Paying Back a Student Loan of $62 000

I am lucky to have my mum who is able to provide for my education and not needing me to borrow from the bank for my education. When I first entered university, I realised that many of my peers had an education loan where they would need to start paying back a small amount each month followed by a larger sum when they graduate. Recently, I came across this video about student loans in the United States.




Seeing how the woman has to pay back her debt with a crazy high interest rate is sad because what she pays back as seen in the video is actually mostly just the interest rate and late fees that have been incurred meaning that only a small proportion goes to paying back the principal.



In the video, she mentions about entering college and seeing everyone sign up for student loans and she thought that was the way for every student so she did just that. However, after she graduated in 2009 which was the financial crisis. she received a call about the loan that she had taken. The amount was astronomical and she had to pay it back.




Of course, she would definitely need to pay it back but in the video she mentioned about not having any knowledge about loans and no one was there to explain to her about loans. I think at that time because her family was unable to support her for her education hence she just went ahead with taking the student loans without thinking much. I find this really depressing because it is tough having debts where you know you cannot have as much freedom to spend due to this load on yourself. I think in life, a choice made can change the direction of your life and many of the comments wrote that because her degree was a drama and communications hence she was not able to get a good job to pay off her debts.

I do feel affected because the degree that I am taking is not reputable in terms of it's course and school but I am a little glad that I do not have any loans to pay back unlike some of my peers. With that, I can only make myself work harder and hopefully smarter to secure a better job when I graduate this year.




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My Financial Goals - Is $100 000 in 7 years possible?

I have been delaying this post for awhile and it is a rather important post to be honest.  Just as this quote, "Begin with the end in mind. - Stephen Covey", goals are the first steps to every journey we take and are also our last. It is important to set goals and work towards it in your life.

I have listed out a rough guide for myself of the amount to save and how much I hope to save at the end of that year, I did not include investment gains or bonuses for now. Right now, I am currently 23 years old with about $8000 invested in the stock market, $2000 in Singapore Savings Bond and about $3000 in my bank accounts. Of course, the value right now would fluctuate due to income from part-time tutoring, deductions from my savings plans and daily necessities.




Read more: Savings plan - Yes or No

Current Situation:

• Total asset at $12 000

Read more: Total Current Assets - Breaking $10 000

Here is my rough plan, after listing it all out, I have realized that to reach $100 000 in 7 years time will really not be so easy. Total includes current asset of $12 000.

In 7 years time, where I would be 30 years old (It will be a great gift as I enter my thirties, if I am able to achieve it), I hope to:

• Reach $100 000 in total assets (cash savings and stock holdings)

Of course, the goals I have set for myself could be easily attainable by some or might seem ridiculous to others but I think it serves as a guideline for me to work about it every month. I haven't started work yet as my semester ends on October. I am currently in the process of trying to clinch one and once I do, an estimation of how I can achieve the $100 000 and how long it will take me would be much clearer.

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