# Advice appreciated for 20k



## pedromendez (2 Dec 2018)

I've recently had a windfall of around 20k, a huge amount of money in my eyes, as I normally live month-to-month, and struggle to afford a mortgage at times that consumes around 40% of my salary.

Im trying to figure out the best approach here on what to do with the money and make life easier all round.

Firstly, I've got 2 young children, so I was planning to put a sum of money away for each of them for when they are older. Are there any specific saving schemes / accounts that might be recommended for access when they are older and possibly gain some interest over the nexy 10+ years?

The other 2 options I was considering was paying off a car loan or pay a larger lump sum off my mortgage. 

Which of these would be most beneficial, pay of my car loan (which would allow me to, in-turn, put those car repayments off the mortgage?)  Or pay a lump sum off the mortgage? 

Any advice or thoughts on the above would be much appreciated. 

Many thanks,


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## DeeKie (3 Dec 2018)

I’d not put money away. Keep the mortgage term the same length and put it in against the mortgage and pay off the car.


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## noproblem (3 Dec 2018)

I certainly wouldn't be putting any of it away for the children. You've had a bit of luck, it will hopefully make your life a bit easier. Put 5k in a savings a/c for emergencies or suchlike where you can access it quickly. Very little to be gained by looking around for high interest or suchlike, rates are very low and will stay like that for a while yet. Yes, pay off your car as it's probably a highish interest rate you're paying and this will help you have a bit of leeway with your mortgage. There's one thing a lot of people don't do as a family and that is, treat yourselves. You don't have to spend an awful lot and whatever you do, don't see it as a waste, it isn't and won't be, so do it. Having young children to rear is not easy and you'll need all of the money you'll have left to make things a bit easier so put it where you can access it and make a bit of money in interest. An Post have products that I think are very suitable for your needs. I wish you good luck with your good fortune and hope you all have a nice Christmas and look forward to the new year.


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## Feemar5 (4 Dec 2018)

Congrats on your windfall - I would pay off the car loan and if you wanted you could put the amount that you are you are currently paying for the car  into a special account for the children or maybe a family holiday.  You won't make much interest but it would be there for emergencies or treats !!    You need to check that you would not be penalised for paying off the car loan early.   Enjoy your luck !


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## Purple (6 Dec 2018)

Pay off the car loan, go on a nice family holiday (memories last a lifetime and all that) and take the rest off the mortgage.


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## pedromendez (9 Dec 2018)

Thank you all for the suggestions, that's helped me a lot!

I had thought about putting a sum of it away for the kids (for college fees, etc in the future), but yes I can see the benefit of the suggestions you've all mentioned instead. The car loan yes, ill plan to clear that off if I can do so without any payment penalties. 

Just in terms of paying off a lump sum off the mortgage - what is the best approach when doing this? 
Simply make a lump sum payment - so I will be in an advanced position on my re-payments?

Thanks


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## RedOnion (9 Dec 2018)

pedromendez said:


> Just in terms of paying off a lump sum off the mortgage - what is the best approach when doing this?
> Simply make a lump sum payment - so I will be in an advanced position on my re-payments?


The bank will recalculate your monthly repayment based on the reduced balance.
Actually, they'll ask you if you want to reduce term or amount. Reduce the amount as it'll give you more flexibility.
Of course, don't forget to re-evaluate your mortgage protection. You might be able to reduce cover after paying a lump sum, so not a bad idea to get a few quotes.


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