Inherited £10K - what to do with it

Miss_Moneysaver

Hi,


I haven't started a MFW diary yet as I am only working part time at the moment but may be increasing hours (trying to change location of job due to 2 hour daily commute). We have paid childcare for 11 years and things are looking good on that score now that the eldest has started secondary school.


Anyway, I have inherited an unexpected £10K. What should I do with it? I don't want to pay it off the mortgage but was thinking of keeping it in the savings pot as we have an offset mortgage with the Woolwich (low interest). Or, would an ISA be better?


We, actually, have a 25 year endowment due to mature in about 17 months so I was thinking of waiting until then to lump it all together and see what is the best thing to do. Endowment should make about £30K. I stop paying car payments in July 2016 so I was going to increase mortgage payments up to £1000 a month (currently pay £730). We owe around £55K at the moment (plus £30K for home improvements). I want it paid off ASAP! Any advice??

Miss_Moneysaver

Mr Moneysaver works full time but I am the higher earner. 2 children (11 and 7).

Dalradian

Do you have an emergency fund to cover replacing a boiler or loss of work for a few months? Or any credit car debt or loans that need paying off? I would start there.

Luckyinlife

Personally id keep it as an Ef or at least most of it and cushion for when your mortgage can be payed off with it then starting to save for the EF straight after it

sounds like you'll have more money next year so id defiantly wait till till your endowment pays out

in the mean time stick it in high interest accounts current accounts are best for safety

I dont know how you feel now but i always feel better when i have a good sum in the bank as a safety net