Military personnel have a unique opportunity to save money. Many of the essentials, such as housing, will take care of themselves, and the military will still be paid.
But responsible money management still requires skill and a lot of practice.
1. Make sure you know how to maintain your income.
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As a young man in the military, you can expect a significant portion of your salary to be disposable income. You’re so busy exercising, eating in the cafeteria, and sleeping in the barracks that it’s easy to save up money quickly.
Rescuing him is a real challenge, especially when you are out of base. As long as you don’t lose your head, you will be able to accumulate significant savings. How do you do that? Plan, persistently and persistently.
Open a savings account
If you don’t already have a savings account, open one. USAA offers excellent military banking as this bank is only available to former and current military personnel and their families.
Start budget
Even if you don’t have to budget for housing, food and other expenses while serving in the military, someday you will have to do it. Creating a budget now can help you plan for the future, even if it just includes money spent and savings.
More details: How to budget: our step-by-step money management guide
2. Plan your future
We all know this man, the guy who finished his service and retired to enjoy his comfortable life. It’s no secret how he did it – he just planned it well. Regardless of your rank, looking ahead will help you manage your savings. As you move up the career ladder, try to live the same life and maintain the same habits. Don’t live within your means.
More details: Why are you living beyond your means – and not even aware of it!
Behaviorists Dr. Elizabeth Dunn and Dr. Michael Norton explore the idea of ”happy spending” in their book: Lucky money: the science of spending smart…
They offer advice and guidance on spending that anyone, not just the military, can accept. They tend to advise you to plan your expenses and invest in events and moments rather than material things.
In a culture that is gradually moving away from consumerism to a more minimalist lifestyle, such ideas are no longer New Age bullshit, but conventional wisdom. Embrace the idea that if you plan to save now, you can spend time later.
3. Pay yourself first
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When David Chilton wrote Wealthy hairdresser in 1989 it became a hit. The advice was simple and straightforward. Pay yourself first. 10% of all your income should go to savings immediately. The percentage may change for you, but the premise is the same.
More details: Pay Yourself First: How To Save Money Easily
If you’re just starting out, you won’t have any debts or significant bills, so paying yourself is a priority. Decide what percentage of your salary will go towards savings. Setting up multiple savings accounts is another way to split your savings. One account can be for property savings, one for education, and so on. Consider this transaction as automatic as your taxes.
Monthly direct transfers that distribute your salary to your savings accounts are a good idea, especially if you live in a low-cost base. Setting up a savings plan or IRA is a great idea to start with.
4. Education is the best investment in your future.
The military knows that education is vital for everyone, which is why it is so important during your service. In many cases, the intensive training you receive at boot camp will lead to certain college credits. However, you should be wary of this and find out exactly what the details are, as some training is unacceptable or the credits received are unclear.
A GI account is available for you to complete college, vocational, technical, distance learning, certification exams, internships, flight training, and vocational training for veterans and reservists.
Montgomery GI Bill’s education grant can cost over $ 69,000. This is an investment of thousands of dollars in your future, while you are enlisted in the army and for a long time after it. Another bonus is that while you are in the military, you have time to study as your daily routine is different from your usual one. This is the perfect time for advanced training and education. If you are married, there are also educational benefits for the spouses.
5. Invest
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There are many ways to invest your money. Entrusting your money to a professional is smart, especially if you have little experience in the stock market and other investment options.
More details: How to Invest: Important Tips to Get You Started with Investing
6. Use VA Loans
The Veterans Affairs Administration home loans remain one of the most useful military aids. Eligibility for this loan can help you buy or refinance a mortgage with a $ 0 deposit, fair rates and financing up to $ 424,000. It’s important to remember that you don’t need to buy a mega mansion.
Maintaining large homes quickly becomes costly and you will always need a sizable contingency fund for emergencies.
Commercial and industrial properties are often overlooked as investment opportunities, but they can provide long term tenants, which means getting long term money for you. Your credit score will directly affect your eligibility for VA loans, so you should always be careful about your spending.
7. Save on health care.
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Protecting the freedoms of millions is a task that military personnel have a hard time taking. And putting your life on the line is a sacrifice for which we are all grateful. Because of the risks associated with military service, all members of the armed forces and, in many cases, their dependents are entitled to free medical care.
The Department of Veterans Affairs provides free inpatient and outpatient health care that is classified as essential to “maintain and restore health.” While plans may differ, some of the main coverages include treatment for brain injury, post-traumatic stress disorder (PTSD), blindness rehabilitation, radiation treatment, and more.
When it comes to determining coverage and eligibility, the Veterans Health Council is on hand to answer questions, help with claims, and offer exceptional and accurate advice.
In addition, dental care is free for current members as excellent oral hygiene is required to maintain your deployment status.
8. Focus on the little things.
After you’ve opened your savings accounts and taken advantage of the educational and mortgage benefits offered by the military, it’s time to start thinking about the smaller benefits. The old adage “Take care of your cents and the dollars will take care of themselves” rings true here.
Get gasoline at the base
As a member of the service, there are many small things you can do to save money here and there. For example, did you know that gasoline is usually the cheapest of all basic gasoline? Refill your tank before leaving base to take advantage of one of the lowest gas rates in the area.
Store in store
Service members can also take advantage of in-store shopping, which often boasts prices even lower than Walmart and other discount chains. This is because the store has to sell items at cost, which means huge savings on your groceries and home furnishings.
The Commissioner also does not collect regular taxes on products. However, they charge a 5% markup instead. In addition, the store has coupons to use and they also accept coupons from civilian retailers. However, you cannot combine these offers for additional savings.
9. Use your military discounts.
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Whether you’re in a conflict zone or a California base, you can save on military discounts. Many entertainment venues offer discounts for military families; often all you have to do is ask.
Your spouse is also eligible for educational assistance through the Military Spouse Career Accounts for scholarships and tuition assistance. Find out exactly what you are entitled to and benefit from the many businesses that happily support our army. You’d be surprised how many companies are owned by veterans. FedEx, Walmart and Nike are all owned by veterans.
10. Take advantage of the help that exists for your spouse.
Military life is hard. In addition to the extensive training and risks associated with serving in the military, your family may be under the pressure of constant relocation. Packing up and moving to a new base every few years can take a toll on yourself and make it difficult for military spouses to get a job.
The Veterans Employment Center can help relieve some of that stress by helping spouses find new employers and find work suitable for military life.
11. Learn about tax breaks.
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One of the most significant surprising benefits of serving in the military is tax breaks. For example, if you are sent to a war zone, you are eligible for an exclusion from the battle pay. This means that your income for this period is not taxed. In addition, you can deduct expenses including flat deduction, ROTC allowances, and reservist travel deduction.
These are just a few of the government benefits you can expect from the sacrifice you make for your country. Your best bet would be to work with a tax expert to ensure that all of these benefits are fully valid for you and your family, or use tax software to help you figure out all the benefits and deductions to which you are eligible.
More details: The best tax software in comparison
Summary
Military service is a decision that will affect every aspect of your life. The sacrifices you make for this country are not discounted, and there are many significant opportunities you can take to make your life easier.
Whether you’re putting off something big or just want your family to live comfortably at all times, saving money for the military is an important task that should always be on your mind.
Your turn: do you have any other tips or tricks for saving money in the military?
