Learn how you can fund your children’s (or your own) education so that you can enjoy life in a more bountiful manner…
In the current economy, educational costs continue to rise, and for those who fail to plan appropriately it comes as a total surprise. Therefore, when it comes to education planning, timing is critical, and it is very important that you put together a plan to meet or exceed your or your loved one’s educational costs as the rise in costs have continued to increase for several decades–and by all signals will continue to increase.
In this discussion TheWealthIncreaser.com will look at ways that you can ease your burden of funding educational costs that you may have in the coming years. It is important to get out in front of your future educational costs as inflation and other economic occurrences in particular, can make affordability difficult if not impossible without proper planning.
In the paragraphs below you will learn three steps that you can take to help lighten your educational costs in your future if you are now at a point where you desire to address your or your loved one’s future educational costs in a manner that is more favorable to your–and your households successful outcome.
1) Know your cash flow position now
When it comes to effective education planning, it is imperative that you take inventory of your current financial condition so that you can reach a starting point to determine which way you can or need to go–so that you can invest wisely and make your money grow.
You must know if you have discretionary income available on a monthly basis and at what amount!
Therefore, you must put together a formal outline of what you take in on a monthly basis and what you send out on a monthly basis so that you know what you have left over for educational planning investments and other goals that you may have.
2) Plan for the educational costs in as accurate a manner as possible
When planning for educational costs you want to plan in a way that you can avoid borrowing or using your current income while attending your or your child’s school of choice.
There are many educational funding vehicles that are available–and it is your responsibility to know what is available and how to best use those vehicles to drive toward your and/or your loved one’s educational costs in a manner that is the most favorable based on your cash flow position and future goals.
Whether you choose to use a 529 savings plan, pre-paid tuition plans, Coverdell savings plan, IRA savings plan or any other savings vehicle–-you want to ensure that when they are all totaled–the higher education costs that you have been saving for will be funded appropriately (100% funding is the goal) so that you can avoid borrowing altogether or borrow at a lower level.
3) Make improvements and adjustments as necessary
When the political, regulatory, economic social, technological and legal environment changes during the time that you are saving for your educational costs–you want to make the best adjustments that you can along the way.
You want to review your educational returns on an annual basis to see if you are still on target toward meeting your educational funding goals. It is important that you start your educational saving at the earliest time possible in your life stage–whenever possible (no pun intended) so that you give yourself a longer time horizon for investing and therefore increasing the odds that you will reach the educational number that allows you to not borrow at all–or borrow a much lower amount.
By reviewing your educational investment returns on at least an annual basis you can determine if you need to make additional contributions to reach your goals or scale back on your investments and invest those funds toward your retirement and/or other goals that you may have.
Finally, you want to encourage yourself, your loved ones, and all whom you come into contact with–to excel at the highest level possible in all areas of their life!
By doing so scholarships (academic and/or athletic) may be awarded that could allow you to spend less on higher education costs and divert those funds to other areas so that you could continue to increase your net worth as you build your wealth.
When it comes to effective educational planning, you want to know your educational costs upfront as best you can, avoid borrowing or using other sources while you or your child pursue higher education–and have an expectation of successfully reaching your “educational number” by having a written plan of action and a highly focused approach toward reaching that “educational number” so that you avoid burdensome debt.
By looking at your finances at this time (you may need to get more income/cut expenses or do a combination of the two), making improvements when necessary and investing at a level that allows you to attain the growth that would be needed to fund your or your child’s educational number–you make funding your (or your loved one’s) education and avoiding burdensome debt a real possibility.
When inflation and other variables are put into the equation, you can continue your educational endeavors from a position of strength and not be bogged down financially in the future due to poor planning!
If you are forced to borrow due to ineffective planning or facing emergencies or adversity that was unforeseen–you want to borrow from a position of strength, therefore you want to have your credit profile in the best position possible based on your income and credit knowledge base.
If you now at this time or in your future need to borrow and you have or will get a private loan you may be able to lower your rate by refinancing or utilizing your effective credit management to find a credit card(s) that you can use to lower your interest rate or pay off or pay down your student loan at zero percent if you plan effectively and your outstanding debt is at an acceptable level that makes doing so financially feasible.
If you now at this time or in your future need to borrow and you have or will get a public loan (U.S. Department of Education Loan), you may be able to lower your rate by refinancing or utilizing your effective credit management to find a credit card(s) that you can use to lower your interest rate or pay off or pay down your student loan at zero percent if you plan effectively and your outstanding debt is at an acceptable level that makes doing so financially feasible.
Also, keep in mind that debt forgiveness on your public loan in the United States may possibly be forgiven (at some level) or you may have other options available than those who have a private loan, therefore you want to be cautious in refinancing, transferring or paying off student loan debt that is publicly financed. As of December 26, 2021, Student Loan payments for U.S. Department of Education Loans have been paused yet again for 90 days, (undoubtedly due in part to inflation and the COVID-19 crisis) and borrower’s are not required to make payments until May of 2022–barring a further extension.
Always remember that “education and wealth building” involves more than just a formal education–you must think outside the box and find new, more engaging ways of learning–when and where it serves your and your family’s best interest.
All the best to your educational success as you give it your absolute best…
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