36 - Mortgage free what to do with spare cash
Discussion
Firstly , Im not very investment savvy however like to think I'm good with money. Looking for advice on the best approach to long term savings.
Mortgage is paid off at 36 (wife is 33) so now we are currently saving the monthly payment of £700 a month which is just sitting in an account. What is the best thing to do with it long term? Ive no debt at all. My plan is to start a small business in the future to allow a better life/work balance which will reduce my earnings but this £700 will remain constant.
I still save money each month on top of this which goes into a ISA and also Premium bonds.
Plan is to live in current house for 5-10 years and then move to Spain to live (selling house here). Money would then be needed for the move.
Wife saves similar amounts each month so she would likely follow me in what i do with my cash.
Thanks in advance
Mortgage is paid off at 36 (wife is 33) so now we are currently saving the monthly payment of £700 a month which is just sitting in an account. What is the best thing to do with it long term? Ive no debt at all. My plan is to start a small business in the future to allow a better life/work balance which will reduce my earnings but this £700 will remain constant.
I still save money each month on top of this which goes into a ISA and also Premium bonds.
Plan is to live in current house for 5-10 years and then move to Spain to live (selling house here). Money would then be needed for the move.
Wife saves similar amounts each month so she would likely follow me in what i do with my cash.
Thanks in advance
Buy a bigger house, sell in 10 years, pocket the uplift tax free.
Assuming of course they do continue to rise ...
Otherwise, £700 in an ISA, 5-10 year window of go with a 4/5 on a risk scale of 5 for the first 5 years and then dial it back.
Have a look on your banks website, I use HSBC, wife uses NatWest.
Vanguard is another option although my HSBC one has 0.1% fee and most big players charge a hell of a lot more, hsbc actively managed funds (3 various) average of 15% profit this year.
I assume kids aren’t in the picture for that plan?
Assuming of course they do continue to rise ...
Otherwise, £700 in an ISA, 5-10 year window of go with a 4/5 on a risk scale of 5 for the first 5 years and then dial it back.
Have a look on your banks website, I use HSBC, wife uses NatWest.
Vanguard is another option although my HSBC one has 0.1% fee and most big players charge a hell of a lot more, hsbc actively managed funds (3 various) average of 15% profit this year.
I assume kids aren’t in the picture for that plan?
Thanks for the response,
We quite like where we live (big garage) so not looking to move. Wouldn't be opposed to a BTL but i understand its not worth it now as a 1 BTL landlord. Aim is to generate enough cash to live in spain comfortably but to continue working.
Kids i imagine will happen at some point which will effect things I'm sure but I still will be able to save a huge chunk and my wife (teacher) would carry on working but maybe drop down to 3-4 days a week.
We quite like where we live (big garage) so not looking to move. Wouldn't be opposed to a BTL but i understand its not worth it now as a 1 BTL landlord. Aim is to generate enough cash to live in spain comfortably but to continue working.
Kids i imagine will happen at some point which will effect things I'm sure but I still will be able to save a huge chunk and my wife (teacher) would carry on working but maybe drop down to 3-4 days a week.
If you're mortgage free, cash rich, not git kids but planning to, then:
1) Buy a ridiculous car and enjoy it for a few years. This is Pistonheads after all
2) Go travelling (when allowed to) to all the place you wouldn't take children.
Best thing I did at exactly your age was take a 6 month sabbatical and travel to some far out places. We had our first kid at 39 and I'm so pleased I did everything I wanted before she came along.
1) Buy a ridiculous car and enjoy it for a few years. This is Pistonheads after all
2) Go travelling (when allowed to) to all the place you wouldn't take children.
Best thing I did at exactly your age was take a 6 month sabbatical and travel to some far out places. We had our first kid at 39 and I'm so pleased I did everything I wanted before she came along.
Red9zero said:
superpp said:
It's also not as easy to move to Spain now, post Brexit.
This could be easier/harder in 10 years time.
If you can move, I'd rent out the house here rather than sell it. In laws got bitten when they moved back to find house prices now too high for them.This could be easier/harder in 10 years time.
Once we move I doubt I would return. I may decide to keep our house but I may also end up with a few more houses (in far future) at some point in the UK via inheritence (assuming car home fees etc arent taken )
croissant said:
If you're mortgage free, cash rich, not git kids but planning to, then:
1) Buy a ridiculous car and enjoy it for a few years. This is Pistonheads after all
2) Go travelling (when allowed to) to all the place you wouldn't take children.
Best thing I did at exactly your age was take a 6 month sabbatical and travel to some far out places. We had our first kid at 39 and I'm so pleased I did everything I wanted before she came along.
