The military provides job stability to many Americans and has been life-changing for many people over the years. However, many service members find themselves struggling with their finances, especially if they’re younger and inexperienced.

Despite these financial challenges, it’s possible to become more financially literate and start saving for your future. Below, we’ll talk about the importance of managing your money and how you can take care of your finances while you’re in the military.

Why It’s Important to Start Managing Your Money in the Military

It’s challenging to save money in general, especially when you’re young and just starting out in your career. However, service members face many unique challenges when it comes to their finances. For example, many of our troops leave their support systems sooner than others, which can leave them more vulnerable to debt if they stumble on hard times.

Financial stability can also be hard to manage for service members because of reasons like:

●Frequent moves or deployments

●High cost of living at certain duty stations

●Lack of financial experience

●Predatory loans

●Challenges maintaining spouse employment

It’s important to start managing your money now so you can get out of debt and save for your future. The sooner you start, the easier it will be to save what you need so you’re not playing catch-up later in your life.

Our Money Management Tips for Service Members

Learning to manage your money can be stressful, especially if you don’t know where to start. If you’re trying to better your current financial situation and prepare for your future, consider using some of our money management tips below:

1. Start by Creating a Spending Plan or Budget

It’s hard to manage your money when you don’t know what you’re making or how you’re spending it. One of the first things you should do is write down all your expenses, such as rent, mortgage payments, utilities, childcare, vehicle payments, and anything else you may have. You should also write down how much you’re making each month so know what you have to spend and save.

If you’ve never created a spending plan or budget before, you can always find financial managers or counselors at your installation. They can take your information and help you create a budget that suits your unique financial needs, whether you’re trying to pay off debt or save for your future.

2. Save Money Every Single Day

If we’re being honest, all of us make unnecessary purchases from time to time that cost us more than we realize. The $5.00 cup of coffee we buy every morning or the stops at the drive-thru every day after work eventually add up, and you might be surprised at how much you’re actually spending on unnecessary items.

You don’t need to cut everything out of your life, but take a look at what you’re spending and see if there’s anything you’re willing to reduce or eliminate from your spending so you can start putting that money in your savings instead.

Some common ways to save money each day include:

●Eating out less: While it’s nice to eat out from time to time, it can be a drain on your bank account if you’re doing it nearly every day. Making a homemade meal is usually cheaper since you’re only paying for the cost of the ingredients. If you want to eat with friends or family, you can host a potluck to help reduce costs while still enjoying a meal with loved ones.

●Using military discounts: As a service member, you have access to military discounts at a wide variety of retailers, and the savings can be significant. You should take advantage of military discounts whenever they’re available to you, and the money you save can go into your savings account or towards paying off your debt.

●Using your installation’s amenities: Most military bases have different amenities you can use for free, such as gyms and recreation centers you would have to pay for monthly in the civilian world. You can also use your local public library to find free books, videos, music, and more.

●Avoiding impulse buys: We’ve all made an impulse purchase at least once, but it can be easy to fall into the habit of making impulse buys frequently. Rather than buying something on a whim, take at least a week to think about your purchase to make sure it’s something you really want. You may even be able to find the item cheaper if you take the time to research different retailers and their options.

●Finding free activities: There are plenty of fun things you can do without having to spend money. You can check the newspaper of your city or installation, which will often list free events you can attend with your family and friends. Social media sites may also have local groups you can join that will post about free events happening in your area.

3. Think About Your Financial Future

You need to think about your future when you start taking care of your finances since a lot of your savings and spending will help you later in life. Ideally, you’ll want to save enough to help you live comfortably in the future, which will take time but will be worth it. Some ways you can start saving for the long term include:

●Use free checking accounts: If your bank requires you to pay fees if you don’t maintain a minimum balance, you should consider switching to a bank that doesn’t charge these fees. Your installation will likely have a credit union or a bank you can use that won’t charge these rates, allowing you to save more and eliminating an unnecessary expense.

●Use the right ATMs: ATMs that don’t belong to your bank of choice often charge you fees that can add up if you’re frequently pulling out cash. If you’re making debit card purchases, many retailers will let you pull out cash without charging you an extra fee like you’d have with an ATM.

●Work on your credit cards: If you have any credit cards that charge annual fees, you may want to consider looking for another card that doesn’t have these fees. Some cards without annual fees also have lower interest rates, which will help you save money as you’re paying off your debt. Aim to make payments on time each month so you’re not incurring any late fees.

●Look for good deals: As you’re shopping for insurance, a phone plan, internet, and other services make sure you’re looking for the deals to help you cut costs each month. Your current provider may even have some promotions, so it may be worth calling them to see what they’re offering.

●Save energy at home: When you’re not home, you can save money by lowering your heat, turning up your air conditioning, and turning off all your lights so you’re not using energy and costing you money when you’re away. There are also some smart home products you can use that can help optimize your energy efficiency, such as smart thermostats.

●Find ways to cut costs: When you look at your spending habits, consider if there are any places you can cut costs, such as unnecessary subscriptions you’re not using or excess spending on fast food. You might be surprised at how much you’re spending without meaning to and how much you can save if you reduce or cut these expenses.

●Put money away each month: The obvious way to save money is to budget money from your monthly paychecks to push into a savings account. The amount will depend on your goals, such as how much you want to have for retirement, if you’re saving for a new home, and how much you think you’ll need for emergencies. Stay consistent with your savings and watch how your savings account grows.

4. Make Payments on Your Debt

If you have debt, you should use some of the money you’re saving to start paying it off. Having debt issues is nothing to be ashamed of as long as you admit the problem and take the necessary steps to pay off your debt.

First, assess how much debt you have and create a goal for when you’d like to have your debt paid off, whether that’s in a few months or over a year. Make sure your goal is realistic so you’re more likely to stick with it in the long run.

When you’re making purchases, do your best to stick with cash or debit. Ideally, you would only want to use your credit card for emergencies, but you should also try to have an emergency savings account so you avoid spending money you don’t have. If you need to, you can put credit cards in a secure location in your home so you don’t take them with you and use them on impulse when you go shopping.

5. Make Sure You’re Saving for Retirement

When you’re in the military, you have access to the Thrift Savings Plan (TSP) so you can start saving for your retirement. You can have a percentage of your paycheck allotted toward this contribution plan, and you should consider increasing how much you save each paycheck each time you get a pay increase.

The amount you receive when it’s finally time to retire will depend on how much you contribute to the account while you’re active duty. You should try to put as much into this account as possible while you’re still working so you’re set up for your future.

Take Advantage of Our Discounts at MLC

In many cases during your military career, you’ll find that you need a bag or pack for your operations. The good news is that Military Luggage Company offers a discount for service members on all our products to help offset some of the costs of purchasing a brand-new bag.

With our discount, you can get a high-quality bag at a lower cost, helping you save money while still helping you haul all the equipment and gear you need for your operations. You can check out our complete selection to find exactly what you need, or you can contact us with any questions or concerns!