Financial Tips for Military Families
If you are a military family, then it is essential to be financially prepared. The average military salary is not enough to cover the cost of living in most areas. Thus, it would help if you always practiced financial responsibility. This article will provide tips on making your money go further and keeping up with each other’s finances.
Have your own Savings Account
The first step is ensuring that everyone has their savings account to deposit any extra money they get from jobs or gifts. Decide who will have access to the accounts and what type of transactions are allowed before opening them. It may seem like common sense, but many people don’t follow this rule. Next, create a budget together using online tools. Everyone should have access to the budget, and each person needs to be held accountable for their spending choices. It may seem like a hassle, but it will help you stick to your goals and avoid overspending on impulse buys. This is also an excellent time-saver since everyone knows what bills need to get paid, so no, perhaps about them later.
Make a List of All Bank Accounts
Another thing that military families struggle with is making sure they are financially prepared for emergencies or deployments. Make lists of all bank accounts, credit cards, savings & checking accounts, investment portfolios. Also, debts owed, property deeds/titles/mortgages, insurance policies, licenses, or certifications. Make copies of everything on the lists, put them in a safe place, assign someone to keep track of them, or have other people hold on to specific keys or documents. If you are sharing bank accounts with your spouse, both parties must know where all financial information is at all times. Finally, make sure everyone involved knows what to do if one person goes missing (or worse).
If you are having trouble making ends meet, make sure that you do not go into debt. It is easy to get yourself in over your head when buying items on credit since there is always something else coming up next week if you cannot afford it now. Always ask yourself whether that purchase will be an expense before putting anything on plastic. If it isn’t something that can wait until payday, then don’t buy it.
Avoiding extreme debt can ensure financial freedom throughout the military career span. Here are some tips to keep in mind when paying debts:
• Do not let yourself fall into the trap of credit card addiction by only using plastic as an emergency fund backup plan.
• Set up automatic savings so you won’t have to think about it every month. This way, your retirement funds will increase without even putting too much effort into saving for later life.
• If possible, consider starting an investment portfolio if you have access to one through work or other means. This can provide a more constant cash flow stream to help you manage your debt.
• Stay up to date on payments for your loans, such as a VA home loan bad credit.
Make a budget and stick to it, no matter what
No one enjoys feeling like they are living paycheck to paycheck, but sometimes that is the reality of military life. If you make a strict savings plan for yourself and your family, you will be ready if something goes wrong with your car or an unexpected medical expense comes up.
Keep up with bills
Military families can easily get overwhelmed by their finances. Why? Because there are so many options available to use. Each member of the family needs to keep up with bills & spending. Instead of relying on others 100%, which will help avoid problems later down the road.
Learn About Your Benefits and other Resources
Another tip for military families is to learn more about their benefits and which resources they have available. With so many choices out there, having access to information about income support services or additional help to complete tax documents could benefit those who wish to maintain stability within their homes. While being away from loved ones for an extended period, other organizations exist specifically designed to help those in need have a better chance at success.
As a military family, you will be exposed to different living and thinking about money – from very frugal lifestyles to high spending ones! You can learn from them all, but make sure that it works for your station in life. Make sure not to be swayed by peer pressure regarding how many things cost or where one should go on holiday every year. Being financially fit means being independent, free of debt, & having some savings set aside from impulse buying, which is hard when everything seems so expensive these days.