[Finance] How would you make £50k from £1k

[Tim Over Whelmed]

You don't understand, the car was essential I would not have purchased one if it wasn't and buying one outright is better for us than leasing one, the amount I paid was one eighth of my inheritance, I have not yet gone ahead with the bathroom and kitchen which desperately needs doing but not essential unlike the car.
I do not buy big ticket stuff unless a) I can afford it and b) it is really needed.
This is going off the rails a bit, just asking for ideas because I may be prepared to gamble £1k to pay the £50k if I am successful then I can pay that off, get the new house stuff and still pocket the rest.
All my options are still well and truly open.
(The old car was a gift from my wife's sister just as we was going to get one 5 years ago, we ran it into the ground and it failed its mot, to repair it was more than its value, it had to go, we needed a better car for our many trips from Plymouth to London and the SE)
The £50k debt is and will be paid off but I want to try and pay it off allowing my missus to leave her job but I don't want to blow all the dosh.

I may be being overly simplistic here BUT the loan must attract interest and shirley you'd just pay that off, before car etc, and then work with what you have? If you used the monthly payments to pay into a pension you'd get a lump from the good old HMRC each time and, before you know it, you'll have built up the pension pot and the 25% tax free lump sum?

 

[Wozza]

I was waiting for that question.
I have come into quite a sum of money, I have already purchased a nice car and I have set aside a sum to spend on the house, the remainder I want to set aside as a tidy sum to retire on, along with pensions we should be comfortable in our retirement.
But we owe £50k and we are slowly paying it off but the payments are a problem for Mrs Chopper as she wants out of her job but can't all the time we have this amount to pay off.
I could pay it off but it will leave us with hardly anything left after spending on the car and house.
But with all the dosh I have at the moment I can lose £1000 to try and get £50000, pay the bill and still have my nest egg intact.
I am 58, Mrs Chopper is 3 years younger so retirement is looming.

This is all quite bonkers.

£50k is a huge personal debt, by most measures. If you have the money, it should obviously be paid off asap. You're lucky to have that opportunity and should feel ruddy relieved.

Then the missus can change job, or you can put a time limit or something. And/or work hard for a few years to gain a nest egg (and feel great about it) - way, way more motivating than paying a never-ending debt... and interest.

To put it another way, I'm sure you wouldn't consider simply paying the 'spare' £1000 off £50,000 - because it barely makes a dent in the large debt. But it one always thinks like that, it never gets paid off.

I mean really, you need professional help.

(Don't mean to be rude)

 

[Justice]

This is all quite bonkers.

£50k is a huge personal debt, by most measures. If you have the money, it should obviously be paid off asap. You're lucky to have that opportunity and should feel ruddy relieved.

Then the missus can change job, or you can put a time limit or something. And/or work hard for a few years to gain a nest egg (and feel great about it) - way, way more motivating than paying a never-ending debt... and interest.

To put it another way, I'm sure you wouldn't consider simply paying the 'spare' £1000 off £50,000 - because it barely makes a dent in the large debt. But it one always thinks like that, it never gets paid off.

I mean really, you need professional help.

(Don't mean to be rude)

First rule off business never ever blow your capital better to service a debt than lose your capital lump he’s doing the right thing IMO. Experienced property developers who may have a few million in the bank will always borrow for the next project it’s the smart way to go.

 

[Swansman]

First rule off business never ever blow your capital better to service a debt than lose your capital lump he’s doing the right thing IMO. Experienced property developers who may have a few million in the bank will always borrow for the next project it’s the smart way to go.

Is he doing any business though..?

Also is the second rule to put all your disposable money on some 50/1 three-legged donkey in a horse race and pray it wins?

 

[MJsGhost]

First rule off business never ever blow your capital better to service a debt than lose your capital lump he’s doing the right thing IMO. Experienced property developers who may have a few million in the bank will always borrow for the next project it’s the smart way to go.

There's a rather large difference between buying bricks & mortar and spaffing £1000 on a long-odds bet though isn't there?

