Tag Archives: Military Saves

Hey, Millennials! Saving Money Isn’t Scary, and Here’s Why You Should Start

I’ve always heard people say that they think Millennials understand and see things differently. Sure, we were born after 1980 and we were the first generation to reach adulthood in a new century, but I think the excuse, “It’s because they are a Millennial” has started to become more of a misconception.

Millennials don’t want, or know how, to save money. That might be true, but it’s not because we are millennials. I think it is more accurate to say there are two different fears that millennials faces when thinking about saving: ‘losing’ money or having it ‘taken away’ through deductions, and not having enough money at the end of the month.

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I have a simple tip that can address both of those fears: make your money visual.

Budgets are cool. When people hear budget your money, most young adults think it’s complicated and full of spreadsheets. But it doesn’t have to be! It can be as simple as having a calendar and visualizing your money. Before you start writing on the calendar, write down all of your monthly bills, add them up until you have a total of your monthly bills. Then write down your income (how often you get paid a month and how much) and total those together. You can then subtract those two totals and know how much spending money you have for the month.

Visuals make savings real. For some, this might be visually enough but I suggest taking it a step further. Using the calendar, write down when your bills are due and the amount owed, then write down your pay dates. Look at when your bills are due and when you get paid. On your calendar, next to your pay date, write how much from that one paycheck needs to go towards bills.

Monthly planning works. By doing this monthly, you are able to visually see your money coming in, and where your money is going. This helps in other areas of your life where money is involved. Visually seeing your money will make you more aware each month of how much money you are able to spend. And after a while, you will even be able to see how much you typically spend on common items such as groceries and gas, which you can then subtract from your monthly spending. Eventually, with practice, you’ll be able to see how much you can save each month. It might not always be the same amount each month, but you will be able to consistently put some money away.

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Cherish your hard earned money. Making your money visual and being aware of it can prevent you from making those impulse buys. Avoid those very tempting impulse buys by waiting a day or two, and see if you still actually want to make that purchase. Most of the time, you will no longer feel the need to buy that item. You might even forget about it.

Budgeting doesn’t always have to be complicated–it can be as simple as writing it down and making it visual. Take the first step towards responsible budgeting by making a pledge to save. It’s not scary, and it’s so easy, even a Millennial can do it!

What’s tip has helped your family budget and save? Share it with us!

Patricia-CPosted by Patricia Contic, Government Relations Coordinator, Resident Millennial and Saver

When a Saver Marries a Spender…and a Few Tips That Might Help

We were 20 and 23 when we married. I was a few months into my first job and my husband was in college. We took marriage prep classes through our church and discussed an array of topics from future kids and our perspectives on money.

We outlined our financial goals and priorities:

  • Support ourselves with jobs and income independent of our parents
  • Save for a down payment on a home
  • Save for the future

Creating shared goals was a great start but living the shared goals was another story. How should we prioritize paying off our student loan debt, saving money for emergencies, saving to buy furniture, and saving for the unknowns of the future (i.e. kids, retirement, dead car battery)? Living on one income, we had a very tight budget.

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This was where I began to notice our different feelings about money. If we were out of [insert household item here], one of us would jump in the car and run to the store to buy it. The other person would add it to the shopping list and wait to replace the item during a planned trip. One of us would clip coupons and only buy an item if it was on sale. The other was brand loyal and didn’t see toothpaste as toothpaste, and would only use a particular brand whether it was on sale or not.

Making decisions about how to spend and save money wasn’t easy. One of us wanted to save for a rainy day while the other wanted to spend our hard-earned money to buy a well-deserved treat/item/experience. We each played the role of “saver” and “spender.”

How did we resolve our different philosophies towards money?

We didn’t.

Instead we learned we needed to have continued conversations about money and develop short-term and long-term financial goals. After my husband joined the military, we participated in several free financial workshops hosted on base, online via Military OneSource, and even met with a personal financial counselor.

