Getting your Finances in Order for 2012
By Colonel Dale Kissinger, USAF (Ret), MilitaryAvenue.com
1/6/2012 - This is the time of the year for resolutions and many of us make them (or goals as some suggest is better terminology). Many of those goals include improving our finances. The military community is young and faces numerous financial challenges that civilians do not. For example, our frequent relocations and deployments are unique. Our sometimes confusing income divided between pay and allowances can suddenly change. Housing (BAH), Rations (BAQ), special pays (eg, combat or flight pay), Dislocation Allowance, PCS mileage rates and many others create a confusing picture of the military individual’s income. Budgeting a moving target is difficult.
The average age of a military person is younger than the America population and the financial challenges they face are acerbated by this fact. The Department of Defense, other government agencies and non profit organizations are seeking to help. Focus on debt reduction like this effort from DoD’s Military Saves Campaign are intended to help the young troops find methods to save and invest wisely. You can find more on the campaign at http://www.militarysaves.org/ . Military Saves Week is 19 to 26 February 2012 and features national and local campaigns to encourage military savings. One of the leaders of the campaign is FINRA (Financial Industry Regulatory Authority) with free resources at their Investor Education Foundation specifically addressed to the military community (Military Financial Education Project). You can even find posts on their Facebook Page for new resources and tips.
Are you ready for 2012? Financial planning can be difficult but here are some ideas from FINRA to get started. “Weathering Tough Economic Times—12 Tips for 2012” This article provides some great information and links to other resources as well. These are the Tips, go to the link for the full information and links but this will give you some ideas on how to get started. Thank you FINRA.
- Start a Rainy Day Fund.
- Handle Credit Cards With Care.
- Check Your Credit Report and Score.
- Shop Around For Financial Products.
- Don’t Leave Money on the Table: Contribute to Your 401(k).
- Avoid Payday Loans and Other Money Drains.
- Don’t Overdraw Your Checking Account or Debit Card.
- Do a Background Check on Your Financial Professional.
- Keep Your Insurance Coverage Current.
- Diversify Your Investments.
- Save for College Using Tax-Advantaged Accounts.
- Find Free, Reliable Financial Education Resources in Your Community.
Other great resources are available for military personnel such as the counselors at your family service centers, military friendly banks and credit unions, installation counseling for new arrivals and local resources. Remember number 12 above – these are free resources that can help you plan and budget.
Stay focused on the end game – financial security and debt reduction.
Related Articles:
More Great MilitaryAvenue.com content:
Find Military Discounts in your community
You have Questions? We have MilitaryAvenue Answers!
Our Letters to You, MilitaryAvenue.com's Military Family Blog
Subscribe to MilitaryAvenue Alerts, monthly military-discounts & incentives right to your email box: Manage Subscriptions
The Reading Room, full of relevant news related to the military family
Moving Tools, Our Moving and Relocation Tools for Military Families