Author Topic: College Mustachian - what can I do next?  (Read 1326 times)

Cwadda

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College Mustachian - what can I do next?
« on: May 13, 2015, 03:17:43 PM »
I just finished my junior year of college with one more year to go. After undergrad I'm planning on going to graduate school immediately, which will be free - either covered by university funding or by my employer. My question is: I have extra cash right now and I want to do something with it other than let it sit in the bank collecting dust.

Assets:
Roth IRA $18,500 - 100% VTSAX (already maxed for 2015)
$8000 in checking
Car - I own outright (this isn't really an asset but it's noteworthy)

Debts:
$22k loan at 0% from my parents. Total expected debt after graduation is $40k. They refuse to be paid back until I graduate.

What would be the next thing to do with the $8000?

RexualChocolate

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Re: College Mustachian - what can I do next?
« Reply #1 on: May 13, 2015, 03:27:46 PM »
The biggest thing you can do in college is minimize your outflow and optimize your future earning potential.

I'm extremely wary of companies offering free graduate schooling to an intern. Sounds like they want to anchor you there.

I'd pay back my parents before I did anything. Since you're graduating in 12 months, I'd keep it in a savings account.

Cwadda

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Re: College Mustachian - what can I do next?
« Reply #2 on: May 13, 2015, 03:33:05 PM »
The biggest thing you can do in college is minimize your outflow and optimize your future earning potential.

I'm extremely wary of companies offering free graduate schooling to an intern. Sounds like they want to anchor you there.

I'd pay back my parents before I did anything. Since you're graduating in 12 months, I'd keep it in a savings account.

Yeah, I'm wary of that as well. I don't want to be bound to a company, especially if I want to move away down the road. I'm definitely looking to get university funding as a priority.

RexualChocolate

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Re: College Mustachian - what can I do next?
« Reply #3 on: May 13, 2015, 03:45:13 PM »
Universities don't fund part time graduate school and that's usually the best bang for the buck (with exceptions).

Typically going directly to graduate school is a wash/net negative when you factor in opportunity cost.

Yes, there are exceptions, but they are rare.

Cwadda

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Re: College Mustachian - what can I do next?
« Reply #4 on: May 13, 2015, 05:27:13 PM »
Universities don't fund part time graduate school and that's usually the best bang for the buck (with exceptions).

Typically going directly to graduate school is a wash/net negative when you factor in opportunity cost.

Yes, there are exceptions, but they are rare.

For my career path in the environment sciences and geosciences, it helps a lot. I've done extensive research into this - I even asked folks on here in the same fields.

nanu

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Re: College Mustachian - what can I do next?
« Reply #5 on: May 13, 2015, 05:38:02 PM »
Will you be needing those $8000 for expenses during the year? If so, keep them in a "high" yield savings account (like Ally or other online banks) that give 1% or so.

Another thing that I wish I had done earlier in college was to work on improving my credit score - if you open multiple cards now then
by the time you graduate they will be older which will likely improve your credit score. I got into this for travel hacking, but it can be beneficial regardless (by maximizing cash back for example).
AirBnb referral code for $25 off first reservation: http://www.airbnb.com/c/nroitman?s=8
TopCashBack referral code (we both earn $10): http://www.topcashback.com/ref/infer73

Cwadda

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Re: College Mustachian - what can I do next?
« Reply #6 on: May 13, 2015, 05:54:14 PM »
Will you be needing those $8000 for expenses during the year? If so, keep them in a "high" yield savings account (like Ally or other online banks) that give 1% or so.

Another thing that I wish I had done earlier in college was to work on improving my credit score - if you open multiple cards now then
by the time you graduate they will be older which will likely improve your credit score. I got into this for travel hacking, but it can be beneficial regardless (by maximizing cash back for example).

I won't need the $8000 at all. My monthly income is nearly double my expenses. What should I do if I don't need to use the money?

Thanks for the credit card advice. I started credit cards over a year ago. I have two right now with $210 combined cash back signing bonuses. I plan on opening another credit card in a few months.

nanu

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Re: College Mustachian - what can I do next?
« Reply #7 on: May 13, 2015, 06:08:35 PM »
And what about emergencies? Medical or otherwise? maybe a job loss for example? I'm not trying to bring you down, but bad shit happens, and you should be prepared.
AirBnb referral code for $25 off first reservation: http://www.airbnb.com/c/nroitman?s=8
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