank.

Live comfortably in rented home. Not loads of spare cash right now but all basic needs met plus few extras (lunches clothes etc)

I own a property worth 250k with a mortgage of around 150k. I saved this money working hard as a stripper (not proud) in my younger years. This property brings me rental income.

What should I do with this big chunk of money when it comes????

Do you want to buy a property to live in?

Put it towards your current mortgage or buy another property to rent out

At least 3 months cash in an easy access savings account. You mention business. If self employed, more like 6 months worth of spending.

Going through this flowchart can be useful.

ukpersonal.finance/flowchart/

I would say that things you will likely do are:

Emergency fund - 6 months of expenses.
Any planned large expenses in the coming couple of years... money in savings account.

Stocks & Shares ISA, £20k.

Child Junior ISA, up to £9k to get that started.

You might look at overpaying mortgage for a while, up to point that lender charges a penalty - you don't want to pay penalty fees.

Pension - add more to that.

If that has not used it all, then repeat next tax year: ISA, Junior ISA, Pension.

My personal choice would be to pay off a chunk of the mortgage, but that is because our interest rate has rocketed and it is a struggle atm. Maybe consult an independent financial advisor?

Is there any reason why you’re renting a family home but have a btl separately? What is your partner’s position re property? Do you plan on marrying? how are you funding future mat leave?

I think the answers to those questions would shape my answers re what to do as your set-up currently feels very separate.

I'd probably put it on the mortgage (we are interest-only, but it still represents a saving, especially with high interest rates). Just check that it's a higher interest rate than any you could get from an ISA etc.

@Bunnycat101

Because the place I own is not big enough for a family of (soon to be 4)

I honestly don't know if we will marry. I hope we stay together forever but not sure I believe in marriage tbh. I've always been very independent and not sure I need a contract to validate our relationship.

I will only be taking a short mat leave and will have government mat pay as I'm a business owner. The nature of my work means I can fit it around babies.

I also lent my partner 10k which is (hopefully) coming back to me soon which I have earmarked as maternity savings

I suggest that you put the cash into a shoe-box and pop it under your bed.
(Perhaps in the front bedroom?)