Gransnet forums


Spending money

(78 Posts)
watermeadow Fri 19-Apr-19 20:30:19

I’ve always been hard up and manage only by being careful about money. I’m never impulsive or extravagant. This has given me a reputation as a skinflint.
At the moment I have the proceeds of a sale, which is all intended for doing up my scruffy little house.
Now, when I actually don’t need money, I’ve inherited £5000.
Shall I a) Blow the lot on my family.
b) Add it to the funds for the work on the house.
c)Buy Premium Bonds to help keep me in the future.
I have a large family and don’t suppose there will be anything for them to inherit when I die as my house will be sold to pay for my care.
Tell me what to do with my little windfall.

Tangerine Fri 19-Apr-19 20:33:23

Premium bonds might be a bit risky. What if you don't come up on them?

You sound as if you'd like to treat your family. Why not do that with some of the money after you've looked after yourself and your house. I don't know how much you need to do up your house of course so perhaps this isn't practical.

I wouldn't blow the lot on your family and I doubt they'd expect it.

aggie Fri 19-Apr-19 20:35:40

Finnish the house first , then keep the rest to have a super Christmas for the family

Grammaretto Fri 19-Apr-19 20:43:23

Finish the house then you'll all be happy. They will inherit a lovely house from you some day but meanwhile you can enjoy it and be proud.

Dividing it too thinly will make the money disappear. Buying premium bonds? You may as well throw the cash in the bin.
Just my opinion.

Fernbergien Fri 19-Apr-19 20:45:36

If you invest in premium bonds you might be lucky. At least the money is safe and easy to get out. This will give you thinking time. If you do go down that route always buy just before end of month then only 5 weeks to wait for the first draw. I have encouraged friends to get some and they were pleased they did. Of course it is not for everyone. Good luck with you decision.

Cherrytree59 Fri 19-Apr-19 20:47:27

A rainy day fund.
Knowing you have a little put by may give you a little peace and security.

What about using some for a visit to somewhere you have always wanted to see.
Enjoy sunshine

Charleygirl5 Fri 19-Apr-19 20:48:01

Finish the house definitely. To win anything with premium bonds one needs a large amount. My friend has the full £50,000 and wins something every month but not enough to live on. It pays to fill her car with diesel, pays for the odd trip to the supermarket but to date little else. The most she has won in any month is £25 x5.

MawBroonsback Fri 19-Apr-19 20:49:20

While I think there are lots of lovely things you could do for your family - how about renting a cottage/bite/villa big enough for you all for a holiday, do not despise the humble premium bond. I have won just over £800 over the last 12 months with a holding of £35k
I can cash them in any time I choose, when I need the money and on the meantime there’s always that little frisson of excitement when I see I have an email from ns&i !

Telly Fri 19-Apr-19 20:50:10

If you don't have much in the way of savings then you should certainly put a fair bit into savings so you have something to fall back on. Nothing wrong with premium bonds, you always get your capital back and you may have win. So I would do a little of each, take the family out for a nice meal, do something in the house and save at least half! Have fun XX

crazyH Fri 19-Apr-19 20:50:23

Watermeadow, how lovely that you have inherited some money.
If your house needs attention, i.e. needs repairs, I would first get that sorted. You've obviously got some savings set aside for work on the house. Don't go overboard with it. Get the repairs done and a freshening up. It will make you feel good.
I'm all for treating family but certainly, dont 'blow' the whole lot on them. Take them out for a nice meal. But the main thing is, spend it on something that you will enjoy.
Yes, most of us have this worry that our house will be sold to pay for our care home fees. Such a shame, isn't it? Those who have spent the lot on cruises and high living, will not have to pay for their care, but those of us who have been frugal and own our home and have some savings , are penalised.
Good luck watermeadow with whatever you decide to do. You seem such a lovely person.

Jane10 Fri 19-Apr-19 20:50:47

Rainy day fund! It's good to know its there. If you invest it, it could even bring in a little interest.

cornergran Fri 19-Apr-19 21:10:21

Finish your home, buy some premium bonds then sit back and relax. You may never need a care home, it’s far from guaranteed. Having read mawb’s comment about premium bonds I am seriously dissatisfied with ours hmm.

FlexibleFriend Fri 19-Apr-19 21:18:57

Finish the house, things always cost more than expected then put some away for a rainy day, it seems to rain a lot if you ask me. They can always inherit whatever is left when the time comes.

