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"I have £50k. What should I do with it?"

ended 27. June 2025

Maybe you've inherited it, perhaps you've won it, but if you find yourself with £50,000 in the bank, what should you do with it? Financial and property experts have shared their views on the questions people should ask themselves when deciding what to do with a £50k windfall.

Graham Wells, Founder at GroWiser Financial Coaching, gets right down to the basics and says it's ultimately about your individual goals and needs: “It's fine to consider hints and tips from others about how to use money, but every person has a unique set of circumstances and perspective on life. Some will gain most, both practically and emotionally, from repaying debt, whilst others might prefer to invest for long term growth. If you have £50k to spend or invest, take time out and really consider what's best for you. In reality, it could well be a mix of different options.”

But he cautioned: “Be wary of those with strong opinions about how you should use your money. There is no such think as a safe, quick profit or risk-free returns. If it sounds too good to be true, it probably is.”

Philly Ponniah, Chartered Wealth Manager at Philly Financial, shared much the same view: “If you’ve got £50k spare, it’s tempting to jump straight into “what should I do with it?”. But the smarter starting point is actually: what does it need to do for you? Before you save or invest, get clear on your values and how you want to live. That clarity changes everything including how you use your money and spend your time. Start with your vision then you can be purposeful with your money.”

Gareth Hazelden, Director at Atlantic Capital Markets, said context is key: “Before making any recommendation, a proper adviser would always look at the full picture: age, goals, risk profile, income needs, and existing assets. A full fact-find is essential, not optional. Assuming a medium risk profile and no immediate need for liquidity, a balanced approach might include: diversified equities for long term growth; global funds or exchange-traded funds (ETFs) to spread sector and geographic risk; a cash reserve for flexibility; a modest allocation to alternatives or defensives to hedge volatility The goal isn’t just growth it’s control, resilience and alignment with your personal objectives. With the right structure, £50,000 can be more than spare capital, it can be a serious financial tool.”

Anita Wright, Chartered Financial Planner at Anita Wright, agreed: "The right mix depends on your goals, timeframe and risk comfort. But don’t leave your cash sitting idle. Make it work for you.”

Meanwhile, Scott Gallacher, Director at Rowley Turton, said clearing debts should be a priority: “If you’ve got £50,000 spare, first of all, clear expensive debts like credit cards for a tax-free, risk-free “return” equal to the interest saved. Next, consider Premium Bonds: with £50,000, you’re statistically likely to win some prizes, averaging around 3.6% tax-free, plus a shot at £1 million. Structured deposits are another option, offering potential higher returns than cash, with your capital protected, though returns aren’t guaranteed. Top savings accounts pay around 4.5%, or use a Cash ISA for tax-free interest. Keep an emergency fund handy, and consider long-term investing or pension top-ups for higher growth, though with some risk. Don’t leave cash idle in a low-interest account.”

David Belle, Trader at Fink Money, said Brits need to fundamentally rethink their relationship with risk: “Risk is a good thing, not a bad thing, yet many Brits are completely appalled by the idea of taking on any risk.”

He says investing in the biggest companies in the most powerful nation on earth - the US - is logical rather than reckless: "If you have £50k, the best thing you can do is invest half in the S&P500 and the other half in the top 10 of that index of the biggest Amercian companies to juice some outperformance. Many will say this is risky, but what is so risky about, firstly, investing in the 500 largest companies in the most powerful nation on most metrics in the world and, secondly, investing more in the top 10 companies in that index to try and capture innovation from the companies with a huge amount of capital? Nothing — and this is why the British attitude to risk needs to change."

Ross Lacey, Director at Fairview Financial Management, says it makes sense to start with the end in mind and work backwards from there: “If the money's going to be spent in a couple of years, then the most important thing is that it's accessible when needed. So, investing in the stock market or something more illiquid like property is unlikely to be a good idea. However, if the money's designated for something many years in the future, or if only portions of that money will be drawn over the coming years, then it may be worth exploring ways to grow it to keep its buying power. That's where investing in company shares and other assets other than cash could be considered.”

He also warned about inflation: "Remember that something costing £1 today will cost more than this in the future because of inflation - the gradual rises in price of the stuff we buy day-in-day out. This will eat into the value of the £50,000, so keeping it as cash in the bank for a long period is unwise."

