There once was a little, plump piggy bank who lived in a Marine Corps house. From time to time, it was fed with quarters, pennies, and lint. It was a happy piggy bank, growing heavier and heavier, until one day it met its unexpected demise, thanks to the swing of a hammer.
My husband started a Thrift Savings Plan (TSP) just a few years ago. Because we’ve had to wait a long time for a Veteran’s Administration (VA) retirement rating, we’ve had to reach in and cash it out because things haven’t worked out exactly the way we had planned with our financial stability. We’ll have to pay taxes on his TSP for cashing it out early, but we are in a bind and don’t see any way around it. I could kick Murphy’s Law right now.
We have three piglets (I mean children…don’t tell them I said that) at home to support. And as you know, life happens, and so does the unexpected. Our dog, a tiny Yorkie, was attacked while on a walk by a huge and ferocious dog, resulting in a $1500 vet bill, and over the years, our cars have needed major repairs, costing us major bucks. We could have bought “new to us” used cars for the amount we paid in repairs and I swear the last car we had was a lemon. It might have been more useful to us sitting on bricks in a hillbilly front yard. Another time, I needed an emergency root canal, and just recently my crown fell out. I know that’ll need to be fixed – I’ll put that on the list of stuff to do, worry about, and come up with the funds for. I could go on and on.
I think the biggest financial heartache for us was when we received six weeks’ notice to move across country from California to North Carolina, just after the housing market crashed. We had a house that depreciated in value, and we were broke for six months until it sold. We had to get a rather large personal loan to pay the difference of the house. It took us five years of huffing, puffing, and working our tails off to pay it back. We tried applying for a government program that helps military families recuperate financial losses due to Permanent Change of Station moves, but like many others, we were denied.
Even when we thought we were saving for a rainy day, that rainy day would turn into a hurricane with gale force winds blowing our little piggy bank over, smashing it to the ground. All of our nickels and dimes scurried into somebody else’s fat, overfed piggy bank.
Our little piggy bank has gone to the slaughter house many times. So how can you avoid it? My advice is to set up a TSP account NOW, put as much money as you can into your little piggy bank every paycheck, even if it’s only a few dollars, talk to a personal banker who can give you advice. Go to a retirement seminar with your spouse and be on the same page with them about finances. Buy used and save the difference; not everything you own has to be brand new, your brain seems to understand spending when you pay with cash, but not so much when you pay with a credit or debit card.
Most importantly only buy something if your little piggy can afford it, and it will go “Wee, wee, wee! All the way home.”
February 23-28, 2015 is Military Saves Week, where military families are asked to take a pledge to save for their financial future. Best of all, it’s as simple as 1-2-click! Check it out and take the pledge for yourself or your family! As an incentive to pledge, send us a picture (Social@MilitaryFamily.org) of who or what you’re saving for, and you’ll be entered to win a $100 gift card!
Posted by Amy Smith, Marine Corps Spouse