What would you do with £10k, £20k, £50k, £100k, £500k

AlexDee

£10k - I’d probably use around half to go on a big trip to the US. The remainder would beef out my house moving fund. (Planning to move in the next 24 months so starting to save for fees etc).
£20k - as above, beef out the moving fund a little more. The rest would be split between my ISA and bumping my emergency fund.
£50k - as above. I’d also consider adding more capital into the house move for more deposit. I’d put the remainder into my ISA.
£100k - now I’d be looking to keep some of the money aside to consider a deposit on a buy to let property. I’d likely look at paying off my student loan which is at about £20k currently.
£500k - all of the above! Maybe a new car, an extra few holidays but the bulk (£450k) would be invested in some respect.

bostonerimus

You know you're an investor (maybe a miser) when you look at all those sums and never consider spending the capital just start working out dividends, potential capital gains and automatically figure out 4% as an annual income they might safely produce.

Murphybear

OH and I are both retired. We have no children so what we would spend it on is a little different

£10 k small holiday, rest in bank
£20 k replace both cars, nothing too extravagant, rest in bank
£50 k new kitchen and bathroom, rest in bank
£100 k replace the furniture plus above
£500 k would need a lot of thought

Save as much as possible so future operations can be done privately. New knees, hips etc. Both have first signs of cataracts but should be good for 10 years before treatment needed

The larger amounts would upgrade the restaurants we go to. Dentist upgraded to private.

The icing on the cake, when 15 year old cat goes to cat heaven I will treat myself to a couple of Maine Coons (largest breed of domestic cat and very very hairy and expensive to buy)

justme111

justme111 wrote: »

1O or 2O k - invest
5O k - one third invest , one third spend ( private health , travel , car, beauty, shoes, new shed etc, one third work less.
1OO - invest 2/3ds , work less and buy the same stuff, would pay for my partner to not work and spend time teaching my child
5OO - I would have worked far less(2 days, oaid my partner not to work( ,invested , lived on dividends and explored what else would I rather do.
.

My answers would change a bit from a year ago. 10 and 20 would be the same.
50 would not make me to work less as I already do so half invest half spend on the same items that are still mostly pending.
100 - partner not working already - he has enough to live on so no need for me to pay him and the child does not have any more time free than for about 2 classes/week which are happening already anyway. 100 would prompt me to work even less.
500 - the same apart from paying the partner.

trailingspouse

This is a question that often gets asked on quiz shows - if you win, what will you do with the money? And 99% of the people say they'll go on holiday - it's like no-one can have a holiday unless they win a quiz!!
My personal thoughts (assuming these are amounts over and above our normal income, and bearing in mind that holiday-wise, we're good) -

£10,000 - pay off car loans
£20,000 - as above + do final bit of work on the house
£50,000 - as above + pay off part of mortgage
£100,000 - as above + pay off all of mortgage
£500,000 - as above + start to do some good in the world. You could do a lot with £400,000.


Many people don't have a concept of just how big some numbers are. I was chatting with a colleague about a Lottery Roll Over - it was £12m. I asked him what he would do if he won - he said he would go on holiday. I asked what he would do with the remaining £11,998,000...

John_G_Jones

chucknorris wrote: »

My response would have been very different (I never understand why people like you can't see this):

My mortgage is only about 1%, but my dividend income is about 4%, it would be insane for me to pay off my mortgage. Additionally if you don't have £100'sk invested (I do) the dividend income is tax free.

To echo your words back at you I never understand why people like you struggle to understand risk adjusted returns.

How can anyone struggle to get their head around the idea that with different risk appetites and investment horizons that paying off the mortgage is exactly the right thing for some people?

(I know, I know, I work in finance and so what is obvious to me confuses others, but why then do they post with such a combination of condescension and ignorance?)

eskbanker

trailingspouse wrote: »

Many people don't have a concept of just how big some numbers are. I was chatting with a colleague about a Lottery Roll Over - it was £12m. I asked him what he would do if he won - he said he would go on holiday. I asked what he would do with the remaining £11,998,000...

Any lottery winner who'd consider £2K to be a realistic amount to spend on a holiday wouldn't deserve to win the money IMHO - it should go to people who aren't so imagination-challenged!

chris024

Currently living at home

£10k - Pay off car loan & save the rest
£20k - As above
£50k - As above
£100k - Pay off car loan. Possibly put down a deposit on a place with the rest.
£500k - Pay off car loan, Move out. Buy a place outright. Family holiday. Save the rest.

System

chris024 wrote: »

Currently living at home

£10k - Pay off car loan & save the rest
£20k - As above
£50k - As above
£100k - Pay off car loan. Possibly put down a deposit on a place with the rest.
£500k - Pay off car loan, Move out. Buy a place outright. Family holiday. Save the rest.

Presumably, you mean currently living at your parent's home. If I was them I would be a bit concerned about how much money is required to get you to move out!

Fatbritabroad

I've had this recently with an inheritance of 42k. We bought a good second hand 3 year old car which used up about 6k of it (plus equity in old ten year old car and some cash I already had) and invested the rest in one hit in August. At 100k I'd fill both our isa allowances and invest in taxable. I put enough in pensions though annual allowance wise I only put a third of this in I'm prioritising liquidity now so would keep more outside my pension