What to do with an extra £800 per month

vegas78

Hi,

I found myself in a very fortunate recently - following numerous changes in my outgoings, I will be earning an extra £800 per month. I want to ensure this money is spent wisely, so need some advice please.

I currently am a single guy, a homeowner with no credit card or loans outstanding.

My thoughts were to either:

a) Splash out on a flash car - indulgent I know!
b) Buy a second property and rent out. But prices seem to be coming down and down....
c) Invest elsewhere
d) Save
e) Make over payments on mortgage.

I do enjoy living for the day, but also I want to ensure whatever I invest in I get the best return for my money.

What to people think? This is my first ever post.

Thanks

fullstop

Welcome Vegas :

Well I would give a and b a miss c, d and e would by my choice.

SacMac

Hi Vegas,

I think I'd put it all into my mortgage (although the flash car is very tempting!!)

brightonman123

you could 'lend' it to me- i wont pay you back, i must warn you now- just in case you claim quelle surprise, later on.. lol

sabretoothtigger

I would say E personally but mortgage debt is cheap currently so a sturdy investment till debt is expensive might be better.

Do you have a pension setup as 800 net after income tax would be closer to 1000 gross when added to a pension afaik, sounds about the best return to me

vegas78

What kinds of investment do people recomend? Im pretty cluelesss to be honest. I have both a strong shares and pension plan so that is covered.

Thanks

opinions4u

See 2 reputable local IFAs and sign for nothing.

Reflect on their advice for a week and pursue the options proposed by the one that makes most sense to you.

There are dozens of different options for you out there, and maximising pensions and ISAs for their tax benefits, regular saver accounts (e.g. Barclays, Halifax) for their high fixed rates in the current low rate environment and reducing debt are all good ones.

This is a great opportunity to make your life financially rewarding in the long term! Get the best professional advice you can.

tweet

Since it's an unexpected chunk of money you'll have each month why not split it up and have a little fun with it, after all it doesn't sound like you're on the poverty line and supposedly money is linked to happiness

How about 500 in a savings account, 100 off your mortgage, 100 in to an account for your wedding/kids college fund(!) (sounds silly now but in 5 years thats £6k and you'd hardly notice the 100/mo) and just enjoy the final 100.
Sure it's good to save but where's the fun in saving 100%

Of the 500 in savings considering you sound young and the stock markets are dire currently I'd consider putting something like 200/mo into some kind of tracker or uk/asia fund and forget about how it's doing for the next few years, the other 300 just in cash. Always good to have cash, especially with prices dropping on everything you could find yourself in a position to get a good deal on something.

Let us know what you do.

GLN

I would make overpayments on your mortgage... your will be paying less intrest in the long run.!!

BritRael

I've been in the same position for a number of years and went for e. But, I purposely had an interest-only mortgage which had no penalties for over-payment. For what its worth Vegas, its a great feeling when you make that final payment. I was buzzing for a week!
Funnily enough my 'a' is a yacht. and although I could now afford to spend 50k+ on one I always seem to find more reasons not to than to go ahead Already done b (may again) and constantly go for d.
Good luck.

robpw2

alliance and leicester regular saver offering 12% intrest in first year

sorry wrong bank