Windfall of 10,000 - how to spend it?

[Spare10k]

Imagine you have a £10k windfall. You have no mortgage and your ISA is full for the year.

How do you spend it?

It depends on circumstances. If you don't need it and can't think of anything you want to buy and already have plenty of savings then I would gift some or all of it to someone you know who does need it like children or an elderly relative living on the breadline. Or pay for a family holiday. That is what I would do.

I am sceptical about how big charities use their money (look at some of the CEOs salaries) but if you are ok with it or have a favourite charity or a local charity then consider those.

I would donate to a charity like sos children's villages which helps children in the developing world

This is what I advise my dc when they've asked me similar about any extra money they have and can't think of what to buy:

Save it and spend it when you find something you need/want. There's no need to spend the money just because, when you don't actually want anything; it won't run away. Something will eventually come up and you can use the money then.

I used to work for a large national charity and the amount of money being wasted was astronomical. Think big conferences in posh hotels about 'engagement' (despite having an overworked, unhappy workforce - penny didn't drop that just getting everyone into a room and talking about engagement doesn't actually make people engaged if the basics aren't right) that ran into the tens of thousands, I was travelling around the country staying in hotels and eating out with no scrutiny of spend and whether those journeys were truly necessary... the list goes on. And that's not unusual for the big charities where they essentially get free labour (volunteers) and free stock (donations for shops) which means they don't count the pennies like a normal company, that was my experience anyway. So if you are going to give to charity I'd go for the smaller grass roots ones like a local homeless shelter.

Holiday, some cheek filler and I’d have the bedroom redecorated

If this is purely for spending, I would buy a jewellery or invest in a piece of art.

Use it to Lend With Care. Put it to good use over and over, to help entrepreneurs work their way out of poverty in developing countries.

lendwithcare.org/

@IDontHateRainbows - I have young kids. I’m in two minds about cruises.

Lots of votes for holiday - I suppose it’s got me thinking perhaps we do something out of the ordinary. Usual holidays are budgeted for but not something splurgy.

@Seymour5 - I paid into kids ISAs and bought sister large household appliance to replace something she couldn’t currently afford to do.

@Cornishclio @HollyLollyMollyJolly - I too worked for a large charity with 1000s of employees and yes indeed on corporate waste and inefficiency.

There is a body who assesses the efficacy of charities and their % spend on doing good - should look that up to remind myself. There are lots of local efforts where £1k to £10k would make a difference.

Love the jewellery & art suggestions. My wedding& engagement rings cost less than £200. I don’t have anything expensive like that. We do have some nice art but nothing splurgy so perhaps an idea to set money aside to say yes to right thing in time.

@Bjorkdidit - not a fantasy. Problem is when you are parsimonious towards yourself when building wealth - you get out of habit of spends that aren’t toward goals. Suggested to partner to spend £1k for splurge and he thought new TV, our current one is from 2011 but he couldn’t justify another as current is good quality. Computer is older but he updates it so can’t justify new one at mo.

I am generous with others and have enough for myself. It’s nice to widen thinking or help loosen up on spending. As there is little I want I suppose i wanted inspiration.

We’ve done incredible holidays before which I value but with young kids ambitions are curtailed.

Pre kids - could easily spend it on long trip to NZ or somewhere like Maldives (with fewer political issues).

If you are normally fairly frugal and it sounds like you are if you have a 14 year old TV and inexpensive jewellery then spending money unnecessarily can go against the grain.

We are early retired now but any windfalls we had through our working life and more recently we split three ways. Short term, medium term and long term. Long term investments were made into pension, stocks and shares USA or overpaying mortgage. Medium term was saved for long haul holidays, new cars, new kitchen or bathroom and short term usually a new tv/bed/furniture. If we really didn't need or want anything we would save it until we did. Now we would give to our adult DC.

Saving money is all well and good but no harm in treating yourself every now and again. Maybe as it is a windfall you should spend it. How old is your car? Is your mortgage paid off?

What about a quality watch?

I've had the same one on my wrist for over 30 years and every day it makes me happy looking at it.

Our bedroom is dire, so I'd definitely use some of it to have new fitted wardrobes etc. There's a few other things round the house I'd like to finally sort out as well.

I'd rather do that and spend time in a house I really love every day, than come home from an expensive holiday to the house still looking tired and depressing.

I'd earmark part of it for a family holiday and then

EITHER: buy a piece of jewellery with the rest of it.

OR: renovate my lounge

With all those parameters? Trip of a lifetime to South America, it's £8k each the itinerary I'm currently dreaming of (pipe dream of course!)