I remember when my husband and I made our first concerted effort to save. He had just left for his first deployment and I decided I wanted to sign up for the Savings Deposit Program (SDP). Fresh off a pre-deployment brief, I wanted to put my newly found knowledge to good use and take advantage of this great savings opportunity.
A military member can deposit funds into a SDP account once he or she has been deployed for 30 days. The military member must be receiving Hostile Fire Pay. A total of $10,000 may be deposited during each deployment and will earn 10% interest annually. This sounded like an attractive option for us.
Although my intentions were good, we didn’t get a chance to set up the account before my husband deployed. I went to our local finance office and learned I would need a special power of attorney to set up the SDP account on my husband’s behalf. (My general power of attorney wouldn’t work.)
I didn’t let this setback derail us from our long-term savings plans. Instead, I researched products available through military banks and credit unions and settled on a money market account. Every other week I would take my paper paycheck (yes, I worked for a small employer who did not use direct deposit) and deposit half of my paycheck into our new money market account. I calculated that about half of my paycheck was the additional funds we received while my husband was deployed, which included the family separation allowance, hostile fire pay, and tax benefit.
By the end of the deployment, we had a good savings foundation! The most valuable lesson we learned was about financial discipline and how to save money. We successfully accounted for savings in our budget. It was no longer an afterthought, but a regular habit.
My husband and I are faithful savers today. I look forward to the messages I receive from the Military Saves campaign in order to help find new ways to save and to stay on track.
What helped your family start to save?
Posted by Katie Savant, Government Relations Information Manager at the National Military Family Association and blogger at www.MilitaryFamilyCents.com, where this post originally appeared