Meanwhile, for Marie Johnstone, Managing Director at Wilson Property Group, buy-to-let is still an attractive proposition for many and that people should not rule out buying a small flat and renting it: “Bricks and mortar does not tend to lose money, history shows, unless you do not look after it. The value of property is a secure way to grow your personal wealth. The asset will always grow in value, and your mortgage is paid by charging rent to your tenants.”

But she also said another approach for some could be to "spend it making memories, as we only live once and none of us are guaranteed to be around tomorrow.”

11 responses from the Newspage community

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Graham Wells
Founder and Financial Coach at GroWiser Financial Coaching
It's fine to consider hints and tips from others about how to use money, but every person has a unique set of circumstances and perspective on life. Some will gain most (practically and emotionally) from repaying debt, whilst others might prefer to invest for long term growth. You might place most value on spending money on experiences and memories, whilst others might derive more pleasure from helping charities or gifting to family. There is no "right" or wrong" that can be applied generally to the whole population. If you have £50k to spend or invest, take time out and really consider what's best for you. In reality, it could well be a mix of different options. Be wary of those with strong opinions about how you should use your money. There is no such think as a safe, quick profit or risk-free returns. If it sounds too good to be true, it probably is.
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Philly Ponniah
Chartered Wealth Manager and Financial Coach at Philly Financial
If you’ve got £50k spare, it’s tempting to jump straight into “what should I do with it?”. But the smarter starting point is actually: why do you want to grow this money? What does it need to do for you? Before you save or invest, get clear on your values and how you want to live. That clarity changes everything including how you use your money and spend your time. If you're not sure what matters most to you, working with an expert can help you get that foundation in place. From there, the decisions get easier. Once you have a goal, here are a few clever options. If you're looking for short-term peace of mind, consider high-interest savings accounts or Premium Bonds. Longer-term growth? A Stocks & Shares ISA could help, if you don’t need the money for 5+ years. Tax-smart saving? You can earn up to £1,000 interest tax-free if lower rate (£500 if higher rate). A Cash ISA might be worth it once you’re close to that. Start with your vision then you can be purposeful with your money.
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
It all starts with what the money's for. It's going to be spent by you or someone else at some point, so it makes sense to start with the end in mind and work backwards. If the money's going to be spent in a couple of years, then the most important thing is that it's accessible when needed. So, investing in the stock market or something more illiquid like property is unlikely to be a good idea. However, if the money's designated for something many years in the future, or if only portions of that money will be drawn over the coming years, then it may be worth exploring ways to grow it to keep its buying power. That's where investing in company shares and other assets other than cash could be considered. Remember that something costing £1 today will cost more than this in the future because of inflation - the gradual rises in price of the stuff we buy day-in-day out. This will eat into the value of the £50,000, so keeping it as cash in the bank for a long period is unwise.
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Tony Redondo
Founder at Cosmos Currency Exchange
No option is fully risk-free, so, as always, it’s a question of balance between risk and reward. A well-balanced strategy could include clearing high-interest debt, keeping 3-6 months’ expenses in easy-access accounts, using your £20,000 ISA allowance, splitting funds across banks for FSCS cover, and avoiding over-saving in cash. Always sensible to consult a reputable financial advisor to align with goals. Low-risk options include fixed-rate bonds (4-5%, £54,500 in 2 yrs, £57,500 in 5 yrs), Cash ISAs (3-4%, ~£21,600 on £20,000 in 2 yrs), or high-interest savings (3.5%, ~£53,600 in 2 yrs). All are FSCS-protected up to £85,000, but inflation, currently at 3.4% will erode real gains. Stocks and Shares ISAs aren’t “risk-free” but suit long-term growth. Combine with Cash ISAs or bonds to diversify, balancing safety and potential returns.
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Anita Wright
Chartered Financial Planner at Ribble Wealth Management
I ran the numbers using Monte Carlo simulations to forecast how £50,000 might grow under different investment options and the percentage chance of doubling your money. Is there a simple, risk-free way to grow the money? Yes—but don’t expect miracles. Cash is low risk, but inflation erodes its real value, and it’s unlikely to double your money. If you’re prepared to take on a bit more risk, UK government bonds (gilts): ~£73,000 (7% chance), Balanced portfolio (60% shares, 40% bonds): ~£96,000 (25% chance), Global shares (equities): ~£135,000 (45% chance), Buy-to-let property: ~£93,000 (29% chance – not including mortgage or costs) The trade-off? More upside potential, but also more bumps along the way. For example, shares can fall in value in the short term – but historically, they’ve outperformed over longer periods. Investing isn’t a guarantee. The right mix depends on your goals, timeframe and risk comfort. But don’t leave your cash sitting idle. Make it work for you.