Fabulous advice , but I'm very lucky I've been to most places in the world Id like to and had some cracking cars. Interest in cars has dwindled over last 10 years but Ive got a lovely collection of bikes to play with now. Still love travelling and holidays though. 1) Buy a ridiculous car and enjoy it for a few years. This is Pistonheads after all
2) Go travelling (when allowed to) to all the place you wouldn't take children.
Best thing I did at exactly your age was take a 6 month sabbatical and travel to some far out places. We had our first kid at 39 and I'm so pleased I did everything I wanted before she came along.
I was 40 when I paid mine off. I’m 45 now. It’s a nice feeling not to worry about a mortgage. Makes things / work less stressful. It’s funny, as soon as one milestone is complete you focus on another, retirement !
I max out ISAs in both my name and wife’s name. Max out my daughters ISA and my pension. Premium bonds maxed out too but return is poor.
We sometimes think we should move but we don’t need the space and have a nice house already. You can always get a bigger/ better house but I can’t face going back to having a mortgage. I drive a nice car, so does my wife and pre pandemic enjoyed nice holidays.
BTL seems like a lot of hassle and is taxed to high heaven so decided against this.
Kids don’t cost that much imo unless you decide on private school etc....
I max out ISAs in both my name and wife’s name. Max out my daughters ISA and my pension. Premium bonds maxed out too but return is poor.
We sometimes think we should move but we don’t need the space and have a nice house already. You can always get a bigger/ better house but I can’t face going back to having a mortgage. I drive a nice car, so does my wife and pre pandemic enjoyed nice holidays.
BTL seems like a lot of hassle and is taxed to high heaven so decided against this.
Kids don’t cost that much imo unless you decide on private school etc....
Edited by dphiggins007 on Wednesday 5th May 15:51
Edited by dphiggins007 on Wednesday 5th May 15:54
We have both joint and separate money.
We both pay £350 to equal the £700 ex mortgage payment which is the subject of the thread. And then individually save whatever we can dependent on lots of factors.
We have separate accounts Mainly because we earn around the same (she earns more now) but I tend to spend more on toys in big chunks and she spends more often but on smaller items. It levels out over time as I tend to spend little over say a year but then splurge on a pushbike/watch/motorbike. Both save similar amounts though.
We both pay £350 to equal the £700 ex mortgage payment which is the subject of the thread. And then individually save whatever we can dependent on lots of factors.
We have separate accounts Mainly because we earn around the same (she earns more now) but I tend to spend more on toys in big chunks and she spends more often but on smaller items. It levels out over time as I tend to spend little over say a year but then splurge on a pushbike/watch/motorbike. Both save similar amounts though.
d8mok said:
We have both joint and separate money.
We both pay £350 to equal the £700 ex mortgage payment which is the subject of the thread. And then individually save whatever we can dependent on lots of factors.
We have separate accounts Mainly because we earn around the same (she earns more now) but I tend to spend more on toys in big chunks and she spends more often but on smaller items. It levels out over time as I tend to spend little over say a year but then splurge on a pushbike/watch/motorbike. Both save similar amounts though.
Martin Lewis has flagged this before keeping accounts in single peoples name / no line of sight isn’t a good idea as one can die at any point leaving the other with a nightmare to fix. It also means she could go out spend loads more than your lower salary permits or vice versa not healthy. We both pay £350 to equal the £700 ex mortgage payment which is the subject of the thread. And then individually save whatever we can dependent on lots of factors.
We have separate accounts Mainly because we earn around the same (she earns more now) but I tend to spend more on toys in big chunks and she spends more often but on smaller items. It levels out over time as I tend to spend little over say a year but then splurge on a pushbike/watch/motorbike. Both save similar amounts though.
Pay up to £40k a year into your pension
Max into premium bonds
Max out S&S ISA £20k a year
Lease an RS4
Pay for a house cleaner meaning you have more free time
Pay for training to upskill yourself in a new vocation
Take up a hobby
Buy an S2000
See if going part time is an option
Pay more into a charity that is close to you
Max into premium bonds
Max out S&S ISA £20k a year
Lease an RS4
Pay for a house cleaner meaning you have more free time
Pay for training to upskill yourself in a new vocation
Take up a hobby
Buy an S2000
See if going part time is an option
Pay more into a charity that is close to you
NorthDave said:
If your ISA is maxed you could still set up a general investment account and invest that way? Stick it in a fund and hope it does well.
Its not as sexy as some of the other suggestions but you should have an appreciated lump when you come to need it.
His ISA cannot be maxed you need to be saving £1,666.67 pcm ongoing to achieve that, he has £700. Its not as sexy as some of the other suggestions but you should have an appreciated lump when you come to need it.
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