Jump to content

What to do with the money?


  • Please log in to reply
32 replies to this topic

#1 money

Posted 23 January 2013 - 09:51 AM

Hi All

long term member going anon due to the nature of the topic.

DH and I have recently been told we will be receiving a large portion of money from our grandparents will. Im estimating this to be between $50-$100k most likely about the $80k mark.

The only debt we have is our rather large mortgage of approx $430k.

Our house is brand new but has no landscaping. We have 1 child with another on the way very soon.

What would you do with the money? Do we lump it all on the mortgage to reduce our current debt? Do we use it to finish the house, spend a little on upgrading one of the cars and getting solar, put the rest on the mortgage to reduce our current living expenses?

What would you/should i do?

#2 HRH Countrymel

Posted 23 January 2013 - 09:55 AM

I'd sit it in the mortgage offset account - then go from there.

You get the same benefit as if you HAD paid it off your mortgage but it is still there to spend if you want to.

#3 Justaduck

Posted 23 January 2013 - 09:58 AM

I would be getting the solar, as it in a way is an investment in the long run & will mean you have an extra $400or so a quarter from not needing to pay electricity bills.
I would probably put some of it in an account for both of the kids & some of it aside for emergencies too.
If there was a need for a newer car (ie frequently breaking down, getting a bit small) I would look at replacing it.

Can you put it in an offset account that has free and unlimited redraws?


#4 CallMeFeral

Posted 23 January 2013 - 09:58 AM

I'm someone who would always put it on the mortgage. I HATE paying interest. Have you done one of those interest calculators that shows you how much you would save over the life of the loan with $80k extra in there?
Especially with another child on the way, reducing your interest repayments should serve you well. I'd save improvements on the house etc till when you are not in such a financially precarious situation as being on one income with a large mortgage.

ETA. I'm assuming you have mortgage redraw or offset so that you could withdraw it later anyway

Edited by CallMeAliG, 23 January 2013 - 09:59 AM.


#5 50ftqueenie

Posted 23 January 2013 - 10:00 AM

Our mortgage is about $330k and we would also just put it in the offset account.

(we would probably blow some of it on a luxury weekend away for the two of us, and a cheaper beach holiday with the kids)



#6 BadCat

Posted 23 January 2013 - 10:00 AM

Depends on whether you are getting by on the money you have.  If you will be able to afford the landscaping and whatever else without that money then I'd just throw it straight at mortgage.

#7 suline

Posted 23 January 2013 - 10:01 AM

I am with countrymel- straight into the mortgage offset, even if it is untouched for a couple of months, then you put a little towards say the landscaping - the reduction in your interest on your mortgage will be significant.

While it is sitting there reducing your mortgage you can make a good plan about where you want it to go.

#8 Julie3Girls

Posted 23 January 2013 - 10:01 AM

Yep, straight into the offset account.
Then I would gradually do the things that we needed with the money, like the solar and the landscaping.

#9 *-*

Posted 23 January 2013 - 10:03 AM

QUOTE (countrymel @ 23/01/2013, 10:55 AM) <{POST_SNAPBACK}>
I'd sit it in the mortgage offset account - then go from there.

You get the same benefit as if you HAD paid it off your mortgage but it is still there to spend if you want to.


Where is the like button??

#10 MintyBiscuit

Posted 23 January 2013 - 10:09 AM

If it were us in our current situation, I'd spend it on the landscaping, pay off the last of our personal loan and credit cards, and put any remaining on the mortgage. In our situation, paying off those last debts would free up a huge amount to pay extra on the mortgage, and while the idea of reducing the mortgage quickly is lovely, I currently have a crappy backyard and really want it sorted. We don't have an offest account so it wouldn't be an option for us, and we have a fixed rate for another 18 months so while we can pay extra on the mortgage we can't pay that much extra. I'd rather improve our standard of living now and set us up to smash the mortgage in a little while.

But obviously that is very specific to my situation original.gif

#11 EsmeLennox

Posted 23 January 2013 - 10:12 AM

Yep, straight into the mortgage or mortgage offset and then think about how to use it. With young children the landscaping would be pretty high on my agenda, but I wouldn't go mad just because I now had the money, IYkWIM.

#12 A Tiny Hedgehog

Posted 23 January 2013 - 10:14 AM

Pretty much in agreement, solar panels and then mortgage offset. There's very little else you could immediately do with the money that would make as much of a difference.

#13 Leggy

Posted 23 January 2013 - 10:29 AM

First off, look up the mortgage repayment calculators that PPs have mentioned and play around with different figures. Seeing how much faster you can pay out your mortgage with various lump sums may change your priorities.

I would put in solar first - we did this last year and don't have to pay electricity bills anymore.

Then I would put aside 3 to 6 months' worth of expenses in a saving account (I work in a career where serial 1-year contracts and consequent job uncertainty are the norm, so this might be less important for you guys). You could also do this in your mortgage offset if you have one, but be careful it doesn't get spent by accident.

