| Debating this with a friend 15:25 - Sep 25 with 7852 views | _clive_baker_ |
What would you say is a lifechanging amount of money to win? Probably subjective based on personal circumstances but I'm curious.
He laughed at me when I said £100k, reckons its too low to be life changing. I made the point that if I dropped that amount off my mortgage I could maintain the same monthly payments I make now, at the same rate, and pay it off 15 years earlier! Saving me £270k of payments. Appreciate it isn't millions, and arguably doesn't change my life in the sense I would still have to work and what not, but its a material amount IMO. |  | | |  |
| Debating this with a friend on 15:28 - Sep 25 with 5190 views | The_Flashing_Smile |
Yeah, before I opened your post I had £100k in my head, for the same reasons. £100k would lift such a weight off my shoulders that it would be life changing in that sense. |  |
| Trust the process. Trust Phil. |
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| Debating this with a friend on 15:32 - Sep 25 with 5158 views | WeWereZombies |
£3million, because then I would feel able to afford a Ferrari. Which I would wrap around a tree. And that would change my life...
But seriously, £3 million would allow me to travel more or less where I wanted in a better style than I do now, for the rest of my life. I reckon I could even afford a box at Portman Road as well. |  |
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| Debating this with a friend on 15:34 - Sep 25 with 5141 views | Zx1988 |
I think it depends on how you define life-changing.
For me, I'd consider a sum of money which would allow me to pay off my mortgage to be life-changing. It would free up a four-figure sum each month, and completely change how I'm able to live my life.
Anything more than that would just alter how my life would change as a result. |  |
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| Debating this with a friend on 15:37 - Sep 25 with 5109 views | SouthfieldsBlue |
Agree that is eliminating housing costs. That I think for most people would double if not triple their disposable income a month, and would feel life changing in terms of standard of living. | | | |
| Debating this with a friend on 15:39 - Sep 25 with 5076 views | _clive_baker_ |
| Debating this with a friend on 15:32 - Sep 25 by WeWereZombies |
£3million, because then I would feel able to afford a Ferrari. Which I would wrap around a tree. And that would change my life...
But seriously, £3 million would allow me to travel more or less where I wanted in a better style than I do now, for the rest of my life. I reckon I could even afford a box at Portman Road as well. |
Ludicrous!
What couldn't you do with £2m that you can do with £3m? | | | |
| Debating this with a friend on 15:40 - Sep 25 with 5062 views | _clive_baker_ |
| Debating this with a friend on 15:28 - Sep 25 by The_Flashing_Smile |
Yeah, before I opened your post I had £100k in my head, for the same reasons. £100k would lift such a weight off my shoulders that it would be life changing in that sense. |
I'm with you. I think the emotional (for want of a better word) impact of moving from 'need' to earn a certain amount to 'nice to have, but can make do on significantly less' would be hugely beneficial to my everyday mental state. Physical too probably. | | | |
| Debating this with a friend on 15:44 - Sep 25 with 5024 views | homer_123 |
Whilst eminently sensible to drop that off your mortgage.
£100k, if used differently - could lead to significantly more than the amount you'd save on interest over 15years.
So, you are not wrong but I think to really make the best use of your £100k, you need to be a little more strategic with it. But it could still be life changing. |  |
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| Debating this with a friend on 15:45 - Sep 25 with 5010 views | homer_123 |
| Debating this with a friend on 15:37 - Sep 25 by SouthfieldsBlue |
Agree that is eliminating housing costs. That I think for most people would double if not triple their disposable income a month, and would feel life changing in terms of standard of living. |
See my post. It's sensible and not wrong but you can get far more from your £100k if used differently. | |
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| Debating this with a friend on 15:47 - Sep 25 with 4988 views | WeWereZombies |
| Debating this with a friend on 15:39 - Sep 25 by _clive_baker_ |
Ludicrous!
What couldn't you do with £2m that you can do with £3m? |
Not sure, I haven't really costed things out.
