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3 Steps to Get Your Financial Life on Track

By U.S. News & World Report

As most everyone understands in theory, it is smart to be prepared for anything in life — whether it occurs personally, financially or professionally. The unexpected happens to people just like you and me every day.

But for many, good financial preparation, including establishing and maintaining solid financial habits or retirement readiness, is not as easy as it sounds.

According to the Voya Retire Ready Index, only 17 percent of workers have a formal written financial plan, while nearly half (48 percent) have less than $49,000 in retirement savings. The study, which focuses on the retirement readiness of workers and retirees, found that 27 percent of retirees and 59 percent of workers were extremely or very concerned about outliving their savings.

Given these concerning statistics, how should you become financially prepared? Here are three tips that can help get your planning and saving on track.

Establish (and write down) your financial goals. Planning involves setting short- and long-term goals. It also involves investigating different ways to reach those goals. You need to explore and be open to different options when planning to have the best outcome.

Ask yourself: What are my financial goals? Do you want to make a big purchase in the near future, such as an engagement ring, house or a child’s braces? For those closer to retirement, you may be thinking about a goal of retiring by age 65 with a certain amount of money saved.

Most of us are on a quest to become financially independent, but many lack the planning know-how to get there. Writing down your goals is a great first step.

Prepare a budget. The best way to establish a budget is, quite simply, to start keeping track of your money. Track your income, expenses and savings for two to three months, and then analyze the numbers to see how you are doing. While a budget may be easy to establish in theory, it can be difficult in practice because execution requires dedication and can involve cutting back on spending.

There are plenty of tools that can help you, such as online home budget calculators. Find resources that work for you so you can accurately track where your money is going and determine where you can save more.

Don’t forget to aim to align your spending and saving with your long-term and short-term financial goals.

Understand your emotions and money. The path to financial preparedness is not easy, and there are many unexpected turns. Since you’ll experience ups and downs, it helps to better understand how you react to money issues.

Money is such an important part of our lives because it affects our relationships, career choices, education, family, retirement, charitable giving and much more. A lack of money can place us in vulnerable situations, which can lead to emotional, knee-jerk actions and make the situation worse.

It’s important to know what it takes to rattle our own emotional cage. It could be a sudden drop in the stock market, a large, unexpected bill, conflicting financial priorities or something else. Once you identify your emotional trigger spots, you can create a plan to steer yourself away from making bad decisions in crunch times.

Despite the financial world becoming more complicated, the way to financial independence still remains pretty straightforward and simple. Save, plan and get professional help when you need it.

Above all, to achieve your financial goals, choose the right path for you and stick to it. Being financially prepared does not happen overnight. It’s a journey with many opportunities to revisit, adjust and then march forward to financial security.

Jacob Gold is a Voya Retirement Coach, a third-generation financial advisor and President of Jacob Gold & Associates Inc. He is the author of the upcoming book, “Money Mindset: Formulating a Wealth Strategy for the 21st Century” and “Financial Intelligence: Getting Back to Basics after an Economic Meltdown,” which was published in August 2009. Gold is a certified financial planner practitioner and is Series 7, 24 and 66 securities registered.

Securities and Investment advisory services offered through Voya Financial Advisors Inc. (member SIPC).

Jacob Gold & Associates Inc. is not a subsidiary of nor controlled by Voya Financial Advisors.

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3 Steps to Get Your Financial Life on Track 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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