Saving Money on a Military Income: It CAN be Done!

piggy-bankWhen it comes to saving money in a military household, most of us wonder where all this “extra money” is supposed to come from…especially for families in the enlisted ranks. When I was a new military spouse, my husband and I lived paycheck to paycheck. There just didn’t seem to be any other way to do it. How could we save money if there was barely any money at the end of the month?

Like myself, I think many military families may have trouble figuring out where to start, and how to make life something other than ‘paycheck to paycheck.’ And what if an emergency happens? Just charge it to a credit card, right?

Then I learned otherwise.

On a quest to get serious about our financial well-being, my husband and I paid off over $17,000 of debt in just 14 months. All by learning how to save. We followed Dave Ramsey’s Financial Peace University. The trick we used was simple: don’t spend money.

WAIT. Hear me out!

We simply cut back on things that didn’t seem necessary: eating out every day for lunch, buying new clothes just because they’re on sale, or swinging by Starbucks on cold mornings. Oh, and using our debit cards.

Yep. We started using cash for everything.

With certain techniques, we learned to spend less, and save more.

Save Money for the Fun Things
Instead of impulse shopping with money you don’t have (i.e., credit cards), save your money for big purchases. This will give you time to shop around for the best deals, and may even give you time to think about whether what you’re buying is really necessary.

And there’s something to be said about paying for things in cash. Try it sometime and see how it makes you feel. Yes. Feel those feelings. Spending a crisp $50 bill feels a bit different than swiping your debit card. And TWO crisp $50 bills? That hurts! Ok, it doesn’t literally hurt, but you get it.

But Don’t Forget About the Future
Experts like Scott Halliwell, Certified Financial Planner™, with USAA says, “You need to save money for your future.

And he’s not just referring to retirement. Most military families don’t think long term about financial readiness. A Thrift Savings Plan won’t cover everything.

Scott explains, “No matter your age, there is one thing nearly everyone can count on: Your income probably isn’t always going to cover 100% of your wants and needs all the time. As a result, you need to save money today so it’s available down the road.”

My husband and I took this tip very seriously. When we started our financial readiness journey, getting a solid ‘emergency fund’ in place was the top priority. Each pay period, when we had extra money, we put it into our savings account until we hit $1000. It’s grown exponentially since those first days.

We also have a mutual understanding that Emergency Fund money is for just that: emergencies.

Saving money, in any fashion, is one of the smartest things you can do for your military family, in my opinion. What if BAH goes down? How will you cover your off-post rent? If TRICARE requires military families to pay more out of pocket, how will you buy yourself a pair of glasses? With money saved for the future, little ‘emergencies’ seem to be just an inconvenience, instead.

We live in a world where happiness seems to be associated with “things.” Remember: life isn’t about keeping up with the Staff Sergeant next door, and with a savings plan in place, you won’t have to!

Do you have any financial success stories or tips? Share them with us!


shannonPosted by Shannon Sebastian, Online Engagement Manager

One response to “Saving Money on a Military Income: It CAN be Done!

  1. We worked hard to live on a budget. I was lucky enough to be a stay at home military mom. We didn’t have new cars every couple of years. We drove them 10+ years but did keep up with the maintenance and kept them in good working order. Our vacations were often camping trips using military guides to learn about those terrific hidden gems! (Fort Leonard Wood recreation area was one of our favorites!) My kids took their lunch to school. We made our own Halloween costumes. We tried to visit parks and museums that offered free entry or reduced ticket prices to military families. I clipped coupons (I love my coupons!!) It’s hard work but if you establish a goal for your family, update the goal as life changes, and stay focused on the end goal – you can do it! My husband retired from the military fourteen years ago and retired from his second career last year. I’m working now that the kids are grown. My wonderful husband spent many years working long hours away from our family. I love that he can now relax and enjoy life!!

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