Should I Increase My Savings Or Should I Take The Extra Money And Further My Education?

By Increase Savings | Published: June 11, 2009

I am a part time student with a steady job and allocates a portion of my income to savings. I recently got a salary increase and has been wondering , due to the current and worsening state of the world’s economy, should use the money as savings for a stormy day or should I use it to further my education.

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4 Comments

  1. Fred H
    Posted June 11, 2009 at 10:09 am | Permalink

    Head to your local community college, take your lower division reqs, and save whatever money you can.

  2. Vadalia
    Posted June 11, 2009 at 10:42 am | Permalink

    It depends on what you mean by “further my education”? If you’re thinking about using the money to pay for getting a degree that will give you better employment opportunities you should do that, however since you’re already a part-time student, you’re probably in the process of that as we speak. If you’re talking about paying down any student loan debt you have, it really depends on if that debt is accruing interest right now. If it is, pay it off. If not, leave it for now.
    However, with the economy being so cruddy, this is actually a perfect time to invest (the stock market is down so you can get some really good, strong stocks for a very low price) Since you work and I assume you’re relatively young, you should look into a Roth IRA. You can contribute up to $4000 after-tax dollars per year and, when you retire, withdrawl all the money free of federal tax. If you’re, say, 22 years old now, that money will have 40 years to grow until you retire (assuming you retire at 62) and you won’t have to pay any federal taxes on all that growth.

  3. Maxine H
    Posted June 11, 2009 at 4:46 pm | Permalink

    you could do either one. but that doesn’t answer your question does it?
    well I say that you might already be investing in a good education.
    Keep putting your money away in savings.
    I would watch what I am putting my money into right now.

  4. The Muse
    Posted June 11, 2009 at 5:17 pm | Permalink

    I would keep some for that stormy day and use the rest to go back to school. You’re young enough to earn a better salary after schooling and earn lots of money to rebuild a retirement nest egg.

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