£10k - what to do?

[Ved]

Evening guys,
I will have £10,000 to use at the end of the year and I'm trying to come up with the best ideas for what to do. Here's my thoughts but let me know what you think as well.

1. Pay off the R32. This will free up my car allowance and I'll pocket £333 per month extra and have an asset worth in the region of 12k.
2. My mortgage deal expires in December and reverts to 3.99%. I could remortgage at 4.2% (fixed for 3 years) and throw the 10k into it to effectively take over a year off the mortgage. This would also reduce the mortgage payments by about £150
3. Buy a MX5
4. Invest it in the house and gut the garden (it's rubbish), lay a new lawn etc and build porch on the front

Thoughts?



David

[bogie]

so much depends on the rest of your finances and circumstances....only you know that

personally id pay the car off, its nice not having car loans around your neck...then you can choose to overpay the mortage and/or invest the spare cash you have each month

[Ved]

Thanks, that's pretty much what I'm thinking too. Baby time some point next year so every bit will help

[e8_pack]

£333 will be a welcome chunk to have, I'd do that and pay of the r32.

[cqueen]

e8_pack said:

£333 will be a welcome chunk to have, I'd do that and pay of the r32.

This. Use the extra money pocket money to sort the garden out.

[eastsider]

Pay off whichever borrowing is costing you the most, ie the car. My personal aim is always to have no borrowing other than (necessary) mortgage. No car loans or finance, no credit cards (use by all means, but pay in full each month), no personal loans. Old fashioned perhaps but there you go.

To finance your next car, save what you can (within reason) each month. If you save £200 a month for three years, then you'll have £7200 plus whatever you sell/trade your current car for when its time to change. Best way to do it IMHO. And if you need to use the capital for something else run your current car longer.