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4 Ways to Turn Your Anxiety Into Action

By U.S. News & World Report

Change is a constant, and the past few months have witnessed some dramatic surprises. Despite all the shock and awe, the financial markets have found their way to new highs, and certain industry groups that had been laggards over the past few years have now emerged as leaders.

A few weeks into our new administration, it’s clear that there is a lot more change to come, and while policies have not been fully clarified, the trajectory has. For some, change is exciting and even invigorating. For others, it evokes worry, confusion and even sometimes fear.

[See: 8 Ways President Donald Trump Will Affect Wall Street.]

Here are four simple ways you can turn anxiety into constructive action with your investments.

Have or develop a plan. Don’t overreact to headlines and the daily gyrations of the stock market. Rather, chart out a thoughtful financial plan with a clearly defined destination. Knowing where you’re trying to get to is critical and will help to identify what, if any, changes or adjustments should be made at this time. Don’t make course corrections until you get your compass bearing.

Take the time to rebalance. Sector rotation and the post-election rally may be a rebalancing opportunity. The financial markets are fluid and recent moves have been dramatic in certain sectors. Review your investments and see if there are opportunities for you to make wise adjustments. Are you underweight areas that your plan should be emphasizing? Are you overweight sectors that exceeded expectations?

[See: 10 Long-Term Investing Strategies That Work.]

Use the market moves to improve your portfolio and keep you on track toward your long-term goals. Much the same way a pilot must make periodic course adjustments due to weather, traffic, winds, etc., an investment pilot should rebalance occasionally to ensure his/her portfolio isn’t veering off course.

Sometimes no action is the best action to take. Nervous energy can often lead to impulsive and frequent actions or changes, many of which don’t actually get you closer to your financial goals. If you are not careful, impulsive decisions could potentially move you further away from your goals and thus be costly.

Let your financial plan be the guide to any changes you make. Don’t be a financial “lane changer” believing that frequent adjustments will necessarily help you get to where you are going. Money can be like a bar of soap — the more you touch it, the smaller it gets.

Take five. One discipline many investors have employed successfully is the “take five” principle. Simply put, they wait at least five days before acting on an idea, thought or impulse they have. This pause often serves to reduce emotions to a more reasoned level as well as providing additional time for reflection.

[See: 13 Ways to Take the Emotions Out of Investing.]

Buying or selling an investment on the same day that a major headline breaks can often be the least opportune moment as the price moves can be extreme. The “take five” approach allows time for some of the noise to soften and price overreactions to stabilize. Most importantly, taking five gives an investor time to reflect upon his/her plan and destination, not just the bumps in the road.

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4 Ways to Turn Your Anxiety Into Action 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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