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What to do with extra $25k

I have an extra $25k in the bank that I came into unexpectedly. Some people say I should put in on my mortgage, but I'm only paying 3.55% so it seems like a waste... suggestions? P.S. I'm in canada

Comments

  • Jacka87
    Jacka87 Posts: 369 Forumite
    Part of the Furniture Combo Breaker
    you could always send it to me, I know what I would do with an extra 25k, if its canadian dollars or not!

    In all seriousness, there are 3 options.
    1. Pay towards mortgage
    2. Save it in the highest rate account possible
    3. Spend it and live luxury life for 6 months or so!
    Personally I would not be doing the 3rd option as I am too serious for that, tho maybe using some of it for a holiday or something cant go wrong, say a couple of k for a hol with the oh or kids depending on your circumstances.

    Between option 1 & 2 is just straight forward maths in my opinion. Work out how much it would save you to pay that amount off the mortgage and how much it would earn you if you invested. Basically, what rate are you paying for your maortgage and what rate are you getting in savings. Whatevers higher is where the money goes. To be careful if you save then make sure as rates change you are ready to move the money from your savings to the mortgage, cos at some point the mortgage rate is likely to be higher than the savings, if its not already!

    Oh almost forgot stick the lot on red/black (choice of colour is all yours). After all you wont miss 25k you never had but having 50k well thats a good holiday after paying off some of the mortgage!!!
    Here to help and be helped!

    New to MB, running profit, £16 from MB, £30 cashback!
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