I just came into a wad of money... What do i do?
I'm in school full time. Im also a single mother. I live with my parents, so im not paying any bills (thankful for that!). Yesterday, a check came in the mail from my school for $3,200. I was completely taken by surprise. I had no clue what it was for until i called my school. They told me that financial aid coveres my tuition and whatever is left over, they send to me in a 'refund check'. The guy on the phone explained more in detail that some is from the grant and some is from the loan, but until im dont with school, i wont know the full amount. He also said i'd be getting a check for every semester that financial aid pays for my tuition.
As an entrepeneur at heart, i would love to start my own business (on the side of course) and be able to stay with my daughter at home. I currently work part time, but everyone knows that those hours arent guaranteed.
I know i have responsibilites and it wouldnt be the wisest choice to put the money into a business and then it fails. But if you dont risk something, you dont get far, right?...
How do the rest of you feel? If this was you and you knew you'd be getting a check every semester, what would you do with it? What should i do?
I would start, initially, by building a "safety net." (For me, that would be putting this whole first check into savings and not using it for anything but an emergency.) You are blessed to have the housing situation you do, but one never knows what the future may bring. Plus, you said "some is from a loan" so I would check (get something in wriitng) and make sure none of it must be paid back until after you graduate. Finally, I would make sure to research the business you'd like to start and make sure the odds are very good of it being financially successful, and not requiring repeated cash flow from you to exist.
I would put the money in a money market savings account and build it up to at least $10,000. Don't take any of the money out. Once you get over that amount, start saving for the business you want to start. What kind of business are you thinking about? Like the other person who posted said, research it to make sure the success rate is high.
A business takes a lot of time, and more money than you realize. I think you whould save this money for an emergency, and concentrate on school. If something happened unexpectedly, you need something to help you out of the hole. Be smart and save it.
I would mail that check right to my loan company!
Save it, pay down current debt, cut back on your PT job hours... do one of these. Start your business when you graduate.
I would also pay on the loan, and if it grant money that is not repaid, I would walk up to my parents, and them the check and thank them for me and my child living there...Trust me, with you and your child there, it costs them something.....whether they ever say anything or not....
Save it. Pay off the loan. The loaner is expecting you to spend it (that's how they make their money, on interest). The loan would hang over your head after school, especially if you don't find work (on your own or through and employer) in your field. It took us 10 years to pay off a small graduate school loan because of poor employment, and the interest nearly doubled the amount owed. It's a killer.
... #1 = Hope you do not have massive credit card debt ...@ a high % rate, pay off CRCD's 1st ... #2 = $1,000 to parents ... #3 = $1,000 in a ROTH IRA acct ... #4 = Whatever is left, goes into some type of savings acct. This will keep your credit history higher. Many 1st-time business owners go broke with-in 1 year of starting. Student loans will not be forgiven or written off, if there is a bankruptcy in the future. They must be paid.
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- KayyCeeJayy
on Feb. 12, 2013 at 10:08 PM