£35,000 to spend a year on a child

Is it just me, or does Heather Mill’s anger at at £35,000 a year settlement, exclusively for her daughter (excluing nanny and education costs) seem extreme?

I notice that she did not seem happy, but I look at when I was growing up, our whole family expenses were minimal, I had to make my clothes last as their were no funds for replacements.

The money alone is more than many normal people actually earn in a year in quite high powered jobs.

So, what would you do with £35,000 a year.  Here’s a breakdown of some of the things I would do with an extra £35,000 a year.

£35,000 = £2,916 a month

My Mortgage – £500 – £2,416 remaining

Well firstly I would put aside £500 per month for my mortgage.  This is 3/4 of my current payments.  The reason for this is that, if I have 9 years left, paying another 3/4’s should cut my term down to about 5 years.  However, as the interest plays such a big part in any mortgage, in real terms it should shrink to around 3 1/2 – 4 years.  That would be nice.

 Foreign Property Investment – £2,000 – £416 remaining

Well, I already have a small house in France, which was nice and cheap back then, but property prices are rising.  Obviously I could not just go out and buy some, even with £35,000 a year extra.  However, as this money would be guaranteed, at least for a time period, I would take a foreign mortgage out for several properties in France.  In fact, I would probably try to buy the small Hamlet I live in, on a house by house basis.  Working on the fact that the average house price is around £50,000, and there are 14 houses in the hamlet (one of which is already mine). So Hamlet value is £650,000.  Working backwards, and forgive my maths, if a £40,000 mortgage is £160 per month for 25 years.  Then 10 houses would be roughly £500,000 £2,000 a month

 Shopping -£200 – £216 remaining

At last, the revenge of the shop brands.  My shopping bill is never small, but I would at least have the funds to move away from some of the own brands, to the mainstream brands that I used to be able to afford under a Conservative Government, (sorry sneaky political jibe there).

Rainy day fund – £216 – all spent

Unlike our current Government, i believe in storing some of my money away in case of problems down the line.

You may wonder why  I woudl direct money into new property rather than finish my property.  Well I believe that bricks and mortar will always rise in value, it may slow down, descend slightly, but in the end  will always rise.  My property is ok, as it is.  I have planned the payments and know the timescale.  I also feel that to spend too much on the house here, rather than invest in the properties abroad would be missing such an opertunity.  Also, with the properties on board, you could always then obatin funds by renting.  With 10 properties, at least 2 should rent, therefore returning about £400 – £500 per month which could be redirected to shrinking the mortgages or anything.  What would you do with the money?

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