facebookI am 22 yo this year. After working 1+ years, I've managed to save up about $10k. Planning to do my degree next year & thought of investing, but I might need that money to pay for a part of the school fees next year. Hope to receive some advice.? - Seedly

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Anonymous

14 Aug 2020

Random

I am 22 yo this year. After working 1+ years, I've managed to save up about $10k. Planning to do my degree next year & thought of investing, but I might need that money to pay for a part of the school fees next year. Hope to receive some advice.?

Discussion (17)

What are your thoughts?

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:

  • Due to my family's financial situation at that time, I had to pay off most of my loan. Or I had the perception that I would need to pay off most of it by myself. Therefore I considered help from the school as I wasn't confident of being able to do it alone. Hence I took it on myself to do a check through on the possible financial assistance the school provides. Once I checked that I fit the eligibility criteria, I did up my application and also spent time writing why I needed the bursary and how it will help me and my family's financial situation. I did this on the second year and third year of my degree. Both times I was fortunate to secure a different bursary to help fund some of my school fees. The total bursary amount came up to $7,000 which helped fund 10% of my school loans.
  • Being determined to pay off most of my school loan before school finished and being focused on paying up my school loan within a year of working. I felt this helped minimize the amount of interest I had to pay, I could also start earlier on putting most of that money into my savings and building my emergency funds, etc.

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. :)

Arpita Mukherjee

Arpita Mukherjee

07 Nov 2019

Level 8·Community Evangelist at Kristal.AI

Hi Anon,

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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