What to do with £500!?!

SarahNeedle1872

:hello: everyone, I have a bit of a dilemma and I need some opinions.....

Yesterday my Dad gave me a cheque for £500..... he claims it has nothing to do with his recent heart attack (although the timing is questionable!). He also gave my sister £500.

Now, he said it was for my car tax/MOT/insurance, as that is all due soon, despite the fact that I told him I have been saving money each month for it, like a good little DFWer (I have about £650 saved)....

I haven't told OH about the money (he certainly wouldn't tell me if his parents gave him £50, never mind £500!) because he would try to spend it for me! I have told my Dad not to mention it to him, although I think money is the last thing they would discuss!

I played with the snowball and it only moved my DFD forward by one month, and I think my Dad might be disappointed if he knew thats what I'd done with the money - I would also be disappointed if I paid down my debt then fell off the wagon again!

I could also put the money towards our house deposit, or I could stash it in my own ISA and just let it earn interest untill I need it for something else.

So..... what do I do with the money?

1) Put it into my savings for our house deposit, and use the money I have saved for the car stuff.

2) Put the money against my debt (highest APR is 4.9%) which will only move my DFD forward by one month

3) Put it into an ISA for my 'emergency' savings

4) Use the money for the car stuff and leave the money already saved where it is.

5) Other - I am open to ANY ideas!

My savings/bills accounts are with Icesave, and its a new Barclays ISA.

Bunnyinthelights

I say house Sarah.
OR maybe spend some on something 'just for you' x

withabix

Give it to me and I will dispose of it for you

sallyx

I see you have one credit card with around £200 on it, could you pay this off, getting rid of one more debt and psychologically making you feel like you have put it to a good cause, put £200 into house deposit and keep £100 for car stuff and yourself

LilacPixie

I would probably keep your saving where they are and use the money as your dad intended.

postingalwaysposting

Sarah, I would stash it in your isa... my reasons are ~ 1) If you save it for a house deposit surely your oh will own 1/2 so its like just giving him the money now anyways 2) Putting it towards your debt isnt to clever seeing as its 4.9% and your isa should be 5%+. Also one month isnt very much is it, if it was 2/3 I would say chuck it at your debt. 4) Using it for your car means that all that budgetting would have gone to waste, the only reason I would use it towards the car is if you keep the car savings in the car savings fund and it rolls over next year... this is why I chose 3) place it in your personal isa.... but not before you take £50+ out and treat yourself. :A

hope that helps :j

SarahNeedle1872

I like the idea of paying off the card then stashing the rest..... I also like the idea of treating myself to something then stashing the rest..... that would have to wait til after pay day tho, as OH thinks we are skint as until then (actually, we are!)

Tough decisions, any more ideas?x

klane

I'd pay off the one card at £200 personally, and then put the rest towards what your Dad intended. Maybe take a bit (£50?) for a personal treat for yourself - book a nice massage or something, or buy something pretty you wouldnt have otherwise bought, or dinner for you and OH.If you end up with spare money after you sort the car stuff out, you can move the left over cash to something else of your choice then. Then you used some money how your Dad wanted, but haven't spoilt your budget effort either, and have the plus of gettng rid of one card.

chevalier

I thought for the car, mainly because then OH wouldn't get any real benefit from the money, and as he drives you up the wall sometimes, I figured that would be a plan
chev

Jacks_xxx

:wave: Hey sweetie-pie!

I've put stash in ISA but what I really mean is "Have a little unscheduled treat, pay off the £200 CC just for the :dance: Happy Dance Debt Slaying Feel Good Endorphins :dance: and stash the rest in your ISA!

So:

Well Deserved Treat? TICK
Debt Reduction? TICK
Sensible Saving? TICK

Works for me hon!

Love Jacks xxx

SarahNeedle1872

Jacks_xxx wrote: »

:wave: Hey sweetie-pie!

I've put stash in ISA but what I really mean is "Have a little unscheduled treat, pay off the £200 CC just for the :dance: Happy Dance Debt Slaying Feel Good Endorphins :dance: and stash the rest in your ISA!

So:

Well Deserved Treat? TICK
Debt Reduction? TICK
Sensible Saving? TICK

Works for me hon!

Love Jacks xxx

:rotfl: Thanks Jacks