Apricity Fri 19-Apr-19 23:56:42

I'm with FlexibleFriend on this one. First finish the house improvements and spend a little on some new furnishings or personal treats. After a lifetime of frugal living you deserve it. House renovations ALWAYS cost more than you think, the general rule of thumb is double the original estimates.

Then invite your family for a renovation completion party or dinner and put the remaining money in a rainy day fund for your own peace of mind. Your family can enjoy visiting your renovated house, be happy for you and will eventually inherit an improved asset. That seems to be a win win situation for everybody.

sodapop Sat 20-Apr-19 06:42:31

That's lovely Watermeadow an unexpected windfall, nice to hear good news.
I would save a little, spend a little and share a little, whatever you decide just enjoy your good fortune.

KatyK Sat 20-Apr-19 09:38:08

We both bought Premium Bonds with our pension lump sums and have a win most months. It's proved to be better than any interest in a bank. They are not risky. Your money is safe. Why not save some and splurge some?

Matelda Sat 20-Apr-19 10:16:00

I think it is worth keeping some money for urgent health problems which the NHS won't deal with. This money could be used for cataract surgery which the NHS now seems to neglect until a person is practically blind. A little more money and I would definitely keep it for possible hip and knee replacement - a knee replacement on the NHS a couple of years ago transformed my mobility.

You could try putting the money in a Stocks and Shares ISA , invest it in exchange traded funds and watch it grow. The effort expended in learning how to do this is well worth it.

Pippa22 Sat 20-Apr-19 10:20:18

Premium bonds are definitely not risky Tangerine as you never lose the capital you have invested and you might have a win. Interest rates are so low at the moment that it is better in my opinion to buy Premium Bonds and you might win which would be better than interest earned elsewhere.
I don’t have the full amount invested, nowhere near it but this month have won £150 in 3 wins which is lovely.

Annaram1 Sat 20-Apr-19 10:25:20

The only thing is, Watermeadow only has £5000 and she will maybe spend half that on home improvements, That only leaves £2500, and if she gives a little party for £100 and gives her family £100, she has even less for premium bonds. OK if she can invest £35000 which some of you have and then you gain a little each month, but not if you only have a small amount. I once invested £10000 in premium bonds and got only £25, so I cashed in my bonds and have since heard that the return is very very small. Probably a nice holiday where you can look back on lovely memories would be as good an investment. Regarding going into a home, I believe the Government will allow you to keep £23000 of its value, Please correct me if I am wrong.

Kim19 Sat 20-Apr-19 10:28:31

I'm with the majority here in that finishing the house would be most satisfying and comfortable for you mentally and physically. I'm also a PB devotee and love their flexibility. Speedy to cash in when required/desired and lovely when E indulges us. Also I find a little nest egg is a comfort zone for unforeseen expenses which never seem to come at a 'good' time. Good luck with whatever you decide. I'm very happy for you.

Callistemon Sat 20-Apr-19 10:35:41

Premium bonds aren't risky unless there is rampant inflation.

Personally, I would finish the projects on the house which would make you feel better, invest some of it somewhere safe as a 'cushion' and take the family out for a lovely meal.

CardiffJaguar Sat 20-Apr-19 10:38:18

Premium Bonds are not risky they are probably the safest place to put your money. With a lump sum you should get regular wins of £25 and if you decide that any wins should be reinvested in more bonds yout lump sum will gradually increase. Yes, that is a gamble of sorts (you cannot lose) but it could be better than the meagre interest available from banks etc, and there is some excitment from any wins.

harrigran Sat 20-Apr-19 10:51:17

I invest in Premium bonds and I receive more in winnings than I do on any bank account interest, there is always the risk of no winnings of course.
My head would tell me to use all of the money on upgrading your house and making it comfortable, win win situation because if you have to sell to pay care home fees you will have a better chance of selling a maintained property.

Fernbergien Sat 20-Apr-19 10:55:26

Son bought some bonds recently. No where near the full amount. He has done very well considering. I have noticed newbees seem to do well at beginning.

David1968 Sat 20-Apr-19 10:55:50

Definitely use for your house and keep the rest as a nest egg. Maybe treat the family to a meal out, but mostly keep this for yourself and your future. (£5000 may seem like a lot but it's amazing how quickly money can slip away!) Clearly you are thrifty, so keep what funds you can, for your years ahead. Look after yourself!