Here are some tips that have helped us along the way:

  • Set money goals and make a plan to achieve your goals. We were off to a good start by setting goals, yet we didn’t really have a plan. In the early years, the plan was to save whatever was left at the end of the month. This didn’t work for us because (1) there wasn’t money left and (2) we wanted to spend the money on something we felt we deserved.
  • Make savings a habit by “paying” yourself first. Whatever your goal is, you’ll need to create an action plan to achieve your goal. We decided to automatically put money into a savings account each pay period. We each set up an automatic deduction from our payroll account into a separate savings account. The amount we set aside changed as our income fluctuated. What is important is that the money is set aside in a separate account.
  • Review your goals and plan often. Most years our goals stayed the same – we still wanted to save for emergencies, a house, and our retirement, yet the plan to reach the goals would change. After a move and a break in employment, we had to adjust how much we set aside.

Military Saves is a great opportunity to pledge to become a saver. Yes, a saver and a spender can live happily ever after with shared goals, a plan, and an adjustment or two. The first decision is figuring out which one you are: the saver, or the spender.

How do you and your spouse reach financial goals together?

katiePosted by Katie Savant, Government Relations Issue Strategist

5 Tips to Fund Your Military Family’s Future

New Years can call for reflection and resolutions to set the next 365 days in the right direction. You resolve to take care of yourself, your military family, and this includes your financial well-being, too. If you’ve decided that this is the year to take charge of your finances, take advantage of these five budget tips to monitor your monthly expenses.

Fund-Your-Future

Organize Your Bills Digitally
There are many software programs, online services, and apps available designed to help a person track their monthly bills digitally. Some of these services require paying a few dollars a month. However, others are completely free. Money Stream is a free online service that can alert you when bills are due with a calendar interface.

Track Receipts
Bills are only part of a person’s monthly budget. If you want to get a clear picture of how your finances are being spent, track all of your receipts. But doing this by hand can be a real pain. Thankfully, there are receipt scanners and smart phone apps that can automate the process for you and add totals to a database.

Consider VA Loans
If you are a service member, veterans, or eligible surviving spouse, take advantage of the Veteran Administration’s loan program. A VA loan is a type of mortgage guaranteed by the federal government, but made available to veterans and service members through different lenders, some that even provide loans with an interest rate 2% less than expected. VA loans have some great benefits for many prospective home owners, like not needing a down payment. They also offer interest rates lower than comparable conventional mortgages.

Create an Emergency Expense Account
You should have one savings account that is strictly for emergency expenses. This can include sudden bills, like when your car needs unexpected repairs, or if your plumbing goes awry. You may also have health bills and need to pay off a good portion of your deductible at once. This account should have a few thousand dollars in it and be replenished as the money is spent.

Create Budgets
Create budgets to track your expenses. This should include budgets for particular months, as well as budgets for the week. You can do it on paper, or even in a spreadsheet file. This way, you can add totals and change numbers around as needed.

Fiscal responsibility is something that is important for everyone to manage properly, especially as a military family. Take advantage of the resources available to you, and put some plans in place to make sure you have the ability to accurately track your expenses. Avoiding debt is always worth the effort.

Will you try any of these tips with your military family’s budget? Let us know! 

Posted by Rachelle Wilber, a freelance writer living in the San Diego, California area. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter: @RachelleWilber

In it to Win it: Basic Training for Your Finances

Money-coin-stack300pxThe Department of Veterans Affairs reports service members are twice as likely to have credit card balances of $10,000, or more, than civilians. The typical recruit is a young adult without much experience in managing money. It’s never too late to make changes, but it requires a new mindset.

Taking control of your finances is like the paradigm shift marking the first day of basic training. Using a similar “in it to win it” approach to financial choices means a more stable future.

Avoid Scams and Pitfalls
Payday loans and other short-term, high-interest lending offer a quick fix, but experts say it’s the worst decision you can make. Average interest rates on a two-week loan are 391 to 521 percent, according to the Center for Responsible Lending. Car title loans, which use your vehicle as collateral, also charge interest rates in the triple digits; plus, you could find yourself without a car if you don’t repay in full. Instead, hit the reset button:

  • Create a practical action plan cut back on expenses, pay down high-interest debt and build an emergency savings fund.
  • Take advantage of the Thrift Savings Plan, or use your bank’s automatic debiting feature to set aside a portion of your paycheck.
  • Consider US Savings Bonds. Always shop around for the best bank rates.

Save Money Every Day
Nickels and dimes add up to dollars. A recent survey shows military families are cooking instead of eating out (58%), clipping and clicking coupons (43%), buying fewer clothes (49%), and bringing a packed lunch to work (49%). Think of saving as a game and build it into your everyday life.