But it sounds like you are expecting me to make do with a Hilux on my nine month African safari when I really want a top of the range Land Cruiser... | |
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| Debating this with a friend on 15:48 - Sep 25 with 4983 views | Stu_boy |
Depends on the definition of life changing, you could win £30 spend it on an ITFC match ticket and suddenly you've massively enhanced your life | | | |
| Debating this with a friend on 15:49 - Sep 25 with 4980 views | Daninthecampo |
| Debating this with a friend on 15:39 - Sep 25 by _clive_baker_ |
Ludicrous!
What couldn't you do with £2m that you can do with £3m? |
Depends on your age But 3 mil compared to 2 mil is a huge difference if you want to comfortably live just the returns. If you're travelling alot in nice places you'd could easily burn through 80k pa (4% return)
Back to the original question clearing your existing mortgage would certainly change most people's lives forever | | | |
| Debating this with a friend on 15:50 - Sep 25 with 4969 views | giant_stow |
Depends what stage in life you're at really. 50 grand could be a deposit for a younger bod and life changing. Might not touch the sides for an older bod with a massive family. |  |
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| Debating this with a friend on 15:51 - Sep 25 with 4955 views | EdwardStone |
| Debating this with a friend on 15:32 - Sep 25 by WeWereZombies |
£3million, because then I would feel able to afford a Ferrari. Which I would wrap around a tree. And that would change my life...
But seriously, £3 million would allow me to travel more or less where I wanted in a better style than I do now, for the rest of my life. I reckon I could even afford a box at Portman Road as well. |
In happier days I had a box at Portman Rd
Well, more of a milk crate, truth be told
I think many posters have nailed the nub of the issue, it is the ludicrous cost of housing that completely cuts across the enjoyment of life.... if there were some way of bringing down the cost of a roof over one's head, the general well being of the wider population would be raised immeasurably |  | | |
| Debating this with a friend on 15:53 - Sep 25 with 4937 views | Dubtractor |
I'll go with £250k. Would mean paying off what's left of the mortgage, which would be a game changer in terms of not needing to work all the way to retirement. |  |
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| Debating this with a friend on 15:56 - Sep 25 with 4891 views | J2BLUE |
A little goes a long way if used wisely. I would agree 100k would be a very nice amount.
If you could get a long term annual average return of 5% above inflation (or pay off debt at higher percentage) it would be a good amount. |  |
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| Debating this with a friend on 15:58 - Sep 25 with 4865 views | Help |
I believe they say £3m is enough to live of the interest, though they may have changed. |  |
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| Debating this with a friend on 16:09 - Sep 25 with 4793 views | Swansea_Blue |
| Debating this with a friend on 15:58 - Sep 25 by Help |
I believe they say £3m is enough to live of the interest, though they may have changed. |
Should be! £3M in an investment bond, which allows you to take out 5% per year tax free (or more strictly, deferred), is £150,000 per year take home. So equivalent to a gross salary of over £260k. Most people could probably get by on that. |  |
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| Debating this with a friend on 16:12 - Sep 25 with 4783 views | _clive_baker_ |
| Debating this with a friend on 15:44 - Sep 25 by homer_123 |
Whilst eminently sensible to drop that off your mortgage.
£100k, if used differently - could lead to significantly more than the amount you'd save on interest over 15years.
