Best way to use a £25000 windfall...?

ronaldadio

I only take £150 a month off the older two.
I just noticed, 2 have good jobs (£20,000 + pa)
The 17 year old is still in education - costs us £5,000 pa to get him back and forward.

I think the fist step will be to meet with a Financial person after New Year to see if we can get a house.
Put the money into some kind of savings accounts, probably for 2 years while we continue to rent.

Then use that to put down on a deposit.

I now run a day by day spreadsheet to monitor the expenditure.

I'll let u know where we get to.

Thanks for your advice all

colsten

Do you and your spouse qualify as first time buyers? If so, both of you might consider an HTB ISA with Halifax. It only would make sense if you can get a mortgage on a property.

http://www.helptobuy.gov.uk/home

atush

150 a month is too low IMO. that is less than 40 a week. I am sure you are operating at a deficit there. And you said they all had good jobs at first, not that one was in education. Of course you would not charge them.

And the older ones are earning 20K PA. They can easily save even if paying you 200-240 per month. Mine did. So raise their rates Jan 1st?

ronaldadio

Thanks for the new comments.
Quick one.
Looks like we will get the money next week - around £35k.
We will not have time to sort this out til after New Year due to the nature of our jobs, but at the same time I want the money to work straight away.
Any thoughts?

colsten

ronaldadio wrote: »

Any thoughts?

Which of the thoughts you already got in abundance aren't good enough to get on with what you want to do with the money?

ronaldadio

colsten wrote: »

Which of the thoughts you already got in abundance aren't good enough to get on with what you want to do with the money?

I'm on about a quick, short term thing.
I am up for putting the cash into various accounts as suggested, but I won't have time to sort that out for about 2 - 3 weeks due to work.
We will have the cash Monday/ Tuesday next week. It would be easier initially to put it all into some kind of savings account.
Unless u guys think that just leave it in my Barclays account for a few weeks?

colsten

In all honesty, maximum interest for £25K or £35K or however much in that region for 2-4 weeks isn't a lot of money. Which is probably why you don't drop everything when you get the money. There is no urgency.

Aside from that, if you had actually taken in the suggestions you already had, you could probably have set up sufficient of the best accounts to take your £25K as and when it arrives.

Please do read back over the comments people made in this, and in the previous, thread.

redux

ronaldadio wrote: »

Thanks for the new comments.
Quick one.
Looks like we will get the money next week - around £35k.
We will not have time to sort this out til after New Year due to the nature of our jobs, but at the same time I want the money to work straight away.
Any thoughts?

You can open most of those decent interest bank accounts online in a few minutes each, outside working hours like right now, even before the money arrives, then faster payments transfers into them when it does.

kangoora

ronaldadio wrote: »

I'm on about a quick, short term thing.
I am up for putting the cash into various accounts as suggested, but I won't have time to sort that out for about 2 - 3 weeks due to work.
We will have the cash Monday/ Tuesday next week. It would be easier initially to put it all into some kind of savings account.
Unless u guys think that just leave it in my Barclays account for a few weeks?

For a quick fix open a santander 123 account, takes 20 minutes online unless your prior bankruptcy complicates things. Transfer your direct debits paying cashback to this account so the monthly fee is offset. That will get you around 2.4% after tax on £20k. Make sure you fulfil the conditions for transferring money into it, hint, it doesn'thave to be salary, an SO from another acount is fine.

Then you can take some time looking at the better rate current accounts, you can do better than the 123 if prepared to set up a few accounts.

enthusiasticsaver

£25000 is a lot of money but to be honest at yours and your wife's ages you will struggle to buy a house unless you are living in a fairly cheap area. At your level of income I would have expected you to have considerable savings or assets. As you don't then presumably you have high outgoings.


On a temporary basis I would put the £25k into high interest current accounts and then prioritise what is most important. If you want to buy a house though you will need to look at outgoings and then prioritise spending better. Same with a pension in that it is better late than never if you really have nothing but you have a lot of catching up to do.