Seven tips for managing your money
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. During 2015, on average:
- 72 percent of military families contributed monthly to their retirement accounts and short- and long-term savings versus only 38 percent of other middle-class Americans.
- 76 percent of military families put money toward debt reduction payments each month versus 50 percent of the general population.
These impressive results suggest that military households are dedicated to taking control of their personal finances. Their continued focus on fiscal responsibility is a model for the nation at large.
So how strong are your financial habits? Do you make saving money and cutting debt a priority? Or does money slip through your fingers in spite of all your good intentions? First Command Financial Services offers a few helpful tips for managing your money.
Tip #1: Establish specific goals for things you really want. Saving as a matter of principle just doesn’t provide the necessary motivation for most people. You must have definite goals – things you really wish to have.
Tip #2: Set definite deadlines for reaching your goals. Be realistic about how much will be required to reach your goals. How soon will you need it?
Tip #3: Pay yourself first – fundamental to every financial plan. When you make out the checks to pay the bills, don’t put yourself last. You may never get there. Make that first check out to yourself.
Tip #4: Get your money out of sight and out of mind. Automatic savings tools – such as bank drafts and the Thrift Savings Plan – are an excellent means to this end.
Tip #5: Establish specific accounts for each separate goal. If you have two or more basic objectives, establish two or more accounts to achieve them.
Tip #6: Stick with your plan. The best plan in the world is useless if it is not activated or if it is abandoned. If your goals are meaningful to you, you must stick with your original plan.
Tip #7: Hire a financial coach. Military households who have a financial plan through a financial planner are more confident that their financial situation will improve in the next year and in their ability to retire comfortably than those without a financial advisor.
Following and sticking to these tips are indicators of a strong commitment to ensuring success with your financial future.
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