Finished JC last yr & I want to enter Uni this year. Parents want me to self fund my degree. Only have 3-4 months left before sch starts and I only have 2k saved. Help!! What should I do? - Seedly

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Asked by Anonymous

Asked on 11 Apr 2019

Finished JC last yr & I want to enter Uni this year. Parents want me to self fund my degree. Only have 3-4 months left before sch starts and I only have 2k saved. Help!! What should I do?

Should I get a student loan? which is good? Even if I work part time now I need 8k to get through one year of sch and there is also 1month dec hols once sch starts!!!!!! ALSO, should I be investing with my 2k and what do I invest in?

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Jansen Ng
Jansen Ng, Business Student at Ntu
Level 4. Prodigy
Updated on 07 Jun 2019

Do a check on ur inflows and outflows at the moment. -Do you have any side income at the moment? -Will your parents give u any money at all (uni fees, allowance, anything) -How much will you spend a month

Looking at your time frame, you dont really have the time horizon for investment. I suggest not investing this because u need the liquidity, and u dont wanna cash out when its bad times and lose money. 8k a year means $667 per month, ie u need to earn this amount minimally. Including your expenses, which may total to say, 300-600 a month depending on how u spend.

Considering this, you need to find higher paying part time jobs. $8/h isnt gonna make the cut. Tuitions are great if u are able to teach, but remember, a kid's academic future is impacted by u. Alternatively, find other sources where u can utilise ur skills. Take part in simple survey in sch which gives out $10-15/h or $5/20mins.

Apply for burseries if u are lower income. Apply for mid term scholarships if u can do so. If u study hard and have good skills, go for competitions/case competitions which gives 3rd place about 500-1k, and 1st place 3k-5k kind of award.

Alternative to above, u can take up a interest free tution loan till grad, and invest the money u earn because now the time horizon for the cash is 4 years - till after u grad. U can go for sti etf or ssb because u still need some liquidity, and prob not wan to take up too much risk

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Leonard Tan
Question Poster

17 Apr 2019

Thanks for your advice! Been inactive these past few days and trying to source for a part time job! Definitely forgot about bursaries I could apply for. Really helps:)
Alex Chua Cheng En
Alex Chua Cheng En, Pcme at Anderson Junior College
Level 3. Wonderkid
Updated on 07 Jun 2019

(Edited: summary below) I understand you because I am in the same position as you. It is just that I have national service and I have just completed it. Based on what I infer, you fail to get scholarship as most admissions have ended. A better choice after loans is getting a bursary from your university. Consult your university 's financial advisor. They will give you a better answer. At the meantime, are you under low income? If yes, financial assistance scheme. Bursary and financial assistance will lower your financial burden but you still need to get study loan. At the meantime, focus on your university to get a mid-term scholarship. Consult with your parents, how far can they support you during university?

What you can do from now till university is to use the time to get more cash, more savings for your university. Learn about personal finance too to maximise your cash flow during university. If you really want to invest, start with regular saving plans (sti etf) using the minimum amount ($50). This is meant for long term.

However, you need to ask yourself, do you know anything about investing. Without prior knowledge, you are losing more than you earn. Basically gambling. From your situation, you could hardly afford to invest within 3 months because you need the money when u start university . Is your choice of investment highly liquidable? Basically, high liquidity and cash inflow should be your focus. If you really want to earn money with money (invest), you could consider SSB. Low risk, low return. Better returns after locking for 10 years.

If you are really willing to take the risk, you can consider p2p- lending. The longest holding time is 12-24 months (may pay back monthly in instalment). The shorter is 30-90 days for invoice financing. Research about the various p2p lending platform before starting. Read the reviews from seedly and other financial blogs. I do make some comments about p2p lending and there are guidelines you could listen and apply to in the forum.

My personal advice is don't invest unless you learn to manage your money. Just focus on part time job. Furthermore, I do not get which is a better choice for you because there isn't anything for me to compare to. You ought to be asking yourself how you could improve or lighten your position. (former is how you could rephrase your questions and mindset) Even if you do take loans because you have no other better choices, how can u get rid of the debt within your comfortable means?

Summary: 1.it is actually OK to take loan. **The most important part is how you learn to deal with it after university or even during.

  1. Avoid investing because You need cash on hand to access anytime, not locking in investing.

  2. What I recommend you is learn to budget(spend wisely) and save smartly.

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Alex Chua Cheng En
Alex Chua Cheng En

13 Apr 2019

You could look into opening CIMB saving account to earn 1% interest
Leonard Tan
Question Poster

17 Apr 2019

Thanks Alex! Really like your perspectives against the problem of "lock up" cash in investments. Not something I really thought about as well!
Nicole Ng
Nicole Ng
Level 2. Rookie
Updated on 07 Jun 2019

Dont know why the answers here are long and focus on the investment part but I was in the same situation as you 3 years ago. Just take a bank loan and a well paying part time job like tuition throughout your uni years to finance the 10% of school fees that isn't covered by the loan. If your parents still give you pocket money, count it as a blessing because I was left to finance everything myself the moment I graduated from JC and back then I barely had $10 in my savings. It forced me to get my shit together LOL. Otherwise work hard and try to get a scholarship, but bear in mind the bond requirement.

Someone below mentioned case competitions and I agree with that. Pick one that you're confident of winning and hope that you're in luck haha.

Lastly, dont invest unless you've researched enough. Simple as that. With 2k to last you you'd probably not want to invest too. Save those plans for later when you've earned enough and are in a stable place.

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Leonard Tan
Question Poster

17 Apr 2019

Thanks Nicole for sharing that you went through it personally as well! Really makes me feel btr knowing someone went through the same process and emerged successful! And also thank you again to Alex- appreciate how passionate you are at helping me:)
Alex Chua Cheng En
Alex Chua Cheng En

18 Apr 2019

No problem. I am in the same position as well, just that for me is waiting for my freshmore to start in a month. Could hear other people opinion. Just simply short cut your scope of research
Kenny Tan
Kenny Tan
Level 2. Rookie
Updated on 12 Apr 2019

Are you studying in local U or private U? If local U, apply for student loan with free interest till you graduate. If private, find study loan with lower interest rate. Work part time such as tuition to earn while you study.

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Yong Kah Hwee
Yong Kah Hwee
Level 6. Master
Answered on 15 Apr 2019

Get a student loan. I took one; my friends got loans too. It is interest free whilst you are studying! So while you are studying, you may wish do take up part-time jobs / give tuition so that you have some money to repay the loan at the end of 4 years.

There's really nothing wrong with getting a loan. Better to get one than to be constantly stressed about paying school fees! If you aren't able to pay school fees on time, you might not be able to access your results / sign up for modules in the following semester!

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Ong Kang Yu
Ong Kang Yu
Level 1. Freshie
Answered on 13 Apr 2019

The priority is to have cash on hand for liquidity.

if you are enrolled to Government University. You may like to consider going for interest free loans; usually interest applies immediately - 3 months after graduation.

During this period, I cannot emphasise to plan your timetable wisely. Through the ”extra“ time, you may like to build up a sizeable (80%) or full amount of the loan by taking up some part time jobs, joining competitions, taking up more internships.

Hope it helps.

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