Then, if you already have a mortgage offset account, I'd put the rest into that while you decide what you want to do with the landscaping, and then redraw a bit to get it done. As PPs say, with littlies it would be good to have a pleasant garden to grow up in.

If no offset account, I'd put a chunk straight into the mortgage, and keep the rest in a high-interest account until you've decided what to do about the garden, then transfer the rest onto the mortgage.

Maybe also a holiday if you haven't been away for a long time, what with young kids and buying a house - a couple of weeks at the beach can do wonders for your sanity original.gif

#14 SlinkyMalinki

Posted 23 January 2013 - 10:34 AM

I'd spend what you need on the landscaping, and put the rest on the mortgage.

#15 Bluenomi

Posted 23 January 2013 - 10:42 AM

What Country Mel said. Stick it on the mortage and when spend some time thinking about what to do with some/all of it.

#16 Always amazed!

Posted 23 January 2013 - 10:44 AM

If I got $80k in your situation I would

Put $50k to offset the mortgage
$30 towards solar, landscaping,holiday,upgrades on anything that NEED replacing and get upto date with bills ect
That way I would get to enjoy some of the money whilst still putting a large chuck on the mortgage

#17 Jembo

Posted 23 January 2013 - 10:51 AM

I would put it all to the mortgage/offset and reduce the debt.

#18 I'm Batman

Posted 23 January 2013 - 10:59 AM

Id go the solar, Id do the backyard for the children so its safe and tidy, so lawn and a few trees plus a cubby house and then the rest on mortgage.

Your mortgage is pretty large, I wouldn't be comfortable unless It was reduced to the point where it would be covered on 1 wage.

#19 Lainskii

Posted 23 January 2013 - 11:29 AM

http://www.mortgagechoice.com.au/home-loan...calculator.aspx

use this calculator to see how much you will save on your mortgage. Even if you redraw some, a few months will $80000 will reduce the principle of your loan.



#20 F1widow

Posted 23 January 2013 - 11:31 AM

Since the money represents around 20% of your remaining mortgage, I would actually seek financial advice.

To me, it would depend on the following factors:

interest saved vs potential interest gained by investing
any disadvantages of making a lump sum payment to the mortgage?
how tight are you incomings and outgoings now? (rhetorical question)
weighing up your goals with any opportunities/threats

Also, if you were going to spend some money on landscaping, solar, new car etc I would do so without considering any gain. As in, set a budget for these expenses based on your current situation not on your future one. This will ensure that the $80k is a real gain.

From a purely emotional perspective and without knowing the full circumstance, I would do the landscaping and solar, then put half (of the remainder) on the mortgage and half in savings for a rainy day.

#21 Freddie'sMum

Posted 23 January 2013 - 11:33 AM

Give it to me  ph34r.gif

(I'm being silly of course)

Agree with the PPs - do you have a mortgage off-set account ??  If yes, I would put it in there.




#22 ~polly~

Posted 23 January 2013 - 11:33 AM

QUOTE (countrymel @ 23/01/2013, 10:55 AM) <{POST_SNAPBACK}>
I'd sit it in the mortgage offset account - then go from there.

You get the same benefit as if you HAD paid it off your mortgage but it is still there to spend if you want to.


This is the best option.  It will hard to get a return on investment (after tax) that is better than not paying interest on your mortgage.

Maybe put half on the mortgage and half on the offset account so you can spend it if you want to

#23 bright*future

Posted 23 January 2013 - 11:36 AM

You don't have to spend it tomorrow (or at all), put it in an offset acct and think about it for a while.

#24 steppy

Posted 23 January 2013 - 11:38 AM

Offset account for me too - reduces interest while giving you time to consider.

#25 hanz33

Posted 23 January 2013 - 11:39 AM

QUOTE (money @ 23/01/2013, 09:51 AM) <{POST_SNAPBACK}>
Hi All

long term member going anon due to the nature of the topic.

DH and I have recently been told we will be receiving a large portion of money from our grandparents will. Im estimating this to be between $50-$100k most likely about the $80k mark.

The only debt we have is our rather large mortgage of approx $430k.

Our house is brand new but has no landscaping. We have 1 child with another on the way very soon.

What would you do with the money? Do we lump it all on the mortgage to reduce our current debt? Do we use it to finish the house, spend a little on upgrading one of the cars and getting solar, put the rest on the mortgage to reduce our current living expenses?

What would you/should i do?

put it in the mortgage





0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Kelly Clarkson shares first photos of son

Kelly Clarkson has shown off the first photos of her son, Remington Alexander Blackstock.

5 childbirth myths that need to be busted

Birth is an unpredictable, mysterious process that intrigues us all, and there is a lot of misinformation out there.

Mum of three fatally shot by toddler while driving

A US mother has been shot by her toddler while driving on a highway in Wisconsin.

All you need is one minute to work out

The seven-minute-work out is old news. Research shows the effectiveness of going hell-for-leather for just one minute.

Pregnant women needed to join diabetes study

Pregnant woman in country Australia will help Adelaide researchers figure out why cases of type 1 diabetes have doubled over the past two decades.

