Origins from Iceland, 20m. I am new to investing and barely know anything about it.

I am going to college in the United States and will take a student loan from an Icelandic loan institution, and I will have to pay 70% of the loan back, 2 years after I get a job and it will be a small percentage of my paycheck. I am a student-athlete so I will have to pay about $8.000 a year, and am currently receiving $6.5k after each quarter from the loan institution, and each quarter is 10 weeks. 

in conclusion, after I complete my freshman year I will have around $10k, after sophomore year I will have $20k and so on.

I'm wondering if it is worth it to invest this money, or just save it. I will not be using the rest of the money until I turn 25-26. Does anyone have any tips on how I should invest this money in this type of situation?

thanks for the read!
Hello, and congratulations on your decision to pursue higher education in the United States! It's a very exciting journey that you're embarking on.

Given your situation, it seems like you are in a position to invest some of your money. However, there are a few things you should consider first:

1. Emergency Fund: Before you start investing, it's important to have an emergency fund that can cover at least 3-6 months' worth of living expenses. This fund acts as a safety net for unexpected expenses or events such as medical emergencies, car repairs, or sudden loss of income.

2. Loans and Interest Rates: You mentioned that you have a student loan from an Icelandic institution. Understand the interest rate on this loan. If it's high, it might be more beneficial to pay off this loan faster rather than investing your money.

If you've taken care of these points, then investing could be a good idea. Here are a few tips:

1. Diversify: Don't put all your eggs in one basket. Diversify your investments across different asset classes (like stocks, bonds, real estate etc.) and industries.

2. Low-Cost Index Funds: As a beginner, investing in low-cost index funds can be a good strategy. These funds track the performance of a specific index like the S&P 500. They are generally a safer bet than individual stocks and require less knowledge about investing.

3. Time Horizon: Since you're young, you can afford to take on more risk because you have a longer time horizon. You can invest in assets with higher potential returns (but also higher risk) like equities.

4. Regular Investing: Consider a strategy called dollar-cost averaging, where you invest a fixed amount of money at regular intervals. This reduces the risk of investing a large amount in a single investment at the wrong time.

5. Get Professional Advice: Since you're new to investing, getting advice from a certified financial planner or advisor can be helpful. They can provide more personalized advice based on your financial situation and goals.

Remember, investing always comes with risks and it's important to do your own research or seek professional advice. Good luck with your financial journey!
### Human
Origins from Iceland, 20m. I am new to investing and barely know anything about it.

I am going to college in the United States and will take a student loan from an Icelandic loan institution, and I will have to pay 70% of the loan back, 2 years after I get a job and it will be a small percentage of my paycheck. I am a student-athlete so I will have to pay about $8.000 a year, and am currently receiving $6.5k after each quarter from the loan institution, and each quarter is 10 weeks. 

in conclusion, after I complete my freshman year I will have around $10k, after sophomore year I will have $20k and so on.

I'm wondering if it is worth it to invest this money, or just save it. I will not be using the rest of the money until I turn 25-26. Does anyone have any tips on how I should invest this money in this type of situation?

thanks for the read!

### Assistant
Hello, and congratulations on your decision to pursue higher education in the United States! It's a very exciting journey that you're embarking on.

Given your situation, it seems like you are in a position to invest some of your money. However, there are a few things you should consider first:

1. Emergency Fund: Before you start investing, it's important to have an emergency fund that can cover at least 3-6 months' worth of living expenses. This fund acts as a safety net for unexpected expenses or events such as medical emergencies, car repairs, or sudden loss of income.

2. Loans and Interest Rates: You mentioned that you have a student loan from an Icelandic institution. Understand the interest rate on this loan. If it's high, it might be more beneficial to pay off this loan faster rather than investing your money.

If you've taken care of these points, then investing could be a good idea. Here are a few tips:

1. Diversify: Don't put all your eggs in one basket. Diversify your investments across different asset classes (like stocks, bonds, real estate etc.) and industries.

2. Low-Cost Index Funds: As a beginner, investing in low-cost index funds can be a good strategy. These funds track the performance of a specific index like the S&P 500. They are generally a safer bet than individual stocks and require less knowledge about investing.

3. Time Horizon: Since you're young, you can afford to take on more risk because you have a longer time horizon. You can invest in assets with higher potential returns (but also higher risk) like equities.

4. Regular Investing: Consider a strategy called dollar-cost averaging, where you invest a fixed amount of money at regular intervals. This reduces the risk of investing a large amount in a single investment at the wrong time.

5. Get Professional Advice: Since you're new to investing, getting advice from a certified financial planner or advisor can be helpful. They can provide more personalized advice based on your financial situation and goals.

Remember, investing always comes with risks and it's important to do your own research or seek professional advice. Good luck with your financial journey!<eos_token>