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 CountryFeral

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 FeralEsme

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 FeralMalinki

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





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Win $1000 with Sea-Bands!

Three lucky fans can win a Sea-Band prize pack valued at over $1000 each, which includes two Sea-Bands plus a $1000 Eftpos gift card!

Misery loves Facebook

Facebook users are often criticised for only showing the positive, fun parts of their lives. But what about when it swings the other way, when someone uses it for the purposes of ranting about their children all the time, never posting anything positive?

Toddler's adorable impersonation of pregnant mum

Little Ellis has noticed his mum is walking differently lately, and his impersonation of her is hilarious.

'Forgotten baby syndrome' can happen to any one of us

When my third child was two months old, I strapped her into her car seat, then promptly forgot all about her. But she survived, unharmed, because it was winter, and I was lucky.

Join the Real Mums Test Drive Team

Five mums or mums-to-be will join the EB Test Drive Team and discover great items at an exclusive Big W event. (Sydney only.)

Ten things I've learned about motherhood

Never take a good night's sleep for granted. There is no logic like toddler logic. Standing on Lego hurts every time. These are the truths of parenthood.

Parenting past the toddler years: what's next?

Your baby has grown into a toddler, and now your toddler is fast approaching the preschooler stage. What can you expect as a parent?

Tips on what to pack in your hospital bag

Before giving birth I read countless lists, ended up overpacking just a little, and now know what I'll actually want to pack next time.

New app keeps tabs on your kids at childcare

Popular new technology lets parents know what their children are up to at childcare - but not everyone is a fan.

21 things I love about newborns

There?s an irresistible magic about newborns. Of course they're not all smiles and rainbows, but they are undeniably cute and remarkable in so, so many ways.

Kid-friendly hairdressers: who says haircuts can?t be fun?

I?ve found some salons who boast setups ideal for children ? you name it, they?ve thought of it. All are designed to make haircuts fun rather than stressful.

Labour pain relief may reduce risk of postnatal depression: study

Postnatal depression is a complex condition, but researchers say pain relief during labour may help some women.

Why we need better support for men after miscarriage

In a recent study, 85 per cent of men admitted feeling sadness after their partner miscarried, but almost half said they didn't share their feelings at all. What can be done to help them?

Mum in business: Kristy Chong

Kristy Chong is the managing director of Australian-made Modibodi underwear and a mum to Lucas, 6, Jason, 4, and Isaac, 6 months. She shares her advice for other mums thinking about starting their own businesses.

From toddler to preschooler: a developmental roadmap

So your toddler is growing up and will soon be entering the preschooler years. Here are a few ways to frame their development that will help you understand what?s going in those beautiful, funny, clever little heads of theirs.

Mum sacrifices an eye for her unborn baby

Motherhood is full of sacrifices, but this woman has made a life-altering one - and her baby hasn't even been born.

A grandparent by any other name

A growing number of grandparents are shunning tradition and going against conventional names - but a grandparent by any other name still gives the same awesome cuddles and kisses.

Photographer captures the beauty of adoption

The love of a family is usually tough to capture on camera. This is an exception.

When labour just doesn't happen

After three healthy kids, I can?t help feeling I?ve been a little ripped off. I missed out on something I had always wanted to experience, and now I?ll never get the chance.

Be careful what you say, your baby is listening

The importance of speaking to your baby even if they are not old enough to answer back has been highlighted by new research.

Share the little things that make you smile

We're giving away a Mountain Buggy nano, the ultimate travel stroller - and here are some of the great entries so far.

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

Be careful what you say, your baby is listening

The importance of speaking to your baby even if they are not old enough to answer back has been highlighted by new research.

Win $1000 with Sea-Bands!

Three lucky fans can win a Sea-Band prize pack valued at over $1000 each, which includes two Sea-Bands plus a $1000 Eftpos gift card!

The beautiful moment a baby was born at the side of a road

It's not where she expected to give birth, but mum Corrine Cinatl is delighted that her daughter's roadside arrival was captured in a series of beautiful photos.

Doctor sings first Happy Birthday to newborns

His job is to deliver babies, but this US obstetrician also has a unique way of celebrating the miracle of life.

Join the Real Mums Test Drive Team

Five mums or mums-to-be will join the EB Test Drive Team and discover great items at an exclusive Big W event. (Sydney only.)

The Nappy Collective starts new drive

It's that time of year when the dedicated volunteers at The Nappy Collective do their bit to help out mums and children in need - and they need your help.

Baby shower cake wrecks

From misshapen cake babies to questionable text, from odd colour choices to internal organ recreation, these are the baby shower cakes that taste forgot.

Photographer captures the beauty of adoption

The love of a family is usually tough to capture on camera. This is an exception.

Pregnancy progression photo ideas

Want to record your pregnancy as your belly grows? Here are some creative, fun ideas for photo shoots along the way.

The myths and facts about "normal" breastfeeding

When it comes to successful breastfeeding, there is a wide variety to what is "normal", according to new research.

Tin can craft and DIY ideas

Got a few old formula, Milo or coffee cans around the house? Use these fantastic upcycling ideas to create items for around the house and yard.

Dads meet their newborn for the first time

Emotional photos of two fathers meeting their newborn son have resonated with viewers worldwide, attracting thousands of Facebook likes and shares.

Skin safety isn't just a summer worry

Lax about the slip slop slap with your kids as weather turns cooler? Here's a reminder as to why we have to remain vigilant for our children?s future health.

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

Creative sleeping baby photoshoots

See how some parents and photographers have captured sleeping babies in unusual positions and using different props.

DIY kitchen and food hacks

DIY your way to a better kitchen and make cooking easier with our clever hacks. (Some content reproduced with permission from mashable.com.)

Winter warmers for babies and toddlers

Your baby or toddler will be nice and snug in these beautiful and fun winter pieces. Most are hand-made or knitted, and they're all designed to keep your little one toastie - and adorable!

 

Mind, body, beauty, life

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
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.