Learn why effective education funding requires that you proactively analyze your finances at this time…
As you (or other members in your household) contemplate your desire to achieve your higher education dreams, it is important that you anticipate the costs that are associated with funding and reaching those dreams.
You must plan in advance for rising educational costs as those costs will normally outpace inflation, therefore you need to have a return at or above inflation to even be in the ballgame as far as effectively meeting your higher education expenses.
In this discussion TheWealthIncreaser.com will stress the importance of starting early when it comes to funding your or your children’s educational costs in the future so that you can enjoy life more and still meet the educational goals that you desire for yourself and/or your loved ones.
Never underestimate the importance of starting early
By anticipating your educational costs at the earliest time possible, you give yourself and other members of your household (who may desire pursuing higher education) additional time to “recalibrate their finances” and reach a savings level that can lessen the burden of rising educational costs that will undoubtedly occur.
You can use the time value of money, market activity and a well thought out plan to increase your capital gains and account earnings over a number of years so that you can make the payment of higher education less burdensome.
Know the number you need to hit to effectively fund your educational costs and then do the best you can to hit that number
You cannot just save consistently with no plan in place that tells you the “number” that you need to hit to make the educational funding number–one that you can use to make the college of choice not only the one that you desire to attend, but one that is affordable as well.
You want to meet or exceed the number that you need to hit so that you won’t have to use your current income (as the creator of TheWealthIncreaser.com had to do), borrowing or other adverse means to fund your or your child’s higher education costs.
Do continuous review so that you can make adjustments if that is what you need to do
In life adversity will occur, and it is how you respond to that adversity that is the real key as to how you will propel toward your goals in the future. You must be resilient and bounce back from “life’s happenings” that throw your educational funding off track.
And you must make it a point to do your absolute best to stay focused and achieve what you need to achieve in spite of occasional setbacks!
You also want to set yourself up for success by consistently investing over time, and automatic contributions to educational funding vehicles will help you do just that if you now have the means—and a long-term plan that allows you to hit the number (or come as close as you absolutely can based on your circumstances) that makes borrowing unnecessary–or at worst less burdensome for you and your family.
Conclusion
Regardless of where you reside, the importance of funding higher education cannot be underestimated as by achieving at a high level you can use your education to unlock doors that you may have never imagined at this time–or even in your future.
Therefore, it is important that you get out in front of your educational goals as higher education normally comes with a cost in many parts of the world.
By starting early, knowing the number that you need to reach to make your educational borrowing costs zero or a manageable number, you can put yourself in position to get the education that you desire and pursue your life purpose; thereby living out your life with more joy.
There are now many educational funding vehicles to choose from including the highly popular 529 savings plan that can be used from the elementary school level to the collegiate level, IRA’s, Coverdell accounts, ABLE accounts, and many other funding vehicles that allow you to save in a manner that you will potentially feel comfortable doing.
If you have two children who desire higher education, and one later changes their mind–you can use 529 contributions of the one who chose not to attend (transfer the funds in their account) on the one who does choose to seek higher education, or the money can revert back to you if no one chooses to go to college (technicalities apply).
In addition, you may be able to deduct the 529 contributions on your state tax return if you live in a state that allows you to do so–and even if you don’t live in a state that allows you to do so, your earnings from the contributions will grow tax free at the state and federal level, if used for appropriate educational purposes!
In spite of your best educational funding efforts, it is not uncommon to fall short–even so you will be in a better position than most–as you will at least have a large portion of what you need to fund higher education for yourself and/or your children.
You can also use Federal Student Aid to assist in meeting the rising cost of higher education. However, realize that it is not your best option–therefore do your best to plan appropriately for your anticipated educational needs in a proactive manner.
Work-study programs and working your way through college are also options to help reduce college costs–and academic and athletic scholarships can also be pursued at a high level to help reduce the costs of higher education as your child moves from middle to high school (keep in mind that your children will generally still have “out of pocket expenses or shortfalls”–even if they receive an academic or athletic scholarship).
In addition, you want to know that at this time in the United States tax code–you (or possibly your child) can deduct student loan interest if you or your child have to take out a loan in the future (income thresholds apply on this and other educational credits and deductions).
Furthermore, if you pay for tuition and fees out of your personal funds or current earnings (AOC credit and LLC credit) there may be tax advantages for doing so–if you qualify. IRAs also allow you to save in a tax efficient manner for educational purposes, if done appropriately. Also, many employers will pay for educational costs of employees in many instances–so if you are currently employed–you may want to inquire into the possibility at your company.
Always remember that time expands–based on your level of procrastination that your mind allows!
It is important that you make the decision now to save for your (or your loved ones) educational expenses in an efficient manner so that you can achieve your educational goals and live out your life more abundantly while here on planet earth.
All the best toward unlimited educational success and consistent saving so that you won’t achieve less…
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