Help!! What should I do with my redundancy money

Lokolo

And what people say, and what they do, are completely different.

Sarah1970

tiff wrote: »

Why do you need an income out of it, can you not get another job?

I haven't tried, although I have no doubt I could - the problem being the company that I work for are renowned for paying excellent wages and I know I won't get another job with my skills that come remotely close to what I was getting (probably looking at around 10K a year less!) Therefore if I do get another job 10K a year less then my money won't last me 5 minutes.

OK, so I guess your next question will be......"so why are you taking voluntary redundancy?" Well, the simple answer is that I absolutely hate my job (not the company), the company is making huge cut backs everywhere and there are no other jobs within the company available to apply for, plus there are that many displaced, those that are advertised have hundreds applying with those displaced getting preference. At the end of the day I am not happy in my role and feel its time to try something different.

Sarah1970

bryanb wrote: »

You won't make a living selling beer to locals, no matter how well the beer is kept.

Our town only sells to locals as we aren't that far from Manchester.. so 'non locals' travel there. A number of landlords have traded the same pub in our town for years and years (they must be doing something right)

mr_fishbulb

Sarah1970 wrote: »

No, I don't know for sure, this is the figure the brewery gave to me if it is traded well (going on past books), the trade has deteriorated over the past few years due to bad management and landlords,

It may not be just because of that. In a recession, pubs are the easier things for people to cut back on:

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3491216/One-in-eight-pubs-could-close-over-next-three-years-as-recession-bites.html
http://www.marketrasenmail.co.uk/features/Pubs-close-as-recession-bites.4649438.jp
http://www.thepublican.com/story.asp?storycode=64783

Sarah1970

mr_fishbulb wrote: »

It may not be just because of that. In a recession, pubs are the easier things for people to cut back on:

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3491216/One-in-eight-pubs-could-close-over-next-three-years-as-recession-bites.html
http://www.marketrasenmail.co.uk/features/Pubs-close-as-recession-bites.4649438.jp
http://www.thepublican.com/story.asp?storycode=64783

I know, same with cleaners and luxury items etc - however, as I mentioned I know all the landlords/managers since the pub traded well and without any doubt in my mind it is their faults!!

1 being a serious alcoholic - leaving pub doors open all night, not staffed or manned and letting customers help themselves!!!

1 a heroin addict - need I say any more (taking money out of till to fund habit)

1 a young single mother - never worked a single hour in the pub (employed staff), closed doors Mon-Thurs 8.00pm and regularly had 'private parties' on Friday/Saturday night and closed the pub

Primrose

I think you'd be crazy to get a pub if you've no experience of this trade. Haven't you read that currently about 500 pubs a week are going out of business. What business expertise do you have? Running a pub is as much as having a sense of business as it is about pulling pints and chatting up customers. If you really are that bad about managing your money perhaps you shouldn't be running any kind of business at all until you've changed your financial habits and understand about budgeting generally, as businesses have to be run in the same way as domestic finances if they are to survive. Buy or borrow a copy of "What colour is your parachute", which is a handbook about redundancy, assessing your own skills and the different ways they can be harnessed to earn a living and read it right the way through before making any decisions about next steps. The current average interest on £40,000 at 3% before tax is £1200 so I don't know how you expect to earn an income of around £30,000 a year. Perhaps you'd be better just putting the money in a savings account until your future ideas have been clarified.

Sarah1970

Primrose wrote: »

I think you'd be crazy to get a pub if you've no experience of this trade. Haven't you read that currently about 500 pubs a week are going out of business. What business expertise do you have? Running a pub is as much as having a sense of business as it is about pulling pints and chatting up customers. If you really are that bad about managing your money perhaps you shouldn't be running any kind of business at all until you've changed your financial habits and understand about budgeting generally, as businesses have to be run in the same way as domestic finances if they are to survive. Buy or borrow a copy of "What colour is your parachute", which is a handbook about redundancy, assessing your own skills and the different ways they can be harnessed to earn a living and read it right the way through before making any decisions about next steps. The current average interest on £40,000 at 3% before tax is £1200 so I don't know how you expect to earn an income of around £30,000 a year. Perhaps you'd be better just putting the money in a savings account until your future ideas have been clarified.

OK will do, thanks for the advise :beer:

bendix

I know several publicans who are looking to sell up and get out of the business asap. It's a dying business. Dozens of pubs are closing weekly.

I wouldnt touch it with a barge pole.

I'm inclined to follow Primrose's advice. Stick the money away where you can't touch it, and take some time to assess your options rather than kneejerk into something which could be the wrong thing.

brewerdave

I worked for breweries for 33 years - DO NOT believe any figures given to you by brewery executives on potential t/ver or profits. There are hundreds of pubs now going bust in the UK and the PUBCOS. are desperate to shift leaseholds. Thousands of people have blown their life savings (pension pots, redundancy money etc) on buying leasehold or freehold pubs. The risk is now virtually unacceptable.
Get another job - who cares if it pays £10k less - after tax/NI the drop is not that great and it is possible to adjust your lifestyle to suit your income. I should know having been made redundant 3 times in the last ten years , taking a drop in salary and benefits each time.I'm now on an income which is less than 50 % of what I was earning 10 years ago!!

bendix

Sarah1970 wrote: »

I am not after a 'get rich quick' scheme, all I want is to be able to invest my 40K somewhere and get a decent return of around 30-40K per year.

LOL . . I just noticed this. I'd love to know what Sarah's definition of a get rich quick scheme is!