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4 Ways to Fund Your Dream Second-Act Career

By U.S. News & World Report

When I speak to people about their second-acts, I often get asked this question, “I’d love to make a switch to my dream semi-retirement job, but I can’t afford it. What should I do?” I understand their concern. After all, it’s easy to say, “Follow your passion” or “Now is the time to realize your dreams.” But when you have bills to pay and little in savings, your financial reality and second-act plans may not line-up. Training is expensive, new businesses require start-up capital and salaries for people pivoting to something new are far less than those of experienced workers.

[See: 10 Ways to Make Extra Money in Retirement.]

Luckily, there are steps you can take to shore up your finances, no matter how challenging your current reality. Here are four to consider:

1. Maximize your employee benefits. While you’re still at your current job, make sure to take full advantage of your employer benefits, because doing so can save you thousands. Even if you already participate in health insurance coverage, you might not be using some of the less popular benefits, such as employee discounts, flexible spending accounts or the company match on your charitable donations.

If you’re hoping to retrain for a second-act career, be sure to take advantage of any opportunities for personal or professional growth. Inquire about tuition reimbursement benefits. And if your employer doesn’t offer tuition reimbursement, they might sponsor other training-related opportunities, such as webinars or reimbursement for industry-related conferences and events. These training experiences can help you master new skills and improve your marketability.

2. Take advantage of free and low-cost training options. Whether you’re thinking about starting a business or looking to hone your skills for a job shift, chances are you’re going to have to invest in some level of training. Fortunately, the options for adult learning have never been more plentiful or affordable. From cooking to coding, there are thousands of online classes you can take at incredibly affordable prices (and sometimes for free) using MOOC’s, massive open online courses, offered by some of the world’s top universities and organizations. And if you prefer to learn in a traditional classroom, there are plenty of affordable options at community colleges and adult continuing education programs.

[See: The Best Cities for Retirement Jobs.]

3. Spend less and save more. Yes, you’ve heard this one before, and it’s easier said than done. But we all have room to cut somewhere. For example, going from a two-car family to a one-car family can result in considerable savings, and might be feasible now that the kids have flown the coop. And speaking of being an empty-nester, do you still really need to subsidize a kid’s cell phone bill or car insurance payments? Making the time to review your savings and budgets can sometimes reveal hundreds or thousands of dollars in needless expenses.

Use technology to help streamline the process. Apps like Mint.com make it easier to track your finances. SavingStar.com helps you find great money-saving deals. And a site like ZenHabits.net has advice on simplifying your life, so you’ll have more time to enjoy the things that matter.

4. Leverage your housing. For most people, a home is their single biggest expense. If you’re looking to reduce your housing costs, here are a few ways you might be able to slash expenses:

— Downsize. Moving to a more modest home means less space to manage, fewer upkeep costs and perhaps lower property taxes. The money you save can go straight into savings or be invested into your second-act shift.

— Rent out a room. If you prefer to stay put in your house, you might want to take on a boarder. (Just be sure to check out the rental laws in your area first.) You can source renters through word of mouth or use a sharing service like GoldenGirlsNetwork.com, a site that helps match renters over age 40 with suitable rentals. Another alternative is to offer a short-term rental through a company like Airbnb.

— Board animals. If you’re an animal lover who lives on a large property, you might be able to offer boarding services for dogs or even horses. Here again, be sure to check zoning laws before accepting clients.

— Work as a property caretaker. Sell your home and live rent-free in exchange for providing property caretaking services. This can be a great way to reduce retirement costs and eliminate almost all your out-of-pocket housing costs. For example, we recently stayed at a chateau in France that is being looked after by a semi-retired couple from Las Vegas. In exchange for taking care of the property and hosting occasional guests, the couple gets to live at the chateau year-round rent-free.

[See: 10 Jobs Hiring Older Workers.]

Making adjustments to your budget and lifestyle is rarely a painless process. But by doing so, you’ll be far better prepared to enjoy a second-act career that allows you to work when, where and how you want.

Nancy Collamer is the author of “Second-Act Careers: 50+ Ways to Profit From Your Passions During Semi-Retirement” and blogs at mylifestylecareer.com.

More from U.S. News

10 Alternatives to Full-Time Retirement

10 Financial Perks of Getting Older

How to Save for Retirement on Less Than $40,000 Per Year

4 Ways to Fund Your Dream Second-Act Career 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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