Saving: Developing a Long-Term Plan and Foundation for Financial Readiness
August 23, 2013
There’s no silver bullet to establishing and maintaining financial readiness. Servicemembers must be deliberate with regard to increasing their financial literacy and disciplined enough to implement programs that support saving, like Military Saves. Pledging to save and paying yourself FIRST make it easier for servicemembers to define, commit, and implement a plan for saving that will start individuals on the path to financial readiness.
Financial readiness is the foundation on which servicemembers and military families’ build economic stability. More than 200,000 servicemembers per year are expected to transition from active service to civilian life over the next five years and these military families will be increasingly responsible for their own household’s financial future – from managing their own finances online to making investment decisions with their retirement strategy. Financial readiness should be about getting individuals to focus on developing a long term plan and knowing the importance of setting savings goals. It should also be about money management – self-assessment, good credit, budgeting, paying yourself first through saving, which can help you achieve a solid economic base. Through the tools and resources Military Saves provides, you can make smart financial decisions, acquire knowledge to increase savings, and avoid money traps that could set you on the path to financial ruin.
Strategies for Building and Maintaining Financial Readiness
•Establishing a Spending Plan. The most basic component of financial readiness involves establishing a spending plan. This requires taking a hard look at income versus expenses. Doing a simple budget helps to determine the difference between discretionary spending compared to needs. Budgeting can also help you assess your current income and the need to reevaluate their strategies for spending.
•Creating financial goals and striving for milestones. Positive outcomes usually start with a goal and a vision. Having measurable, attainable goals helps you achieve positive financial outcomes. Committing to savings through the Military Saves pledge, a financial institution, or employer based products will help you save for your goals and reach milestones.
•Managing financial responsibility. Credit is a resource that provides access to the financial mainstream but also requires that individuals have a firm grasp on the impact of credit irresponsibility. The expanded availability of credit provides greater capacity to purchase homes, and cars and finance education goals. With this expanded availability, also comes the increased probability of getting in debt that could devastate your households. Take the Military Saves Pledge today to get you free credit score from FINRA.
It is critical that servicemembers and their families build and maintain financial readiness, develop a strategy, and implement a spending plan. Military Saves provides tools and information to empower individuals to commit to a savings plan.
- Category: Blog
- Published: 23 August 2013