So, you are not wrong but I think to really make the best use of your £100k, you need to be a little more strategic with it. But it could still be life changing. |
Potentially, if I could make a 4% annual return on it then you're right there net benefit is smaller. Would have to consider the opportunity cost but I think the psychological impact of reducing debt would be great. | | | |
| Debating this with a friend on 16:14 - Sep 25 with 4770 views | Illinoisblue |
I quite often play around with the amortization calculator and see what paying a bit extra on the mortgage would do to finances. I think your 100k scenario is mildly life changing but I think an amount that means you wouldn’t have to work is the magic number. |  |
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| Debating this with a friend on 16:20 - Sep 25 with 4710 views | _clive_baker_ |
| Debating this with a friend on 16:14 - Sep 25 by Illinoisblue |
I quite often play around with the amortization calculator and see what paying a bit extra on the mortgage would do to finances. I think your 100k scenario is mildly life changing but I think an amount that means you wouldn’t have to work is the magic number. |
£350 overpayment per month would reduce my mortgage by c. 10 years and save £75k of interest at an assumed constant rate of 4%. The point around opportunity cost is certainly valid, if I invested that £350 monthly and made a 4% return I could build a similar level of additional equity through other means, but generally speaking in reality interest rates on debt are higher than on savings. There are of course other ways to generate higher returns. | | | |
| Debating this with a friend on 16:35 - Sep 25 with 4631 views | itfcjoe |
I'd say about £250k or thereabouts.
Enough to basically pay of the mortgage and then it's just such a gear shift in everything else you can do in life (plus ensure Mrs itfcjoe then doesn't decide to move house!)
It would be a nice amount to get/receive/win where it means it changes life positively but not totally - i.e. we'd still keep the same jobs, same house, kids in same school etc - but it would just be less stressful, better holidays, more savings, etc |  |
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| Debating this with a friend on 16:38 - Sep 25 with 4590 views | jontysnut |
| Debating this with a friend on 15:37 - Sep 25 by SouthfieldsBlue |
Agree that is eliminating housing costs. That I think for most people would double if not triple their disposable income a month, and would feel life changing in terms of standard of living. |
However the day I paid off my mortgage coincided with the opening of the latest branch of the bank of mum and dad. One hand gives... |  | | |
| Debating this with a friend on 16:44 - Sep 25 with 4556 views | Illinoisblue |
| Debating this with a friend on 16:20 - Sep 25 by _clive_baker_ |
£350 overpayment per month would reduce my mortgage by c. 10 years and save £75k of interest at an assumed constant rate of 4%. The point around opportunity cost is certainly valid, if I invested that £350 monthly and made a 4% return I could build a similar level of additional equity through other means, but generally speaking in reality interest rates on debt are higher than on savings. There are of course other ways to generate higher returns. |
We got burned in the mid 00s, just before the crash. Had been putting in extra few hundred bucks each month, trying to be sensible. Then house prices took a massive dive and we ended up selling a house we bought for $355k for $250k. Top tip, kids; if you’re bringing money to a closing you’re doing it wrong! That stung for a while. But long game and the “it will all work out in the end” theory seems to be mostly correct. Jobs took us to a different state, got a steal of a house for $283k which is now worth around $600k. Largely irrelevant as we’re not moving anytime soon but nice to be on the right side of equity rather than in the hole! | |
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| Debating this with a friend on 16:53 - Sep 25 with 4473 views | homer_123 |
| Debating this with a friend on 16:12 - Sep 25 by _clive_baker_ |
Potentially, if I could make a 4% annual return on it then you're right there net benefit is smaller. Would have to consider the opportunity cost but I think the psychological impact of reducing debt would be great. |
Absolutely. | |
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| Debating this with a friend on 16:56 - Sep 25 with 4441 views | homer_123 |
| Debating this with a friend on 16:35 - Sep 25 by itfcjoe |
I'd say about £250k or thereabouts.
Enough to basically pay of the mortgage and then it's just such a gear shift in everything else you can do in life (plus ensure Mrs itfcjoe then doesn't decide to move house!)
It would be a nice amount to get/receive/win where it means it changes life positively but not totally - i.e. we'd still keep the same jobs, same house, kids in same school etc - but it would just be less stressful, better holidays, more savings, etc |
The issue is that 'we' tend to live to our means.
So, the assumption with £100k or £250k is that your expenses would remain they same, invariably they don't - the extra monthly income would be spent.
That's why £100k or £250k used strategically to generate additional income is better. I take Clives point about the peace of mind or being mortgage free but I've seem so many people burn through considerable amounts of money. | |
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