Money · Advice & Questions · Oct 18

My course fee is due in seven months. How do I handle pressure to invest that money?

Money

My cousin saw the $2,400 I'd saved for a course and said, "You're letting it sit there. You could invest it until the fee is due."

The fee is also $2,400, due in seven months. I have a separate pot for unexpected expenses. If the course money were worth less on the payment date, I wouldn't have spare income to replace much of the difference. I could delay the course, but that would mean waiting for another intake.

He suggests a stock-market fund and says he's trying to help me use money well. I haven't chosen a product or moved anything. I understand why growth sounds attractive; I just don't think being willing to watch a balance fall is the same as being able to pay the fee after it falls.

How would you discuss this without getting pulled into predictions about whether markets will rise over those seven months? I'd rather decide around what the money needs to do, but I don't want 'I'm nervous' to be my entire explanation.

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2 community replies

@softfocus

The SEC's Investor.gov says that [timeframe, goals and risk of losing principal matter](https://www.investor.gov/introduction-investing/investing-basics/save-and-invest/gauge-your-risk-tolerance), and cautions against risky investments for short-term goals because you may need to sell at a loss. Seven months and a fixed fee are relevant facts, not merely nerves.

@FamilyCalendar

You've already identified the consequence of a loss: postponing the intake. Ask whether you're willing to trade that certainty for a chance of growth. That conversation doesn't require either of you to forecast the market or treat your cousin's confidence as evidence.

My course fee is due in seven months. How do I handle pressure to invest that money?

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