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In college? For now, invest in yourself

I’m 19 years old, and I’m putting myself through college debt-free. I usually work part time during the semesters, but right now I’m working full time. I have about $2,000 in mutual funds, and I was wondering if I should add my full-time work income to that or save it all to help pay for school.

    by Dave Ramsey, Syndicated columnist | Columnist, External
    Published 

Dear Dave,

I'm 19 years old, and I'm putting myself through college debt-free. I usually work part time during the semesters, but right now I'm working full time. I have about $2,000 in mutual funds, and I was wondering if I should add my full-time work income to that or save it all to help pay for school.

Chandler

Dear Chandler,

Wow! Great job, man! I appreciate that you're looking toward the future with your investment, but right now I want you to invest in you. I want you to make sure, first and foremost, that you graduate college debt-free. So, if I'm in your shoes, I'm piling up the cash to pay for school.

You're in a season of your life where things are more hectic than you probably ever dreamed they could be. My advice is to keep that money liquid. Keep it available and on hand, and don't tie it up in mutual funds at the moment. You'll have plenty of time to continue investing once you graduate.

It's best for you to concentrate on finishing school, then landing a job and finding a place to live after college. Even if you end up living in the same place for a while, starting life in the real world takes money, so let's make sure you can make that happen. In other words, Chandler, as long as you do something with your education and that education is in an area that's useable, you are a better investment than mutual funds right now!

-Dave

Dave Ramsey is America's trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover,EntreLeadership and Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.