 

[Springal]

First rule off business never ever blow your capital better to service a debt than lose your capital lump he’s doing the right thing IMO. Experienced property developers who may have a few million in the bank will always borrow for the next project it’s the smart way to go.

First rule of personal debt - if you cannot invest in something with a higher return, pay off debts drawing interest

 

[Justice]

There's a rather large difference between buying bricks & mortar and spaffing £1000 on a long-odds bet though isn't there?

All I’m saying if he has £50k keep the £50k in the bank and carry on servicing the debt. Of course he’s never going to make £50k from a grand unless Lady Luck shines on a roulette table and even then that’s only £35k if he hits a straight up number

 

[Nathan]

If you are going to bet on a 50/1 horse, I would recommend picking a race in Ireland and going e/w with the bet. They love a big priced horse to be placed. Looking at todays meeting at Gowran Park, they have had a 50/1 finish 3rd in the first race, 40/1 finish 4th in the 2nd race, 50/1 finish 3rd in the 3rd race. The next is off in about 5 minutes. **** it, you will not win, but at least we can close the thread.

 

[sams dad]

All I’m saying if he has £50k keep the £50k in the bank and carry on servicing the debt. Of course he’s never going to make £50k from a grand unless Lady Luck shines on a roulette table and even then that’s only £35k if he hits a straight up number

The Interest he will earn on 50k in the bank will be a lot less than the interest he is paying on a 50 k loan.

 

[Taybha]

A £500 E/W lucky 15 , 3 favourites around the 7/4 price in 8 horse or over races and a outsider in a 8 horse race of over 12-1 , odds are you will get at least 1 winner and 2 places which would cover the total spent so it gives you the option of another punt, obviously I wouldn't bet that sort of money but if I was given the grand that's how I would try to bump it up.

 

[Wozza]

First rule off business never ever blow your capital better to service a debt than lose your capital lump he’s doing the right thing IMO. Experienced property developers who may have a few million in the bank will always borrow for the next project it’s the smart way to go.

Sure, if and when you're making (significantly) more from the capital than the cost of the debt.

This thread seems to be mostly about spending rather than investing....

 

[lasvegan]

Ask Hillary…

https://www.nytimes.com/1994/03/30/us/hillary-clinton-turned-1000-into-99540-white-house-says.html

 

[Nathan]

125/1 finished 2nd in the 3.30 at Gowran Park,

 

[Justice]

The Interest he will earn on 50k in the bank will be a lot less than the interest he is paying on a 50 k loan.

True although it’s unlikely he will ever have the chance again to have £50k in the bank even if it is £50k you never know what might happen in the future interest rates my rise giving some decent buying opportunities I see the city boys are speculating heavy on an a rate rise.

 

[bomber130]

Ask Tony he been quite good at the gambling mullarky.


Sent from my iPhone using Tapatalk Pro

 

[sams dad]

True although it’s unlikely he will ever have the chance again to have £50k in the bank even if it is £50k you never know what might happen in the future interest rates my rise giving some decent buying opportunities I see the city boys are speculating heavy on an a rate rise.

If base rate rises, it will increase the cost of borrowing.
It's a no-brainer, if you have the money you should always pay off debt.
I noticed your earlier comment about property developers using borrowed money, but they can load the cost of their borrowing onto the price of the finished property.

 

[A1X]

Buy a laptop
Learn to write some code to email millions of people asking them for their bank details

Reckon you’ll have it in a week from some poor sod

 

[Wozza]

Buy a laptop
Learn to write some code to email millions of people asking them for their bank details

Reckon you’ll have it in a week from some poor sod

Or, if your English is good, simply offer copywriting services to scammers.

 

[Eric the meek]

I'll bet there's a few binmen on here tonight, looking to pick up a few tips on how to spend the odd spare £1000.

 

[HantsSeagull]

Buy 833 shares in Avacta on Aim market - not investment advice etc etc