I have just completed NS and saved up about $20k. I am planning to use this money to pay for my Uni school fees too. Should I still invest while paying for my school fees?

Congrats on ORD and starting a new chapter in your life!

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When it comes to savings, we should always start early (as early as one can), save little and save often. As a beginner, I have recently started my financial journey with Hugo Save, a digital account that helps you spend, save & invest, starting with gold.

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I feel that the returns provided by the banks are extremely conservative and does not really make your money work as hard as you would want it to while I found investing in gold super interesting particularly as I want my money to grow but without the volatility that comes with investing in high risk options.

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Based on my research, gold had an average annual returns of 10.61% between January 1971 to December 2019, which shows why having some amount of gold in ones's portfolio makes sense. It's certainly more return than what you would get in your bank account! This article should help as well - https://bit.ly/case4gold

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Goal

Firstly, I will suggest for you to create a well-defined goal. For example, understand the total school fees that you will need to be paying at the end of each school term. Furthermore, determine your income potential and expenses during this period.

Here is a Guide:

Understanding Your Personal Cash Flow

Surplus / Shortfall

After we have these information, you will know exactly how much is your surplus or shortfall for your goal (e.g. school fees).

If you will have a surplus, then you can use this amount to invest. In effect, we are taking the conservative route to ensure that you pay your school fees on time.

Banking

Meanwhile, if you are between 18 to 26 years old, then you should consider Standard Chartered JumpStart account. This is because it gives an interest rate of 2% per annum for your first $20k balance. Furthermore, there is no fees and minimum balance required in order to maintain the account.

Moreover, it comes with a debit card that gives you 1% cashback on eligible spending. With this in mind, it is certainly a worthy account for a start.

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