There we were, sitting on our couch, looking at our online banking while deciding what to do for dinner. My husband and I did a double take simultaneously, “We only have $37.00 to last us until next payday…which is 5 days away.”
We were scared.
We sat quietly, surrounded by all of our things; 48” flat screen, two new cars in the driveway, brand new shoes, and that wreath for the door I just HAD to have. We were chained to our things, reflecting on how we’d gotten there.
We were both just 23 when we got married, he’d been in the military for a little over three years, and I’d only been out of college for a year, and had lived with my parents only a few months earlier. I thought we were on the straight and narrow with our finances – I had a full time job with the state government that paid me about $32,000 a year, and our rent was covered, thanks to BAH. We were golden. Or so I thought.
It wasn’t until that day with only $37.00 in our joint account that I realized we needed to find a new way to manage our money. We had no savings, and had bought a brand new bedroom set with the few thousand dollars we got from wedding guests. Newlywed life was paycheck to paycheck for us, and at the time, I thought it was okay. At least we had a nice bedroom set. In reality, we were one ‘emergency’ away from having it all come crashing down. Ironically, my husband is a Command Financial Specialist, and has counseled many other Sailors with their own finances.
So, in 2012, after 3 years of marriage, and pushing countless paychecks to the brink, we took control of our money. We didn’t want to see what would happen when the ‘rainy day’ came without a decent umbrella in tow. By this time, we had PCS’d to another state, and I had gotten a new job, paying $34,000 a year.
We decided to take a popular religious-based finance class at our local church. There, we learned how to pay down our debt in the fastest way possible – from smallest to largest. We figured out how to account for every cent and give each penny a purpose. And we stopped using our debit cards for anything except gas, and to pay our bills online.
We cut back tremendously, and used cash for everyday things: groceries, dog maintenance, and the occasional lunch or dinner out. Every other dollar went towards our debt: two car payments and school loans. By following this plan, we paid off nearly $20,000 in 13 months, on top of our usual monthly bills.
Today, we still use a ‘cash budget,’ and put hundreds, sometimes thousands, of dollars into our emergency fund each month. ‘How-in-the-world-will-we-be-able-to-pay-for-this’ emergencies are now just little inconveniences. Like the time our dog got sick while we were on vacation, and we rushed her to the doggie emergency room. Nearly 4 hours and $475 later, we paid in cash and took our fur baby home to mend.
Many military families live paycheck to paycheck – like we did. But this does NOT have to be your reality.
As an incentive for you (yes, you!) to take the pledge and start saving, if you send us a photo of who or what you’re saving for, you’ll be entered to win a $100 gift card to help get started! Send your picture to Social@MilitaryFamily.org, and be sure to include your name, email address, and what you’re saving for!
Have you found an awesome way for your military family to save money? Share it with us in the comments!