Redundancy money

[moneydebtmatter]

NC for obvious reasons
I’m being made redundant and will get a lump sum of redundancy, notice pay and some extra bits

does this sound like a solid plan to not waste it while doing some bits I need/want?

Essential stuff - pay off overdraft and credit card plus some other small debts as well as a payment to apartment management company (deficit for the year) - frees up £160pm as I won’t have payments for them

Needs - buying a bed and getting my car AC repaired (it’s been broken for 4 years…the car!)

Wants - work clothes (M&S, not going £££) and having a random lump on my face removed!

everything left I am saving which will be about 1/3 of the money

Definitely a good idea to clear any debts and management fees as you won't have a monthly income to pay it from. Personally I wouldn't buy a new bed until I got a new job. A couple of work outfits might be a good investment though.

Oh sorry I thought I had put that! Not out of work, I start my new job the day after I leave my old one
more fuel costs - £80pm but slightly higher pay and obviously I’ll have cleared the debt so money saved is still £80pm

Whatever you decide with your slightly extra pay and the debt saving you should start putting money aside as an emergency fund to pay for future car repairs etc.

I’ve actually managed to get the “wants” - work clothes from vinted which has been brilliant
got trousers, tops and a smart coatigan for under £40 a pair of brand new shoes for £20

unfortubately some of it is going to have to go to paying off a loan which I’ve had to take out to get a wisdom tooth removed but I’ll still have some left to save

I am prioritising paying off the debts

Sounds like a good idea OP.

I was made redundant at the beginning of the year. I decided to pay my council tax and service charge for the next 12 months using the redundancy money. This helped me budget for the following months, plus I reined in spending after seeing that chunk go out.

I also applied for contribution based job seekers allowance while I was job hunting.

Yeah if I didn’t have a new job I would definitely do it slightly differently

The day after you are made redundant
Suggest claim " contributions based job seekers allowance" , it is approx £80 per week & is not means tested until a certain time period.
Importantly your National Insurance contributions will be paid while you are not working & go towards your state pension & other benefits.

Update CV

Good luck

https://www.gov.uk/jobseekers-allowance

Just bear in mind tax implications that may take you over usual tax bandings and make sure you set aside for that. Also if feasible, offset tax by putting some in pension.

First 30k of redundancy money is tax free

I’ve got a new job so no need to claim

Min wage worker, I definitely won’t be anywhere close!