The Right Investment And Paying Debt


After college, your concern shifts. You start looking for that good paying job and you start thinking of where to invest and keep your money so that it works hard for you. You need also to consider on how to pay the student loans that you availed of.

Earning that college degree is an upside for you. Your career can be a promising one. However, that student loan that worked your way through college needs to be paid off. How do you balance investing and paying that student loan?

What you need to consider

Every graduate has his or her own financial problem. There are a lot of books on how to manage finances, books that give you advice on money problems. However, there isn’t a solution that one could say: “This is what I should do” because your situation may be different from what the author has in mind.

Consider the interest rates

There are a lot of loans advertised out there. Different loans offer different interest rates. You need to make a research on which loans offer lower interest rates. Also consider other provisions on the loan package, terms of payment and mode of payment.

If you plan on getting that loan, ensure that you have the right finances to pay off the monthly or quarterly interests.
Where to invest your money

Ask financial planners and they will give you different modes of investing that hard earned money of yours. Where you will place your money should be a vehicle that you are familiar with. Get in the habit of researching before jumping into a decision. Remember also that the greater the risk there is in your investment the higher the potential of returns. Take for instance investing in stocks rather than bonds. You have greater chances of higher returns when you invest in stocks rather than in bonds. In bonds though, you are assured of lower risk and a steady percentage of return.

How much is your income?

To pay off that debt and make that investment, you need to earn money. Is it enough to pay your debt? So that you can earn more, you can do more than one job. If you have your day time job, you can do part time at night through tutorials. You can do online tutorial from home or go to tutorial centers and teach students. This way, you can grow your income and you can invest more and pay that debt fast.