How much did you have saved up?

[BTR1208]

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I am 2nd year undergrad and moving out next year.. I plan on having about 7k in savings just in case. I am afraid that is not enough..Dont know if this need to be in the financial aid thread or not but I figured since you all are heading down the same path as me it would be okay. So did you guys have any kind of savings account established?

Also, should I use this for living expenses or go ahead and take out loans and invest the money in another way?

Thanks!

 

[235788]

I am 2nd year undergrad and moving out next year.. I plan on having about 7k in savings just in case. I am afraid that is not enough..Dont know if this need to be in the financial aid thread or not but I figured since you all are heading down the same path as me it would be okay. So did you guys have any kind of savings account established?

Also, should I use this for living expenses or go ahead and take out loans and invest the money in another way?

Thanks!

loans bud.

I have a roth ira that i drop money in each year - so i can't touch it.

 

[plumhill]

It depends...when you say "moving out," do you mean that you'll be completely independent from your parents/guardians/whoever, or you'll just be living elsewhere with some financial support?

Your first priority should be to make sure you have enough to pay whatever you're required to in tuition, room, board, etc. I don't know your financial situation or your expenses so I don't know if $7k is enough for you. Save as much as you can (I'm no financial guru, but my mom told me to put at least 25% of all my earnings into my savings account). If you are able to take out loans, do so, but only take out what you need to, and don't take out loans so you can invest your $7k elsewhere. If you have any leftover money at all, investments should be short-term and small, because we're still in a bit of a free-fall.

You should be asking these questions to a financial aid counselor at your school, by the way.

 

[BTR1208]

It depends...when you say "moving out," do you mean that you'll be completely independent from your parents/guardians/whoever, or you'll just be living elsewhere with some financial support?

Your first priority should be to make sure you have enough to pay whatever you're required to in tuition, room, board, etc. I don't know your financial situation or your expenses so I don't know if $7k is enough for you. Save as much as you can (I'm no financial guru, but my mom told me to put at least 25% of all my earnings into my savings account). If you are able to take out loans, do so, but only take out what you need to, and don't take out loans so you can invest your $7k elsewhere. If you have any leftover money at all, investments should be short-term and small, because we're still in a bit of a free-fall.

You should be asking these questions to a financial aid counselor at your school, by the way.

Yes completely independent. It is just if I use this money this year it will be gone, I would like to put it somewhere and let it grow. I get half tuition at IU so around $4,500 than just have to pay living expense, which I have budgeted 1k/ month..I am moving in with my girlfriend so we are splitting a 1br.

Good call on the financial aid counselor. going to make an appointment this week!

 

[BurntFlower]

0.

 

[gmcguitar4]

IMO, take loans for the living expense and hold onto the money for other things like spending money/travel/emergencies. Most investments are not too good for students at this point in time. Interest rates are just so low and the market is unpredictable. Stay away from stocks unless its looonng term. But if you do any type of investment, just make sure it is verrry liquid. Under your mattress is a good place to start.

 

[plumhill]

Interest rates these days suck, so your money won't be growing a whole lot (although I agree, some growth is better than none at all). What sucks even more though is the interest you might have to pay on loans, depending on where you get them. I know you mentioned getting half-tuition at IU...do you also have the option of work-study or any other financial aid through the school? I'd also start looking for external scholarships, grants, and the like. It might just be a personal opinion but I still think you should do whatever you can to avoid taking out loans, and then if you have to, take out the BARE minimum.

 

[gmcguitar4]

Thinking more about it..look into money market savings accounts. 7k might not be enough but they are pretty solid place to keep your money in.

 

[BTR1208]

about 85 grand.

If you know nothing of conventional investing, then you are better off avoiding loans as it will equate to you making a 7,8,9,etc% NET return with said financial decision (i.e. you are avoiding interest)...

Anyway, you wouldn't want to put your load 100% in stocks, so something like 3k really isn't going to do much in the markets. Hell, even if you do okay and make 10% on your portfolio, what's that? $300? ...minus taxes minus commision fees. Blah.

PS (edit): make sure you keep a cushion fund

85 grand? All on your own? That is awesome!

Good advice also!

 

[BTR1208]

IMO, take loans for the living expense and hold onto the money for other things like spending money/travel/emergencies. Most investments are not too good for students at this point in time. Interest rates are just so low and the market is unpredictable. Stay away from stocks unless its looonng term. But if you do any type of investment, just make sure it is verrry liquid. Under your mattress is a good place to start.

That is what I was thinking about doing. Just leaving the 7k in my account and taking loans out for my education.. Hopefully I can get private loans. is taking 10k a year out in private loans unheard of? I am just 20 and have limited credit with lack of a strong cosigner (parents are idiots).

 

[BTR1208]

bump.. anyone?

 

[45408]

when I moved out from the parents, I had about $7K in savings, and a scholarship for the rest of college (only one year left, lol).

 

[investing101]

Don't do stocks. We have a bad economy and there are no signs it is getting better. Invest in things that have an inverse relationship to inflation.

 

[link2swim06]

Don't do stocks. We have a bad economy and there are no signs it is getting better. Invest in things that have an inverse relationship to inflation.

I realize your username is investing101 but have you looked at the market over the past year? Everything has been climbing alot the past year in the world of stocks.

 

[IMSingular]

loans bud.

I have a roth ira that i drop money in each year - so i can't touch it.

You can if you pay 10% penalty. Your income is going to be low so there will be no income tax if you witdraw slowly say about $12000 per year that will be covered by exepmtion, personal deduction and $4000 tution credit.
You surely should do this if you have to take Grad+ loan (or it is not Roth IRA so 10% will be less than income tax you will be paying later) which charges 4% upfront fee.

 

[brandxnew]

Buy Apple stock.

 

[crimedawg]

.

 

[crimedawg]

loans bud.

I have a roth ira that i drop money in each year - so i can't touch it.

How do you "drop" money in a Roth? Technically, you have to have income in order to contribute. Parents?

And you can " touch" it, but you pay penalties and fees.

I didn't read the dudes post a couple above mine - he is right

 

[tantacles]

How do you "drop" money in a Roth? Technically, you have to have income in order to contribute. Parents?

And you can " touch" it, but you pay penalties and fees.

I didn't read the dudes post a couple above mine - he is right

Technically, you can touch the principal balance in a Roth without paying fees - it's withdrawal beyond the principal amount that incurs them.

 

[235788]

How do you "drop" money in a Roth? Technically, you have to have income in order to contribute. Parents?

And you can " touch" it, but you pay penalties and fees.

I didn't read the dudes post a couple above mine - he is right

Honestly, parents.

I did have income in undergrad - I would make about 7-8k each summer.

You can touch it, but i'm not. Its not like a saving account or even a tdameritrade account where you conveniently wire things.

 

[kpcrew]

Don't do stocks. We have a bad economy and there are no signs it is getting better. Invest in things that have an inverse relationship to inflation.

yeah because buying when prices are low and companies are undervalued is a terrible idea. better send this news to warren buffett.

 

[kristinairene]

Even though I work full-time it's hard for me to save money because of the bills that I have ie: 1 credit card, rent, smud, pg&e and unexpected school related expenses since I don't qualify for financial aid. You should always keep money somewhere where you know you wont touch it. I'd rather not do investment first since our economy is still bad and who knows what might happen next.