14 Aug 2020
Hi there, I have to say great job at saving that $10k!
At that age, I think I only came close to saving around 10% of that figure. My take for this will come through on the know how to fund your degree portion. The portion of investing you might have to do your own research, because I am still trying to figure that out for myself. :)
This was how I funded my school fees, which totaled up to $40k not including interest or admin fees. Although I wasn't able to pay my school fees before school finished, I would have to say there were a few things that helped. I hope to share my story so you can also have a feel of the possible scenarios you can try or not try for your own journey.
So some of the things which I felt helped:
For my case, I managed to pay for up to 70% - 80% of my loan before I graduated. To ensure I can pay within a year or less, I took $500 of my salary every month to pay my loans. It was a high percentage of my salary then, however I could get by as I didn't go for any major holidays during that year and my cost of living at that time was pretty low.
It is important to know that there will always be opportunity cost to how you use cash - whether to put it into investing or to fund your education. I hope this helps you see better the opportunity costs of not paying your school fees before graduation (haha that there are implications post graduation). Also wishing you the best in your investment journey. :)
Here's what you can do. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.
You can read here for a better understanding.
I work at kristal.AI, and my mojo is to help people make the right financial decisions. If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.
I hope this helps you make the right decision.
Hey! You might wanna consider using a safer option for starters such as an endowment. Its looking lo...
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