Would you go for short term cash? Poll Discussion

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Comments

  • fagun
    fagun Posts: 411 Forumite
    Bit of a nerdy post, but the Building Society Association did a survey a few moths ago on people's saving habits - this survey's results and the posts above reflect their findings very well.

    http://www.bsa.org.uk/feature/SavingDecision.htm
  • Lozzie_2
    Lozzie_2 Posts: 7 Forumite
    I'm new to money saving expert, but I think I'd definitely go for the £10,000 now! If I get hit by a bus in a few months time, at least I'll have had a bit of fun! I definitely don't want to wait 10 years!
  • charis18uk
    charis18uk Posts: 447 Forumite
    Being in no debt and with a small amount in the bank and my mortgage fixed for the next ten years I would go for the ten year option and plan to pay my mortgage off at that point. I'd still be relatively young, with my child due to go to university and it would just fit nicely.

    Having the smaller amounts now would be a disincentive to save and be fruggle.
  • krazykidskate
    krazykidskate Posts: 1,958 Forumite
    First Anniversary Combo Breaker
    I voted for 20k in one year but after giving it more thought (and reading wiggers post) I would go for the 100k option

    I'd then borrow the 10k now so in ten years time I would also get the difference between the 100k and the interest i owed on the 10k loan.

    so 10,000 now and another 75,000 in ten years time
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  • crumple
    crumple Posts: 7 Forumite
    100,000 is equivalent to less than 10,000 for each year of the ten and after ten yrs, with inflation, will be worth less :confused:.
    Bank - cast iron guarantee: could this be used as equity to release monies now, invest [wisely] and in 10 yrs time be worth more than 10,000
    [IMG]file:///C:/DOCUME%7E1/r/LOCALS%7E1/Temp/moz-screenshot-1.jpg[/IMG][IMG]file:///C:/DOCUME%7E1/r/LOCALS%7E1/Temp/moz-screenshot.jpg[/IMG]
  • Former_MSE_Archna
    Former_MSE_Archna Posts: 1,903 Forumite
    First Post
    This is a fascinating result, quite deliberately I did two polls five weeks apart that were almost the same except the monetary values were multiplied by 100. The difference in results is startling.

    THE QUESTION FOR BOTH

    You've just won a bank's competition (hopefully without having to dial a premium rate!). You're offered a choice of prizes all with a cast iron guarantee that they'll be paid out. Which of the following options would you pick

    THIS WEEKS RESULT (THE HIGHER VALUE)

    E. £100,000 in ten years
    37% (4431 votes)
    C. £20,000 in a year
    34% (4031 votes)
    A. £10,000 in cash now
    15% (1853 votes)
    B. £15,000 paid to you in 6 months
    8% (989 votes)
    D. £40,000 in five years
    6% (692 votes)
    Total Votes: 11977

    COMPARE THAT WITH THE RESULTS OF THE POLL FROM 15 MAY 2007

    A. £100 in cash now
    37.8% - (2324 Votes)
    C. £200 in a year
    30% - (1848 Votes)
    E. £1,000 in ten years
    21.1% - (1300 Votes)
    B. £150 paid to you in six months
    8.9% - (550 Votes)
    D. £400 in five years
    1.9% - (118 Votes)

    Total Votes: 6140


    It seems that with less money the short term cash wins out, the bigger the amount on offer the longer people will wait.
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  • cazrobinson
    cazrobinson Posts: 177 Forumite
    i would go 20,000 a year, with interest buidling up it would be worth more in ten years time.

    but, i would proberly spend it on looking after the house, children, nice holiday!!!
    What goes around - comes around
    give lots and you will always recieve lots
  • Mics_chick
    Mics_chick Posts: 12,014 Forumite
    Yeah the difference between the 2 polls is very interesting - basically 1st & 3rd places have switched around... I wonder why this is :confused:
    You should never call somebody else a nerd or geek because everybody (even YOU !!!) is an
    "anorak" about something whether it's trains, computers, football, shoes or celebs :p :rotfl:
  • skylight
    skylight Posts: 10,716 Forumite
    First Post First Anniversary Combo Breaker Home Insurance Hacker!
    november wrote: »
    100K in 10 years for me. By that time the children will be well grown and fled the nest. We could pay off the mortgage with plenty spare, buy a camper van and go off to have some much deserved R&R.


    Exactly what I would do!

    Wouldn't tkae 10, 15 or 20 as we owe so much money, this would not touch the sides.

    However, after 10 years, the majority of debt will be gone, and then would have left the nice big sum to come.

    I would have to invest it then though, as we would still have to wait a further 10 years after waiting the inital 10 years as the youngest child would only be 10 anyway and not old enough to leave whilst I travelled the world!

    Basically I am young enough to look at long term security rather than short term gain.
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