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What should I spend my loans on?

Ok, so before you judge me, I'm not the sort of person that's so allergic to cash that they have to spend it as soon as they get it. I tend to just leave my money in the bank and only use it when I need it. I also spend time trying to save money whenever I can.

So this is what I need advice on. My family are going Florida in 2013 and I can go if I want. But I have to pay for it myself, about £1300. Also, I want a gaming rig (build my own pc) which could cost £700-£900.

Now, my only income is student loans and the occasional few quid for baby sitting my nephew.

So far I have about £3k saved up, I've already paid for my rent and put away money for travelling to Uni until I next get maintenance loan/grant (September).
My living arrangements will be exactly the same next year.

I don't really go out much, especially drinking. I hate the day after and I don't like not being in control of myself.

So what do you think, should I go on holiday, buy a computer or just keep it saved up.

It's not like I need either of them, only want them. I could do none and be quite happy and have cash for the future or even pay back what I can after Uni so I don't have to pay as much interest or pay back the loans for as long.

Btw, I'm in first year at Uni, doing a placement during the 3rd year (which I think is paid, I hope anyway) so I don't think I have enough experience yet which is why I would like your advice!

EDIT: before starting Uni I had around £300 from EMA, and my only income has been loans/grants/bursaries and about £200 from babysitting. I am due another £500 bursary in May, I'm still going to be living at home (paying my mum £30 a week) next year. I got £6500 this year and again next year (£3000 grant, £2500 loaned, £1000 bursary)

TL;DR: Should I go on holiday or buy a pc with my loaned money or should I save it?

(edited 12 years ago)

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Reply 1

alexlduffy

It might just be me, but the gaming PC sounds like a terrible idea, especially for a student.

The holiday is a better bet. I imagine a lot of your money would stay in the bank account, so I think you could go to Florida with your family, and they might appreciate you coming with them. :smile:

Reply 2

Conchiron

Original post by alexlduffy

Yeah you're probably right, I have a laptop that can handle BF3 on Med easily anyway.

If you were in my position, would you spend the cash on the holiday or save it?

Reply 3

ily_em

Go on holiday! It's a lot but I would. It looks like you'll be able to save a lot next year too so you'll make the money back.

Reply 4

smileybop

Save! put it in a high interest account? I have no idea how these things work ...

Reply 5

swaggiee

buy Apple shares, or you could just spend it on books

Reply 6

Clickers

do both, i went on holidays and bought a gamaing pc. if you have the money spend it. if you dont the price will rise.

Reply 7

alexlduffy

Original post by Conchiron

Yeah you're probably right, I have a laptop that can handle BF3 on Med easily anyway.

If you were in my position, would you spend the cash on the holiday or save it?

Difficult question. You have to think about stuff like "Do I really want to go?" "What will I be doing there?" "How much money will I need when I'm there?" and "Do I need a holiday?". Personally, if I hadn't been on holiday in ages and really felt like I'd enjoy myself, I'd go. If not, you could save it for something else. Either way, try and enjoy yourself! :smile:

Reply 8

Conchiron

Original post by alexlduffy

It'd be fun, ofc, it's Disney World :biggrin:

Although I went 7 months ago lol, so I've done most of it

I reckon £250 spending money is more than enough. I took $1000 last time and brought $650 back...

We're not booking until June so I have enough time to think about it.

Thank you so much for your advice, it really has helped.

And thanks everyone too, all your advice has really helped me!

Prostitutes.

I'd be trying to make sure I came out of uni with enough money to pay my first month's bills and rent after uni and to buy work clothes. Beyond that, savings are pointless if you never spend them. But yeah, otherwise high interest ISA, fixed term if you can afford to put the money away and not use it.

Edit: Or you could keep saving it and come out with some money for a deposit on a house...

(edited 12 years ago)

Reply 11

alexlduffy

Original post by Conchiron

It'd be fun, ofc, it's Disney World :biggrin:

No problem! And jealous that you're going to Disney World! Went to Disneyland Paris a few years ago and it was the best holiday ever.

Reply 12

Dbx125

Depends OP. I wouldnt spend that kind of money on Florida (and ive been twice in my life, although I was 14 and 15 so my parents paid for it. Brilliant place BTW) unless it was a month's holiday in a villa. Dont think Florida is worth it for 2 weeks in a hotel. You cant see everything there is to see and taking into account flight length and drive and packing its more like 1 week and 5 days for £1300. Its a lot of money to spend when you're a student.

Gaming PC, I have one too. Might be a better investment. Just because its a gaming PC it is also a desktop which is always incredibly useful.

Reply 13

Pawsies

give some to me :colone:

Reply 14

chiddy09

Original post by Conchiron

Escort mate, sorted.

Reply 15

Fuzzpig

One question: are you planning to do a masters degree after your undergrad? If so you'll SERIOUSLY hate yourself for having spent all of that money.

Reply 16

Hanvyj

I'd normally say save it up for a deposit on a house lol. I have to say though, having got older - money does not last long. I can't even pay the rent this month, even though both me and my wife have full time employment - all because we had to move for work and this destroyed our finances.

However, you never get much time for the kinds of experiences you can have when you are younger - I say go on holiday, or save it for some traveling later.

Reply 17

ThePants999

Half-Life 2 came out in my third year. That term's loan went on PC upgrades! :smile:

Personally I'd build the PC - it's a tangible asset, something you'll have permanently.

Two different perspectives for you:
1. Loans need to be paid back. You should ask yourself - if I didn't have this money, would I go and apply for a loan specifically to spend it on X? If not, that's not really any different from spending money you've already borrowed, which would suggest you shouldn't spend loan money on X.
2. The student loan is pretty easy on the pocket. 9% of income over £15/16K - you don't really feel that, either you don't earn much in which case they don't take much, or you earn plenty in which case you don't care. So, might as well make uni as fun as possible with it.

But make sure you take into account plans for after uni. Figure out how much money you'll need and make sure you have it.

Reply 18

wateva

buy loads of porn and just jizz everywhere

Reply 19

LovePeaceAwesome

I think you should go on the holiday, but also try to save money for uni/to make back the money you'll spend on the hol.
And don't go with the comp idea. :biggrin: