The Anonymous Widower

Using Zopa To Manage Cash Flow

Over the next couple of months, I have some moderate-sized bills to pay, like my Tax Bill and also some works to my house including the handrail. My pension will cover most of them, but I’m still a few grand short until the end of July, which is the last day, I can pay the Tax.

Normally, most people would liquidate an investment to make up the shortfall. And there’s always some extra charge from a middle-man, who presses the buttons, but does nothing.

But I have a sum of money invested in Zopa, which because of the nature of the site, generates a guaranteed amount of money each month, from repayments and interest from loans. Normally, these repayments peak around the first few days of the month, so until the end of July, I shall have two peaks, with a third due around the third or four of August.

Normally, I reinvest the repayments back in Zopa, but all money I receive until the end of July will be quietly moved out to my current account, so that I can pay my bills.

And then on the 31st of July, any surplus will be returned to Zopa.

The various transfers to and from Zopa will cost me a big fat zero.

June 3, 2015 - Posted by AnonW | Finance | Zopa