Hivemind help - Lump sum advice please
Throwaway for anonymity.
Hi hivemind - please advise on the best course of action for a 50k lump sum.
Caveat is we probably need it before year end as my husband’s a freelancer and his biggest contract comes to an end now in September with not much lined up.
I’m an entrepreneur who just did 250k turnover last month and on track for close to that this month. About 180k of that to wages, op ex, tax, etc. I pay myself 25k for now and keep the rest in the business but can formalize a loan agreement with myself and business if necessary or start to pay myself more (actually unclear what’s best tax wise).
Total monthly expenditure is about 55k - incl bond, med aid school, insurance etc. One car paid off. I’ve also been putting extra in a savings earmarked for the bond payments (fluctuating husband income made me cautious).
My thoughts:
- Keep in savings for use in case
- throw to the credit card (180k in debt) to get the minimum payment down (about 9k) with interest of 15% to use in case.
Im embarrassed it got this far, I had a lot of medical expenses over the last 4 years - discovery is finally covering my 120k annual medication to stop lesions growing in my brain & spine, I had to ‘fail’ two other treatments first that were out of pocket.
Very little other savings like under 5k, no retirement as yet (have just finished long phds and finally starting life).
Any advice please. I appreciate you! Happy to answer any follow-ups.