Which comes first? School fees or investing

Q: I recently moved to the US from the Caribbean. I have $5,000 and I’m trying to obtain a second degree. I know this money can’t pay for my school fees, but it could pay a part. Or I could get a regular job and invest the $5,000. Please advise.

A: My advice to you would be to get a job and search for financial aid and scholarships to pay for school. Even if you have to take out loans for school, it will be worth the investment in the future. As you’ve pointed out, the $5,000 you have will not pay for the total cost of your education —  in fact, it will barely pay for the cost of one semester of advanced degree classes at most colleges and universities. If you get a job now, you can take that $5,000 and begin building toward a future goal — the down payment on a home, for instance.

I would advise using $3,000 of your money to open up a Roth IRA (the limit for contributions in 2005 is $4,000). This will allow you to begin saving for your retirement and also give you the flexibility to use the money as a down payment for a home in five years without incurring the 10 percent early withdrawals penalty. Your remaining $2,000 could be placed in a money market account, a high-interest savings account, or a six-month CD. While you’ll only earn between 2 percent and 2.5  percent interest, you’ll have some money available to you in case of an emergency.

Q: Please tell me where and what software I can buy to establish a database?

A: Once you decide on what kind of information you want to manage, there are enough user-friendly database programmes to choose from. Here are a few suggestions to get you started: First, you should understand the two basic types of databases: flat-file and relational. A flat-file database is a single file that contains a complete database table. A relational database manager allows records to be connected to data in other databases. Look at the advantages of these three popular databases to help you make your final decision: FileMaker Pro 7 is one of the easiest and most versatile relational database management software packages because of its ability to import and organise all types of information. This programme features simple database design, customised reports, and one-click Web publishing.

Microsoft Access is the powerhouse among database management software. It provides full relational capability, excellent dat analysis features, and a wide variety of programming tools. MyDatabase is a simple, elementary programme that’s perfect for individuals who are put off by more complex databases. You can buy database programmes at retail outlets, and you’ll find the biggest selection online. Go to http://shopper.cnet.com where you’ll find product reviews and price comparisons.