What to do with a spare 500 pounds per month

dudleybell

Good afternoon 
we just finished paying are mortgage off and find myself with a “spare 500 pounds a month”
I really had no idea on what to do with it..I thought about sticking the whole amount into a  stocks and share isa for the time being
has anyone got any better advice/suggestions

ps..we currently have 5k in a cash Isa for any emergency’s ..and we save 200 pounds a month for Xmas and the annual car expenses…
thank you…😁😁

theoretica

When is your car going to need replacing and are you saving for this?  What about home expenses like a new kitchen or redecorating?  Depending on the timescale, I might want more than 5k in savings rather than investments.

MattMattMattUK

Pension? Take advantage of the tax benefits of paying into your pension, either employer's or a SIPP if you want to invest yourself.

km1500

buy premium bonds ?

Brie

regular savings account??

jaypers

Paying off a mortgage is a great milestone and IMHO a great time to set yourself a target of living a life where you never pay any interest on debt again, or as close as you can get to it. The difference this makes to your family’s overall wealth shouldn’t be underestimated. Of course, if you are already there too, double congratulations. If this is the case, allocate the spare cash to savings, treats, pension contributions or whatever makes you all happy. 

boingy

I totally empathise with your difficult £500 pcm problem.
I don't want to be greedy so my suggestion would be to send half of it to me and put the other half into an S&S ISA. I won't charge you for it and I promise to let you know how my half performs. 

Yorkie1

The oft-quoted advice is to aim for 3-6 months' living expenses in easy access accounts in case needed in an emergency.

Then, as others have said, look at pension arrangements or other savings, assuming no other debt to be paid off.

robaber

Congratulations on paying off your mortgage, well done. 

If in your situation, it would depend on what else I already had in place. 

I may think about ordering my priorities:

1) I would check I have Life Insurance, Income Protection, Wills and Lasting Power of Attorney.
2) Paying off any debt. 
3) Building up an cash emergency fund, of 3-9 months worth of bills. I would go for a higher rate interest savings account. If this amount brought me into paying tax on my interest, I would fully use my and my partners allowance. If still over, I then would put some into a cash ISA, to bring my under.
4) Saving for any likely upcoming expenses, e.g. A car that will need changing or home improvements. 
5) looking at how much I and my partner are contributing to our pensions. Aiming for at least 15% of our incomes. If below, I may top up, either by deducting from my salary, by directly adding to our existing pensions, or if this is not possible, by considering putting it aside into a Self Invested Personal Pension. 
6) Any left over, I would consider a Stocks and Shares ISA. Personally, I prefer index funds. 

Good luck 

Albermarle

robaber said:

Congratulations on paying off your mortgage, well done. 

If in your situation, it would depend on what else I already had in place. 

I may think about ordering my priorities:

1) I would check I have Life Insurance, Income Protection, Wills and Lasting Power of Attorney.
2) Paying off any debt. 
3) Building up an cash emergency fund, of 3-9 months worth of bills. I would go for a higher rate interest savings account. If this amount brought me into paying tax on my interest, I would fully use my and my partners allowance. If still over, I then would put some into a cash ISA, to bring my under.
4) Saving for any likely upcoming expenses, e.g. A car that will need changing or home improvements. 
5) looking at how much I and my partner are contributing to our pensions. Aiming for at least 15% of our incomes. If below, I may top up, either by deducting from my salary, by directly adding to our existing pensions, or if this is not possible, by considering putting it aside into a Self Invested Personal Pension. 
6) Any left over, I would consider a Stocks and Shares ISA. Personally, I prefer index funds. 

Good luck 

OP - You can see from the good points above, that a lot depends on your personal circumstances ( of which we know not very much) and what you might want to get from this £500 pm eg new car at some point , better retirement income etc 
There is for sure no one answer that suits everybody.