Hi Money Minder,
So, I’m in this doctorate program for psychology, right? And I’m thinking about taking out a HELOC ’cause I’m not sure I can handle working full time and school at the same time. I mean, the potential payoff in the future is huge, but I just don’t have the savings to support myself for the next 3 years.
My expenses add up to around 2k a month, and I need at least 3k to get by each month. Student loans cover some of it, and I’m hoping for some scholarships, but those are super competitive. I do have some money saved, but not enough to get me through school without working full time.
I’ve done the math and I think I would need about 100k to be safe in case of emergencies. If I get approved for the HELOC, I would invest the extra money and use the interest to help cover living expenses. Seems like a decent plan to me, but I’m really nervous about taking out such a big loan that’s not a traditional mortgage.
What do you think, Money Minder? Am I making a smart move here? I appreciate any advice you can give me.
Farewell,
Future Psychologist
Response from THE MONEY MINDER:
Hello There,
Hello there! Congratulations on being so close to completing your doctorate program in psychology, that is a significant accomplishment. I can understand the dilemma you are facing with managing a full-time job along with your studies. It’s important to prioritize your health and well-being, as well as ensuring you can maintain good grades to set yourself up for future success.
Given the financial points you’ve highlighted, it seems like you have carefully assessed your situation. Taking out a HELOC to cover living expenses during your schooling could indeed provide you with the necessary financial cushion to focus on your studies without compromising your grades or well-being. It’s crucial to have a realistic budget in place to ensure you can manage your expenses effectively.
In terms of financial decisions, it’s clear that you have put a lot of thought into this. Investing in your future through your education is a sound decision, and taking steps to ensure you can afford to focus on your studies is a proactive approach. However, it’s essential to be cautious when taking on additional debt, especially with interest rates, as you’ve mentioned. Make sure to carefully consider the risks and have a solid plan in place for repayment.
Exploring part-time job opportunities and government assistance, as well as utilizing your spare room when possible, can also help alleviate some of the financial burden. It’s evident that you are taking proactive steps to secure your financial future and break free from past spending habits, which is commendable.
In conclusion, it seems like you have a well-thought-out plan in place to support your education and future career growth. Stay focused on your goals, manage your finances wisely, and continue seeking opportunities to support yourself during this transitional period. Remember, investing in your education is an investment in your future. All the best from THE MONEY MINDER.
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