Spending money

House first, then put divide the rest, if there's any left, and put into a savings account which gives some interest (precious little these days) and the rest for treats.

Most of you who have Premium Bonds probably have a lot more than £2000 or so!!! You should tell us the amount, as otherwise it is not good advice. Good luck Watermeadow and just suit yourself.

How lovely to have an inheritance. I would sort out your house, might it be a good chance to sort it out for when you may not be so spry? Downstairs loo, easy shower - that sort of thing.

I would use that money and treat yourself to a holiday. Enjoy life whilst you can.

To quote Martin Lewis : do as is shown when there is an oxygen problem in an aircraft - Put your mask on so that you can live and help others -
Do your house up first, then buy a studio and rent it out and live on or give the proceeds to your family.

PS
ML didn't say buy studio etc, that's my suggestion

Premium bonds do’t pay any interest on your capital. I’d finish the work on your house, treat yourself, then put the rest into an easy access ISA. I had a small amount put away like that and when I needed a bit extra for my daughter’s wedding I was able to use some of it. At least your money will grow. Peace of mind that you have something to fall back on such is such a relief and it may be that your family would like that too. It is so difficult because none of us wants to be a burden to our children and the possibility of going into care is a worry for everyone. So many of us are in the same boat.

We recently inherited just enough money to have a little extension outside the kitchen door for a porch and downstairs loo, and have the broken concrete "patio" paved properly. It's made all the difference to our quality of life! So my vote is you put it towards home improvements.

How much is a studio? I'd love one.

Spend it on your house make-over...then shove the rest into your bank....maybe take the family out for a slap up meal. Make you and them feel good.

Annaram1, do you mean one of those garden rooms? I think they start from about £15K fully installed.

Premium Bonds definitely. Your money is completely safe and you earn more ‘interest’ with small wins than you would ever do in a bank/building society. You’d be surprised at the number of £25 and £50 prizes that rack up.

Premium bonds and elect to reinvest any winnings. There is no risk as your money is safe.

i would do up the house and maybe a week away on a holiday. its your money. 5.000 doesnt go far....!!! and its slips through your fingers like water. invest some in an isa so you get interest,....maybe do the garden as well.

Why not do all 3, give your family some money, buy a few Premium Bonds then use the rest to upgrade your house renovations and treat yourself.
I'm expecting a £1000+ windfall and will split it 3 ways - my family, savings and myself. That way everyone benefits. A win/win situation.

crazyH you’ve hit the nail on the head there. My ils spent every penny they had and fil now in residential care, paid for by social services!
I had saved hard for my retirement but a car accident (not my fault) has left me unable to work. Can’t get ESA as I have too much money in savings, so having to live off them now, 10 years too early!

My advice to watermeadow is to use the money in ways that make her happy. Don’t put it all into your house as that is virtually giving it away, as if you need to go into care, it will be sold to pay costs.
How about a cruise and then maybe rent a lovely holiday home, somewhere nice for you and your family!

We only used to have £1000 in Premium Bonds and one month we won £1000. It's pot luck but obviously the more you have the better your chances.

Treating the family doesn't have to be expensive. Why not finish the renovations on the house and celebrate with a family party at home? If children are involved, order some takeaway pizzas, some proscecco for the adults, and a lovely cake. Then plan some fun family games. We did this recently for my husband's birthday and everybody enjoyed it. Keep the rest of the money to give yourself a bit of security, either in the bank or in premium bonds. Enjoy - you deserve it.

As David above said. I would use most of the funds on your house but treat them to a nice meal.

Look at it this way, if your house is maintained as well as it can be, then you won't be a burden to them, if, for example, your roof starts to leak and you have to ask them to put you up.

So theoretically you are doing them a favour by being independent and they won't have to worry about your house falling down around you.

I would also shop around for your house repairs as much as possible as £5,000 does not go a long way and you need to make it go as far as possible with your repairs.

What a thoughtful person you are to think of giving it away but honestly, please make sure you are o.k. first.

Add it to work on the house.

It was Mokryna who suggested that Watermeadow should buy a studio, in her first post. Anyway Ready Meals, there is never going to be enough money left over for either a studio or a garden room.

Use what you need for the house. You could buy a small amount of premium bonds and you may be lucky. Decide how long you want to keep them, say a couple of years then cash in. Sure by then something else will have come along that needs funds. Don't give the family a second thought financial wise. You have saved hard for what you have and if you do leave anything they will have the benefit of that.

I would renovate the house but save some money and also treat the family.

I would agree.....put some of the money towards repairs to your house and save the rest to treat the family (to a meal out or a special day out) and to treat yourself or have for a rainy day.
I was persuaded to give all our 5 children a lump sum when I had a windfall. They were all very appreciative at the time and it felt good to be able to do it but subsequently my husband needed expensive medical treatment and we are now counting our money whilst our children's lives have moved on and they all earn good money. To them it was a little bonus but it has left us short of money for reasons that we had never envisaged.

Don't even think of touching the money until your house is completely finished, whatever you have been quoted is bound to overrun, and being able to cover the increase without worry will be the most important thing.

Treat the family to a good meal out together, then keep the rest as an emergency fund, we all need one of those! I am so please for you.