Military families continue to be anxious about cuts to defense spending, with 69 percent indicating anxiety and 74 percent anticipating being financially affected by cuts. According to results from the latest First Command Financial Behaviors Index® survey, the top concerns about budget cuts are:
- Reduction in annual pay increases: 38 percent
- Increased responsibility for healthcare costs: 38 percent
- Reduction in retirement benefits: 34 percent
- Reduction in personal expense benefits (housing, clothing, food): 32 percent
Some better news for these families is that fewer are expressing concerns over job security than in previous months’ surveys. In May, less than half (48 percent) indicated such concern. About that same number (46 percent) think that Congress will void sequestration, with more than 37 percent believing Congress should lift the caps on both defense and non-defense spending.
Still, these families are diligently dealing with their concerns through financial preparedness, with more than nine-in-10 taking action. Approximately half of survey respondents indicated they are cutting back on everyday spending and increasing savings.
For more survey details, visit www.firstcommand.com/fbi.
The Senate on Tuesday approved its version of the National Defense Authorization Act with $602 billion allocated to base defense and war spending. The House passed its version last month.
This month marks the 74th anniversary of The Battle of Midway, a decisive battle in the Pacific during WWII wherein United States Naval Forces prevented Japan from securing dominance in the region.
A Tuesday Executive Office memo from the Office of Management and Budget on the Senate’s FY17 NDAA reminded Congress that “any increase in funding must be shared equally between defense and non-defense” as agreed to in the 2015 Bipartisan Budget Act.
It’s the most basic rule of personal finance: spend less than you earn. Of course, it can seem like everyone’s out to separate you from your hard-earned money, from the luxury purse vendor outside the exchange to the Harley Davidson dealer’s tent packed with salesmen ready to give you a “great” finance rate.
Blended Retirement System
A DoD News interview with two department subject-matter experts on the new blended military retirement system outlined the training program for educating all affected parties:
Leader training began June 1 on the Joint Knowledge Online portal and the MilitaryOneSource website, and on DVD at deployed, shipboard and other remote locations.
An excellent Army Times interview with new Army Secretary Eric Fanning revealed his thoughts about the state of today’s Army. The term that kept reappearing in the piece was “predictability.” Secretary Fanning feels that soldiers need more predictability in terms of deployments, the DoD budget, continuing resolutions, government shutdowns, sequestration, training and equipment.
Frugal living is coming back into style, and military families are proving to be the trendsetters.
The latest findings of the First Command Financial Behaviors Index® reveal military families with household incomes of at least $50,000 are putting more dollars toward savings and reducing debt than other middle-class consumers.
The House passed its FY17 NDAA on Wednesday, which included several provisions disliked by the Senate and White House. As referenced in last week’s post, the House version calls for a 2.1 percent pay raise for service members, .5% higher than Senate and White House pay raise proposals.
You probably know that each state sets a required minimum amount of auto insurance coverage that you must purchase in order to legally drive. These liability limits are in place to make sure that you have insurance to help you reimburse another party should you be involved in a car accident and be at fault.