Just announced: the Mountain Buggy Unirider

It's the perfect solution to combat those toddler meltdowns when they no longer want to be in a pram but can't walk long distances.

Authorities euthanise dog that fatally bit a newborn baby

A pit bull mix that fatally bit a 3-day-old infant last week has been euthanised, authorities said.

The push for Medicare to fund lactation consultants

While meeting with a lactation consultant can make an enormous difference to a new mother, it's not a service that is available through the public health system.

Why it's perfectly natural to dislike other people's children

Members of a popular forum are fiercely debating whether it is acceptable to dislike a friend's child.

Woman gives birth on plane, names baby after airline

A pregnant woman who unexpectedly gave birth on a flight has named her new baby after the airline, Jetstar.

Heartwarming photos show the joy of adoption after foster care

Children living in foster care can feel like their future is less than clear. But that uncertainty disappears the day they are adopted by their "forever family" 

'Oh my god, it's a baby!' Mum shocked to give birth

When the cramps started to kick in, Klara Dollan just assumed a painful period was starting.

Mum's Facebook plea: 'Help me find my daughter's father'

Kerryn has a unusual present planned for daughter Imi's 13th birthday celebrations - she hopes to be able to be able to give the soon-to-be the teenager her first ever photo of her dad.

Is it possible for your house to be too clean?

Our houses are cleaner than ever before. But how clean is too clean? Could a sterile home be putting your family's health at risk?

Millions of Monkeys: puzzles that grow with your toddler

Here's a puzzle that grows with them; the Puzzle Grow Pack by Millions of Monkeys.

Baby names from Britpop

If you grew up in the 90s you might want to look to the genre of Britpop music for baby name inspiration.

What to eat and drink when you have gastro

When you catch a bug that causes acute infectious gastroenteritis (gastro), your stomach and intestinal tract become inflamed, causing diarrhoea, nausea, vomiting, abdominal cramping and pain. The last thing you probably feel like doing is eating.

'To this day, I owe her my life'

Would I have survived if I hadn't crossed that street?

Why baby Sonny needs you to vaccinate your children

Caitlin is a firm believer in the importance of immunisation to protect children from harmful and deadly diseases.

Five-year-old's photo captures beauty of motherhood

There is no make-up or special outfits and hairdos, but the five-year-old boy who took this picture captured the essence of motherhood as well as any professional photographer.

Babies know whether you are naughty or nice

Studies have shown that infants in the first months of life try to avoid dealing with social wrongdoers - for example, sharing less with them and helping them less - and they expect others to, too.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

The babies who are one in 70 million

Bethani Webb was excited to find out she was pregnant, but the first time mum did not realise she was carrying four babies not one.

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Cafe offers breastfeeding mums a free cup of tea

A Sydney cafe is offering breastfeeding mums free cups of tea in a bid to show support for the right of women to nurse their babies wherever they choose.

To snip or not to snip? When the decision is not clear cut

Jamie Oliver, who considered a vasectomy, is to be a father again. A fellow dad reflects on his own decision 11 years ago

Doctors stunned by rare twins born almost six weeks apart

To everyone's surprise, Kristen Miller "kept doing better each day", keeping her second baby safe.

Baby book ideas for modern parents

Before my son was born I was given a lovely baby book full of blank pages waiting to be filled with weights and heights and first words.

The adorable smile of a baby seeing his mum clearly for the first time

There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.

Mum tells how toddler 'nearly hung himself' in cot mishap

When Alison Johnson put her 18-month-old Caleb down for a nap, she had no reason to believe her son was in any danger.

Babies are still switched at birth? Yes, it can happen

All my panic and tears aside, my biggest question looking back is about the kind of security measures used in the maternity ward.

Doctors slammed for taking selfie with newborn

Everyone who visits a mum in hospital in the days following childbirth wants to get a photo with the new baby.

ergoPouch Twosie Sleepsuit for winter breastfeeding

Finally, there's a way to keep warm while breastfeeding through winter.

Health check: How long does sex 'normally' last?

What to do with this information? My advice would be to try not to think about it during the throes of passion.

When breastfeeding sucks: fixing common problems

From niplash to tight boobs, biting to milk supply issues, Pinky McKay looks at common breastfeeding issues and how to solve them.

10 things I've learnt in my first six months with twins

Six months on we're all still alive, and the more we get to know each other the easier the days become.

Mum's loving kiss leaves baby fighting for life

Kirsty Carrington thought nothing of giving her newborn son a kiss, little did she know it would leave the baby fighting for life.

When doing chores is your new 'me time'

After children, 'me time' looks a little different.

Get going: 14 travel strollers for families on the move

A stroller can make or break travelling with a baby or toddler. Here are 15 great single travel stroller options.

10 ways toddlers are terrific

It always pays to remind yourself of how terrific toddlers can be - they're little like this for such a short time

 

ENTER NOW

Do your kids love bananas?

This is the comp for you! We have $800 worth of Myer gift cards and boxes of Australian Bananas to be won. Entry is simple: just post a pic of your little one enjoying a banana in the comments of the FB post to enter.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.