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5 Expenses That Will Improve Your Retirement

By WTOP Staff

Improving finances is among the top concerns for most people trying to reach a comfortable retirement. But money alone won’t provide you with a successful retirement. There are many facets of living a fulfilled and content retirement, and money is just one component.

Having a singular focus on building wealth can get you into trouble in retirement. Even if you amass millions, it’s important to take a more balanced approach to preparing for retirement. Spending on these things will lead to a better retirement, and are worth having a little less money in the bank.

Health should never be neglected to make a few more bucks. You can literally lose your life working in the American culture. Hectic and stressful hours and a long commute followed by generous portions of comfort food to tame the emotional stress of it all can slowly erode your productivity and health. It’s important not to work so long and hard that you damage your health in the process and don’t even make it to retirement. Taking steps to maintain your health is essential for a happy retirement.

Relationships are critical, even if they drain resources. Being well connected often helps you succeed in the corporate world, but we all know deep down that a few meaningful relationships with loved ones beats knowing everybody. But developing deep relationships with other people takes lots of time. This will take time away from wealth-building activities. Putting your family first sounds obvious, but how many people really prioritize their relationships when a must-do project comes up at work? Being there for one another can also mean spending a bit of money to help out and hang out. Be careful here, because you don’t want to become the bank of everyone you know, but don’t be so stingy that you start ignoring your family and friends.

Wasteful spending can be worth it. I always err on the side of saving more because the vast majority of people can’t control their spending. But saving too much can be a problem too. As a natural saver, I know the anxiety writing a big check can cause. I try to remind myself that the future me is just as important as the present me, so saving and spending today are both important. If your retirement savings plan is on track, then spending every once in a while is OK.

Making an effort to help the poor will transform you. Volunteering your time or giving money to charity can become a low priority for those who are determined to increase their wealth. But giving can bring perspective, joy and a purpose to your life. Those who give frequently benefit just as much as the people who are on the receiving end. If you have never donated anything in your life, then I urge you to give it a shot.

Remember to take some calculated risks. Many people are hesitant to embrace the unknown, even if their instincts tell them it’s the right path to follow. Think through each opportunity that comes your way, and make sure you won’t be devastated financially if the outcome goes against you. But do take chances. It’s important to take a few risks in life, because not doing so is a surefire way to have regrets later. Even if you fail, the experience is bound to be full of teachable moments. And if you can learn from the mistakes, then success is well within reach.

David Ning is the founder of MoneyNing.com.

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5 Expenses That Will Improve Your Retirement originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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