  • Good planning starts with a budget. Know what is coming in and going out. There are many good apps out there to help.
  • Opt for paying cash instead of debit cards or credit cards.
  • Create a cash envelope system – literally putting cash in envelopes marked Groceries, Shopping, Utilities, etc. – to make sure spending stays in check.

Plan for the Future
Do you want to send your children to college? Buy a house? That requires planning. Don’t live for the moment; think ahead to the 20-year mark. What will you do and how will you pay for it?

  • Consult a professional. Every installation has a designated Personal Financial Manager available to help you, at no charge. If you want to take it to the next level, hire a certified financial planner.
  • Volunteer members of the Financial Planning Association offer free, unbiased financial coaching across the country. They can help you create a budget, readjust after deployment, and learn about types of investments.

Aim for Financial Stability
Serving in the Armed Forces is a job that comes with sacrifices. Your financial well-being shouldn’t be one of them. There are many resources out there, from apps to trained professionals, who can help you get a handle on your finances, but it all starts with your decision to act.

Have you used any of these tips before? Did they work?

Posted by Marie Hickman, a former military spouse and blogger specializing in saving money, personal finance, and frugal living. She writes for Valpak.com and other websites.

My Military Family Paid off $20k in 13 Months: Here’s How!

financial-freedomThere 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.

February 23-28th is Military Saves Week, when service members and their families are encouraged to take the pledge to start saving and put your family on the path to financial freedom.

Have you found an awesome way for your military family to save money? Share it with us in the comments!

shannonPosted by Shannon Prentice, Content Development Manager

Can Military Families Save Money on One Income?

calculator-and-coinsMy last paycheck came in, and it was a small one. I had just quit my job but had another one lined up, so it wasn’t a big deal. But on that day, I looked at my bank account and asked myself, where did all the money go?

My bank account reminded me of a clock moving counterclockwise. I thought about all the jobs I’ve had, from part time to full time to side jobs, and thought about where all that money had gone. I even wondered the same thing during the stint where I ended up with unemployment benefits after a layoff. If I had only just put all that money away and made it to where we lived off his salary, I could have a few thousand dollars in a savings account by now. But it didn’t happen that way.

My husband and I are blessed that we can survive on his salary alone, so whenever I have had a job, I’ve taken on the grocery bill, gas for my car, my bills, entertainment, graduate school (out-of-pocket, and a pretty penny), half of the daycare expenses, and anything else that was, what I consider, a minor expense. That way, it doesn’t go under my husband’s list of expenses.

However, some of the jobs I took never paid enough for me to actually put a good chunk of money away in savings because of these same expenses. And that’s a major problem for military spouses. Granted, I am also not the best saver, but when you have a low-paying job coupled with everyday expenses, I was left with no motivation to even put a mere $20 away. And with school-aged kids now, something always comes up. So many small things get in the way of saving.

Speaking of something always coming up, I had to get new clothes for work because my size changed after I got married… and after I had kids… and after I stopped having kids. Thankfully, I always headed for the clearance racks, and that helped me save some money. I also bought clothes for my kids as they got bigger. The money we could have saved would have been spent on other necessities, first and foremost, but also entertainment things, so I don’t regret the purchases.

It’s not all a loss though. I’ve been able to put money away while I’ve been employed, and kept it safe from my spending habits, but the amount is not nearly enough. I wish I did have a few thousand dollars saved up. We do have a family emergency fund, and it’s a nice little cushion, but for my personal financial well-being, my own savings are not enough for what I’d like.

Now, getting ready for a new PCS move, I hope to find a better job that pays more so I’m motivated to save more. I also want to find where I can cut my expenses so I’m not left with the lack of financial motivation to put a little money away.

February 23-28th is Military Saves Week, where military families take charge of their own finances and savings. Don’t wait until your bank account dwindles to nothing – living paycheck to paycheck doesn’t have to be your reality. Take the pledge to save NOW.

And to make the deal even sweeter, if you send a picture of who or what you’re saving for to Social@MilitaryFamily.org, you’ll be entered to win a $100 gift card to put towards your new savings goal!

Are you a one-income family? How do you save money?

Posted by Sylvia Salas-Brown, Military Spouse and National Military Family Association Volunteer

This Little Piggy Bank Went to the Slaughter House

money-resolutionsThere 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