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How to Use Deliberate Experimentation to Improve Your Finances

By U.S. News & World Report

When most people think of scientists like Isaac Newton, inventors like Thomas Edison, statesmen like Benjamin Franklin or entrepreneurs like Jeff Bezos, they tend to think of people who rode a rocket ship to success. While each one of these individuals achieved many successes in their lives, the most important attribute they had in common is that they failed, over and over again.

However, it’s not just that they failed, but how they failed. They repeatedly tried experiments in their lives and their work to see what would succeed and what wouldn’t. They came up with an idea, tested it to see if it actually worked, then quickly moved on to the next experiment, retaining the things that worked and tossing the ones that did not.

This process is called deliberate experimentation, and it’s not just something for hyper-successful self-starters. It’s something you can apply successfully in your own life and in your financial choices.

By simply conducting little experiments in your life to see what works and what doesn’t, you can quickly adopt a more successful pattern of money use in your life and get more value out of every dollar you earn. Here are some deliberate experiments you can try.

[See: 12 Ways to Be a More Mindful Spender.]

Whenever you buy a household product or food staple, buy the store-brand version. Try out that store-brand version instead of the one you always buy. If you don’t notice a difference in quality, you now know that you can always buy that product. If it’s not up to your standards, then you’re only out a dollar or two, and you can buy the name-brand version next time.

Try different methods of making your own coffee at home or at work. Cold-brewing your own coffee is amazingly simple, as it just requires a cloth tea bag, some cold water and a pitcher left in the refrigerator overnight. See if that is easy enough and high-quality enough for you. Try adding different flavors to your coffee to see what you really enjoy and stick with that recipe. It’s almost always going to be faster and less expensive than a morning coffee stop.

[See: 6 Ways to Treat Yourself on a Budget.]

Try going without cable for a month. See what happens if you disconnect your cable box for 30 days. Can you do it? Do you easily discover new sources of entertainment? If you find that it’s hard, and you end up plugging it back in, then you know cable is a good value. If you find you don’t miss it, then you can cancel your cable and revel in the savings.

The next time you make a batch of soup, triple the recipe and freeze the extras. Take your favorite soup recipe and triple it, and just before you’re about to eat it, put the extra soup into several containers (freezer Ziploc bags work well). Over the next month or two, use the frozen soups for dinner, and after the last one is used, assess whether you saved time and money doing this.

Try using public transportation for your commute. Use public transportation for a solid week or month and observe whether you’re saving money, time and fuel.

[See: 10 Fun, Frugal Ways to Spend Your Free Time.]

Try not washing certain clothing items. Instead of immediately washing your jeans or other outerwear, visually inspect them and just hang up any items that appear fully clean. See whether wearing the clothes again between washes works for you. If it does, not only are you saving money on laundry, but you’re also extending the life of the apparel, as laundering adds wear and tear to clothing items.

On a day when the temperature is between 50 degrees Fahrenheit and 85 degrees Fahrenheit, open your windows instead of using climate control. See whether your home stays at a pleasant temperature. If it does, then you have a new tactic for saving on heating and cooling costs.

The goal of these deliberate experiments is to try something new in your own life and see whether it works for you. Does it achieve financial gain with no real lifestyle cost? Or do you find that this particular experiment ends up causing a net loss in your life? Try something new, evaluate fairly whether it works or not, discard it if it fails and keep it if it succeeds.

Over time, deliberate experiments in all areas of your life will result in a better personal, professional and financial you.

More from U.S. News

11 Expenses Destroying Your Budget

8 Big Budgeting Blunders — and How to Fix Them

12 Shopping Tricks to Keep You Under Budget

How to Use Deliberate Experimentation to Improve Your Finances 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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