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Scott Gallacher
Director at Rowley Turton
If you’ve got £50,000 spare, first clear expensive debts like credit cards for a tax-free, risk-free “return” equal to the interest saved. Next, consider Premium Bonds: with £50,000, you’re statistically likely to win some prizes, averaging around 3.6% tax-free, plus a shot at £1 million. Structured deposits are another option, offering potential higher returns than cash, with your capital protected, though returns aren’t guaranteed. Top savings accounts pay around 4.5%, or use a Cash ISA for tax-free interest. Keep an emergency fund handy, and consider long-term investing or pension top-ups for higher growth, though with some risk. Don’t leave cash idle in a low-interest account!
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Deploying £50,000 mandates some fiscal rigour. First, eliminate high-cost unsecured debt and your effective return immediately becomes more compelling. For capital seeking modest growth, fixed-term deposits are nearer the 5% mark although you need to be vigilant at maturity to avoid reversion to derisory yields. NS&I offers security but not dynamic returns. Don't bother with Cash ISAs - they will produce negative real term returns. For those with suitable risk appetite and a longer time horizon, a globally diversified, low-cost equity index fund warrants consideration for potential inflation-plus returns, though you must naturally accept market volatility. Beyond that, perhaps resist the allure of acquiring another impressively depreciating asset for your driveway. Ultimately, objective analysis and disciplined execution are central to prudent wealth management in any economic climate. This is about preserving and thoughtfully growing your capital, not jumping at speculative ventures.
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David Belle
Founder and Trader at Fink Money
There is no such thing as a risk-free way of growing money unfortunately. And our concept of risk must change. Risk is a good thing, not a bad thing, yet many Brits are completely appalled by the idea of taking on any risk. But we have to — only 3% of median earning millennials are going to have a ‘moderate’ retirement according to the PLSA (Pensions and Lifetime Savings Association). If you have £50k, the best thing you can do is invest half in the SP500 and the other half in the top 10 of the SPX to juice some outperformance. Many will say this is risky, however I will ask, what is so risky about 1) investing in the 500 largest companies in the most powerful nation on most metrics in the world and 2) investing them in the top 10 companies in the SP500 to try and capture innovation from the companies with a huge amount of capital? Nothing — and this is why the British attitude to risk needs to change.
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Marie Johnstone
Managing Director at Wilson Property Group
Simple, buy a small flat and rent it out. Bricks and mortar does not tend to lose money, history shows, unless you do not look after it. The value of property is a secure way to grow your personal wealth. The asset will always grow in value, and your mortgage is paid by charging rent to your tenants. It's a longer term growth stategy, and more of safer pension plan than a monthly income. Otherwise, spend it making memories, we only live once and none of us are guaranteed to be around tomorrow.
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Ritchie Clapson
Co-Founder at propertyCEO
With £50k, consider converting a small commercial building (like a shop or office) into flats using permitted development. It’s not “risk-free” (nothing worthwhile is), but it’s a proven strategy with high returns. For example, you might buy a shop for £400k, spend £325k on the conversion, and £75k on finance - total cost £800k. If you sell for £1m, that’s a £200k profit.

The trick? You don’t need to fund it all yourself. Commercial lenders often lend up to 70% of the purchase and 100% of the build costs. Private investors can fund much of the deposit, and you may only need to put in around £12k of your own money. That means your £50k could fund 4 projects at once, therefore 4 x 200k= 800k profit.

Typical timelines are 18–24 months. This isn’t a passive or guaranteed strategy, but for those willing to learn, it can turn spare cash into significant six-figure profits - far beyond what savings accounts or BTLs can offer.
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Gareth Hazelden
Director at Atlantic Capital Markets
It’s a common question, but without context, a risky one to answer. Before making any recommendation, a proper adviser would always look at the full picture: age, goals, risk profile, income needs, and existing assets. A full fact-find is essential, not optional. Assuming a medium risk profile and no immediate need for liquidity, a balanced approach might include: diversified equities for long term growth; global funds or ETFs to spread sector and geographic risk; a cash reserve for flexibility; a modest allocation to alternatives or defensives to hedge volatility The goal isn’t just growth it’s control, resilience and alignment with your personal objectives. With the right structure, £50,000 can be more than spare capital, it can be a serious financial tool.