Best way to use a £25000 windfall...?

joe_mcclaine

Funniest thread I've read for a while.

I'm expecting another "what should I do with my £25k" post in 3, 2 ....

ronaldadio

Thanks for the replies.
I'll go down the current account route as soon as the money arrives Monday/ Tuesday.
As far as buying a house, we really could not for two years due to rental, but something we will look at now to find out of it is possible based on all stuff mentioned.
To the people that are making fun or having a pop, most recently Joe McClaine...
None of you would EVER be able to do the job I do. However, if someone needed help, no matter how often they asked I would not knock them or make fun.
I set up another thread as I could not find the first one and this one was posted because the £35,000 had reduced to £25,000 - based on advice given by people here.
I AM NOT a financial person and this is our last chance of some kind of stability after being done over a few years back by 3 people who were supposed to be friends.
I hope what I had to go through does not happen to any one.
To all the people that have helped, thank you.

atush

Sorry you were in a hard spot and making our way out. I however did not denigrate you, just gave my opinion as to your debt/overspending.

Because unless you get to grips with that ASAP 9faster than looking for where to stash the cash) in a few years all the 25K could be gone down the same road.
So, make a start with spending diary, SOA on debt free board, raise the rent for the working sprogs, and tell us now how much you spent each month repaying the debt now gone.

this amt should be put into a pension/savings/investments. Boosted by increased income from rent, and lowered outgoings

ronaldadio

atush wrote: »

Srry youwere in a hard spot and making our way out. I owever did not denigrate you, just gave my opinion as to your debt/overpspending.

Because unless you get to grips with that ASAP 9faster than looking for where to stash the cash) in a few years all the 25K could be gone down the same road.
So, make a start with spending diary, SOA on debt free board, raise the rent for the working sprogs, and tell us now how much you spent each month repaying the debt now gone.

this amt should be put into a pension/savings/investments. Boosted by increased income from rent, and lowered outgoings

My comments were not directed at you.
I have an excel spreadsheet now that lets me know day by day, week by week and Month by month where we are or should be for 12 months in advance relating to spending. TBH, that is now starting to get in control. By paying off old debt and cancelling some things we will be saving £700 per month
However, this has not been easy.
As far as the kids are concerned, my daughter moves out in March, so I won't do anything with them for now as she has just bought a house and are doing it up. I feel the amount they have been paying is my fault. I'll review this with my eldest son once she has moved out .
I'll probably use this for the investment stuff http://www.bankaccountsavings.co.uk/ can't remember how I got this - either from here or by doing a search. Seems decent?
I think my main problem in this forum and my posts is that I've been overthinking stuff. Now I feel I have enough info to go forward.
Thanks again for all your help

atush

If you are au fait with excel then you are on your way.

Budgeting is I feel your way out of your financial situation, although i feel resistance in your attack on this with both overspending and income from the well earning sprogs. The fact that you have already found 700 in savings to boost your situation just shows why/how we were all concerned.

Can you do the diary and find more savings?


but I do wish you good luck in future.

ronaldadio

Quick question about paying off some of the debt...
Load to Mother paid, credit cards will be paid off - obvious I guess.
About £2,500 does not incur interest due to arrangements being made. However, it does mean our Monthly outgoings are an extra £160 by paying these off.
I think I would prefer to 'clear the decks' and just pay them off, but don't want to make a schoolboy error.
I'm thinking put the £2,500 into a high interest account then set up direct debits to pay off the balances. Then pay in £160 a Month to cover them - is that about right?
Thanks all

colsten

£160 a month to pay off the £2,500 suggests you'd need 15-16 months to pay off the £2,500.

If you did put the £2,500 in a 5% account and paid the £160 from that account, you'd make in the region of £75 in interest before any tax deductions (which will probably be negligible as the new interest allowance kicks in from April).

My preference would be to get the £75 as there is next to no work involved in earning this money. Your decision what you'd prefer.

ronaldadio

colsten wrote: »

£160 a month to pay off the £2,500 suggests you'd need 15-16 months to pay off the £2,500.

If you did put the £2,500 in a 5% account and paid the £160 from that account, you'd make in the region of £75 in interest before any tax deductions (which will probably be negligible as the new interest allowance kicks in from April).

My preference would be to get the £75 as there is next to no work involved in earning this money. Your decision what you'd prefer.

And with that do u mean just letting it go from £2,500 to zero, other than the interest?
Probably makes sense

Any account suggestions?

colsten

Yeah.

Although you'd have to fulfill any minimum monthly deposit and DD requirements to get the interest, and also £2,500 doesn't neatly divide by £160.

ronaldadio

colsten wrote: »

Yeah.

Although you'd have to fulfill any minimum monthly deposit and DD requirements to get the interest, and also £2,500 doesn't neatly divide by £160.

Just noticed, the figs are not right
They are as follows -
£1,046.50 @£58.50/ month (last month a smaller payment) So 18 months.
£1010.33 @£40/ Month (last month payment slightly bigger) So 25 months.

I made an error with the other. The debt has been added to our regular monthly payments and is to be paid off over 3 months - £170/ month then back to normal payments.