What would you do?

[WolfAir]

So if you had around £80k just sitting in your account and you had a dead end.. low paying (20k a year) job but which you enjoyed.. what would you do?
Pay off mortgage £60k-ish saving around £700 a month,
Invest in a business or buy a business.. such as shop or gym increase income streams
Invest in stocks and shares... But this option would be very hard to sell.

I would say buy a business.. but what do i know.. so i throw it out to the big company directors of PH.. what would you do?

[lrdisco]

Retrain as an Air source heat pump installer.

[Simpo Two]

Businesses can fail just as easily as shares can go down. Why buy one? Could you start you own?

If it was me I'd invest it in appropriate funds - but you wouldn't be able to live on the gains so you'd still need a job.

[Frimley111R]

Your 80K is an asset so make it generate revenue. A business is a good shout but its a big step into running your own business if you have not done it before.

Pay off big chunk of mortgage and retrain. One of our guys did this and became an electrician and loves it.

Or, obviously, coke and hookers and the rest on red

[MrSparks]

Pay off your mortgage then start a business.

Business is so much easier and less stressful if you barely have any bills to pay!

[Duncan_autoshine]

If you could be content with yourself if you lost this money then invest or start\buy a business, if not then I think I would recommend paying mortgage off, this then saves all the interest you would end up paying on the mortgage which is a substantial saving.

I say this because business is hard and I believe when starting from scratch, it's better to start with very little money as that prevents you from losing much due to lack of knowledge, jump in to a business because you have a small pot of gold isn't the right motivation in my opinion, and it's also a depressing way to find out how little 80k gets you in this world now.

But, if you have an idea or opportunity and you can tell yourself I would rather fail and lose money than go to the grave never knowing what might of been, then go for it! :-)

Good luck either way.

[Drawweight]

I’m very risk averse so I’d probably use it to pay the mortgage off. I know it’s probably the worst move due to the low rates but that’s just me. However £700/month is a fair chunk of your income if you’re only on £20k.

As for buying a business. What are you going to get for £80k that’s not simply buying yourself a job with more hours, more stress and no guarantee of success?

If you want to change jobs use the money to retrain and support yourself while you build up experience. You won’t walk into a good paying job just out of training in most professions.

[brightmotiv]

Don’t buy a business, start a business.

Use the cash to pay down mortgage or invest for medium/long term depending on risk appetite.

[nealeh1875]

I'd pay off the mortgage

I assume no kids? 20k and enjoy work means you would have some good work life balance?

Pay it off, have 15-20k left in the bank. and use the £700 to live a easy live / nice holidays / do hobbies etc

[Pit Pony]

I was going to suggest, investing in a BTL but the mortgage requirements are probably £25k minimum income.

If you invested £50k in a £150k house you would probably have £450 a month profit after interest and other bills.

Not £700 though.

I think I'd actually pay £40k off my mortgage and then look at retraining. I'm not sure what in, but Electrician would be my own direction. Something I could be my own boss if I wanted to. No need to Buy a business.

[StevieBee]

I don't say the following to be unkind or judgemental but the nature of your question suggests it unlikely that you're ready for the risk, effort and work needed to set up or acquire and run a business.

Paying off your mortgage would have a similar effect on your month's money to a doubling of your salary. If you like your job, then this to me seems the sensible approach to take.

[Coleman262]

Personally if I were in your shoes I’d pay down the mortgage, maybe not fully probably half, but enough to take a chunk off the monthly payments,

Then chuck say 10/15 in a stocks and shares ISA if I couldn’t think of a decent business idea, keep a bit as a rainy day fund?


I’m an employed mechanic, so if it was actually me I would pay the mortgage off completely and go work for myself taking on enough to pay the bills and save some and have a better work life balance.

[JuniorD]

lrdisco said:

Retrain as an Air source heat pump installer.

Nah, window fitter is where the big money is.

[sjabrown]

I would say reduce/minimise debt first so that would include reducing mortgage (even acknowledging that interest rates are currently very low and unlikely to increase hugely)

[David Beer]

60 k mortgage costing 700 a month, I’d pay that off , maybe I misread it ?

[steveo3002]

in a similar position myself ....thing is having a few £££ in the bank doesnt necessarily make you a buisness man , i can see it being an easy way to lose all your savings unless you have some cracking idea or top notch help