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How to Afford to Quit Your Job

By U.S. News & World Report

When Tess Vigeland, the former host of public radio’s “Marketplace,” came home from work and cried in her backyard for three hours, she knew it was time to leave her job. “I decided I couldn’t take it anymore and I felt like I deserved better,” says Vigeland, who turned in her notice the following week.

With her recently published book, “Leap: Leaving a Job with No Plan B to Find the Career and Life You Really Want,” she is encouraging people to make similar moves. While doing so certainly involves some risk, Vigeland says it doesn’t mean being reckless. “I’m not saying, ‘Leave a job without bothering to think about the consequences,'” she says, adding that doing some financial planning in advance is important. Saving, trimming expenses and picking up freelance work are just a few of the ways to make leaving your job more manageable financially.

Indeed, Vigeland says that as the economy appears to recover, more and more people are looking to walk away from being an employee in order to pursue big dreams, self-employment, travel or other opportunities. If you are considering a similarly big change, Vigeland suggests you keep the following in mind:

1. Scrutinize your finances.

Vigeland recommends considering your current expenses and income, including from alternate sources, such as a partner’s salary or freelance work, to consider whether you can cover your basic living costs without your primary income. “I did some back-of-the-napkin calculations with my husband and we figured his salary could pay the mortgage with me not working at all,” she says. In addition, she planned to take on freelance work so her income would not go to zero. “I also knew I had a large retirement account that I could tap into if I had to, and home equity,” she adds.

2. Adjust your lifestyle.

After leaving her job in public radio, Vigeland’s income the following year was just one-third of what it had been previously, which meant she and her husband had to cut certain expenses from their budget. “We didn’t go out to dinner as much, we didn’t go on big vacation trips and we just did a lot of road trips around California, and that was fine,” she says.

3. Map out the worst-case scenario.

Imagining the worst can actually help calm your deepest fears, Vigeland says. Would you have to move in with your parents? Ask friends for financial help? “For many people, the worst-case scenario does not involve abject poverty. Figure out what your worst-case scenario is. Could you handle it?” The likelihood of facing it, however, is pretty unlikely, she says.

4. Redefine retirement.

Vigeland hasn’t contributed much to her retirement accounts since she left her full-time job, and she’s OK with that. “I stopped living for retirement. I don’t want to stop working at age 65. I’m 46 now, and I hope I’m working for the next 30 years,” she says. Instead of saving money for retirement and saving your adventures for old age, Vigeland suggests traveling and living on less now, when you can enjoy it even more.

5. Save up before quitting.

Vigeland wishes she had saved more money before leaving her job, and it’s something she encourages others to do now. “I felt pressure to be churning out dollars and getting a paycheck, and I think better savings, even three months, would have saved me from a lot of that,” she says. Instead of scrambling to pick up freelance assignment as soon as possible, she could have taken her time more.

While leaving a steady job does come with some financial risk, Vigeland says the benefit is that it offers the chance to dream big about your next steps. “It allows you to think about possibilities outside of what you would automatically assume. When you’re in a job, it’s hard to have the time to explore and think about what other options might be out there for you,” she says.

Vigeland’s own “leap” will soon lead her overseas, where she plans to travel in Southeast Asia, telling stories about people she meets. “I feel like I need to switch it up and use my skills in a different way … It’s all an adventure.”

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How to Afford to Quit Your Job 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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