Pay student debt or buy silver?

Discussion in 'Wealth Creation & Management' started by Arcanist, May 28, 2014.

  1. AngloSaxon

    AngloSaxon Active Member

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    Be careful with how much HECS or Fee-Help or HECSHelp or whatever it is called, you get. I've done numerous degrees on HECS and only just started paying it off in the last few years. I wasn't very sensible as a young man. I pay for it in extra taxation now. Don't make the same mistake.
     
  2. Miloman

    Miloman Active Member Silver Stacker

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    In order to edit your posts there's a joining fee of 1oz sent to Golden Pelican.


    As for the advice, you are very welcome. I think few here could sensibly argue with your new strategy.

    I do ask something in return... be kind to others in return where you are able. Learn more and continue to learn.

    Personally speaking all my knowledge and understanding especially in science has led me to Christ. I hope through your learning, examination of the world and experience you too will be led to Him.

    Also if you have any more questions simply ask away.
     
  3. shano73

    shano73 Member

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    Wow 5k at 18 your doing well:)

    Personally I would pay off all debt ASAP, I never like having it hanging around.

    But having said I would keep 2k for SHTF scenarios, as you never know what's around the corner, and as you said your starting an apprenticeship so you will need to kit your self out.

    I would then organise with your employer to take out say $50 a week and pay off the remainder of the debt.

    This will hold you in good stead for future endeavours and learn an appreciation of saving your money instead of pissing it all down the urinal.

    Too many kids these days want things NOW, and then get into further debt which the banks really love, cause you will be on the interest rate drip and pay the monthly minimum.

    Just my thoughts anyways.

    Cheers,
     
  4. rara200284

    rara200284 New Member

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    A notebook is your best friend, seriously. You can forecast what money you will need with a notebook. I write what my future months will look like. I write how much income I will be receiving, bills, misc expenses, etc. It gives you a general idea of the big picture.

    Most of what people are saying is true, but it is how YOU want to strategize. I think you can do all 3. You can save, pay a little of your debt, and get some silver. And the MOST IMPORTANT THING in my opinion is what you do in your FREE TIME. That is where the most of your money comes from. Is your free TIME. If you spend your free time learning how to make money, then it is not a waste but an investment.

    Good luck.
     
  5. Golightly

    Golightly Well-Known Member Silver Stacker

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    Not a 1 oz to GP anymore it's a 25$ one off payment.

    Way I see it your young will probably piss half it up the wall anyway, sparkies make plenty of coin even as apprentices and it's a tiny debt, buy silver IMO, wish I had at 18 as it was like $4.75 US then. Fiat won't be a problem in your future..

    Also this highlights the BS whereas apprentices used to get $500-$1200 a year in Government assistance not they get options on a 20k loan... Completely obscene.
     
  6. SilverDJ

    SilverDJ Well-Known Member

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    It almost certainly won't. Not to any point that any silver stack is going to really save your bacon.
    The markets might crash again, housing might stagnate or go down a bit, or even fair bit, but generally our lives aren't going to change much.
    Not unless you are mortgaged to the hilt and lose your job, or had every cent in spec stocks, and need to account for every last dollar, which isn't you.

    Pay off your loan now.
    Debt sucks, get rid of it as soon as possible, you'll sleep better at night. The only good debt is when you borrow for a solid investment that you can resell if needed (e.g. investment properly)

    I won't. That's a prepper fantasy.
    Stop watching financial doomsday videos.
     
  7. SilverDJ

    SilverDJ Well-Known Member

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    This isn't bad advice either. Although if you have have someone to back you up in those circumstances (parents!:D ), then cash backup is less of an issue at your age.
    Debt = bad
    Cash stashed away for a rainy day = good

    So less debt, more cash, hoard the stuff, you'll never regret it. Having money buys you freedom.
    With it being only $4K, it's kinda of a moot point either way, the interest is chump change either way. Paying it off now gives you the warm fuzzies and you'll know exactly where you stand, that's basically it.
     
  8. errol43

    errol43 New Member Silver Stacker

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    My plan would be.

    Split your savings into 2...Pay back $2500 of your loan, leaving $1500 owing.

    This would leave you with $2500 in hand.

    Keep $2000 in bank at 3 to 4%..Use interest to keep your student loan debt at the same level..

    Spend $500 on silver (20ozs silver)

    When you start work pay(if possible $10 per week off your loan and $10 a week on silver)

    IMO the sooner you start dealing in the real financial world the better.

    Risk vs gain is the name of the game.

    There has been some good advice given in other posts.. Pick the one that suits you best and go for it son.

    Regards Errol 43
     
  9. SilverKendo

    SilverKendo New Member

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    A friend of mine is learning a very valuable lesson right now, good credit is often times better than cash. He comes from a very wealthy family and he lives off of a trust fund. He always has a lot of cash and always pays for everything in cash. He's never had a credit card or even a debit card. While his cash provides him enough to live off of without working (and will continue to do so for the rest of his life and maybe even his son's life) it comes out as cash sums when he needs it. He has no credit. Now he is in the market to purchase a house and no one will give him a decent loan. He can make a 20% down payment and make the monthly mortgage payments but since he has no credit at all, the lenders are sticking it to him on the interest rate. He just got approved for his first credit card (he's in his early 30's) and made his first online purchase (it is 2015!?!). So his options are don't get the house he wants, get raked over the coals with an outrageous interest rate or go into title with his girlfriend/baby's mama who has a good stable job and excellent credit. He told me the other day how he regrets never establishing good credit when he was young. He always thought cash would be good enough and it isn't.

    So what does this have to do with the OP? I'd say pay off your loan with regular monthly payments + a few % extra on top. This will pay down your loan, establish regular payments/credit worthiness and you won't have to spend all the money you have in one blow. Add to your silver and gold stack as you go. You'll be setting yourself up as a young man to have good solid credit when you need to buy a car or a house, it will teach you monetary responsibility (sounds like you are way ahead of most guys your age) and it leaves you with some cash in hand for silver and dates with the ladys.

    If you really believe in a huge financial crisis then who cares about loans and such? Just default on them since it won't matter as we'll all be paying for canned beans, clean water and ammo with fractional silver coins as we try to run from zombies and mutants. As SilverDJ said, "That's a prepper fantasy." Sales of prepper supplies and literature is big money now. It sells a lifestyle based on fear. A lot of the stuff in the magazines are a pretty good idea; extra food and water in case of a snow storm or power outage, medical supplies and the knowledge to use them, transportation, etc. Unless you live in a very unstable or war torn country (some places in Africa, South America, Eastern Europe, etc.) I wouldn't bet the farm on seeing hyperinflation or mobs of murders trying to steal your stack. I'd pay down your debt, build credit and build stack.

    I will also agree with everyone about getting silver shot. I don't think anyone would trust it. what is the purity? did someone mix some stainless steel or lead in with the silver? I would want at least a round or bar with weight and purity stamped on it and unless it was a large bar ,personally, I'd rather have minted coins.
     

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