What do you do with your extra money?

Spook187 said:
Blow it on my coral Reef, no point in being the richest man in the graveyard :)
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Unless you have kids, in which case, I'd rather leave them a big nest egg that will help them (and their kids) to have an easier, less stressful life.

As for my wife and I, we have a budget, so there's no such thing as "spare" cash. It's all allocated before it's received.
 
Between me and my employer I pay near my annual allowance into my pension, and then keep £500 a month into our company SAYE. I also save £250 a month into a managed portfolio. I'm not doing too much more saving at the moment, as my wife's brother recently had a relationship breakup and we thought that we may need to help him, and now my brother has ended his 30 year marriage and we'll definitely need to help him in the next 6 - 18 months. So we're just letting the spare build up in our joint a/c at the moment, with sweeps to cash ISAs every now and then. I would like a new motorbike soon though... :D
 
Dont think premium bonds are worth it either. We have a small amount in there as yiu never know your luck but i wouldn't be putting any significant amount into them on a regular basis.
 
Into my "just in case" fund. I'm not used to having spare money, so it's just a bank account. I suppose I should put it somewhere else, but it's only £4K so it's not like I'm missing out on a lot of interest. It's a lot to me, but it's not really a lot. It's very nice to know I can cover most emergencies if I have to. Something to not worry about. It'll probably go on home improvements. New windows, bathroom redone...there's always something to do with a house.
 
Angilion said:
Into my "just in case" fund. I'm not used to having spare money, so it's just a bank account. I suppose I should put it somewhere else, but it's only £4K so it's not like I'm missing out on a lot of interest. It's a lot to me, but it's not really a lot. It's very nice to know I can cover most emergencies if I have to. Something to not worry about. It'll probably go on home improvements. New windows, bathroom redone...there's always something to do with a house.
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Overpay your mortgage is a good option if you don't want to take a risk.

Alternatively buy gold. It will rise in a recession. I'm guessing it will increase in price with brexit.

So as a short term investment it looks good. Sell when it peaks and then use that cash to overpay or invest elsewhere.
 
Psycho Sonny said:
Alternatively buy gold. It will rise in a recession. I'm guessing it will increase in price with brexit.

So as a short term investment it looks good. Sell when it peaks and then use that cash to overpay or invest elsewhere.
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It may have risen during the last recession,
but it didn’t in the one before that (early 90s).

It’s very dangerous to assert that something will happen, when in fact we just don’t know. Analysts were advising
people to buy gold when it was at an all time high, because everyone gets carried away with the momentum of a bull run.

At least with a share portfolio you’re getting regular dividends. Gold is really for people that have lots of spare capital and want another component to their portfolios. I’d never advise someone to go all in on gold, least of all a causal investor.
 
Psycho Sonny said:
Overpay your mortgage is a good option if you don't want to take a risk
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True, but I have very little left on my mortgage and if I used my "just in case" fund to overpay on my mortgage then I wouldn't have that "just in case" fund. I could, of course, borrow against my house if necessary but that would cost me more. So it is still a risk. Also, I think that the reassurance of having "just in case" money is probably more valuable to me than the small amount I would save by overpaying on my mortgage now. I have less than 3 years to go from the 25 and it was only a £25K mortgage to begin with (the house cost me £28K and I paid £3K deposit). I'm used to being poor, very poor by the standards of the UK, and I have some need of that reassurance. Poverty lingers even when you're no longer particularly poor.

Overpaying on a mortgage (or any other debt) is a good option and usually a very good one, but it doesn't seem like much for me personally and right now. If I could have done it 20 years ago, that would have been a different situation.

Alternatively buy gold. It will rise in a recession. I'm guessing it will increase in price with brexit.

So as a short term investment it looks good. Sell when it peaks and then use that cash to overpay or invest elsewhere.
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I don't gamble, even when the gambling is called an investment. There's no such thing as a guaranteed win in gambling (unless it's accompanied by a greater loss in some way). If someone says "this will happen" when it comes to gambling, I assume they're wrong. The biggest single loss I took in gambling was on advice from a financial advisor - I took out an endowment mortgage. That was gambling dressed up as something else and I fell for it due to my own ignorance and lack of research. a
 
Being a student I don't have any spare money. When the loan comes in its put in a holding account and used to supplement my wife's wages.

I finished uni in ~6 months so my money plan is something like:
1. Get a (good, hopefully) job
2. Save up ~6 months salary
3. House upgrade
4. Overpay mortgage / (re) start ISA / SIPP

Looking at that it's a bit depressing really, can't see any space for a nice car / watches etc for a while.
 
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