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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 SavesPledging 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.


Tip of the Day

  • Written by | September 30, 2014

    Rounding #debt and #mortgage payments up to the nearest $100 will get you out of debt years earlier.

Saver Stories View all »

Savers Pledge Leads to Savings Success

Written by Super User | October 13, 2011

My name is Rob and I am a Staff Sergeant in the Marine Corps Reserve. My financial success is a huge result of the Military Saves Campaign.

My journey began five years ago after marrying my wife, Lisa. We entered our marriage with no savings plan in sight, carrying debt and living in a tiny apartment. After seeing an advertisement for Military Saves, we decided to grab the reigns of our finances and implement a positive financial plan.


Making Savings a Part of Marriage

Written by Super User | November 26, 2010

Capt. Rob Eckhardt is the first to admit that he hasn’t always been responsible with money. But less than 10 years after a rocky start to saving, Eckhardt reports that he and his wife are free from credit card debt, have a down payment on a home, and are saving regularly for retirement. And, as the Military Saves representative for his Air Force squadron, he’s helping others make similar progress.


On the Right Track to Build Wealth

Written by Super User | April 16, 2013

My name is Robina Wahl, and I am a military wife and a veteran. Although I am fairly new to the Military Saves Campaign, the message to “Build Wealth, Not Debt” reassured me that my husband and I were on the right track and doing the right things.

I have always been pretty responsible when it comes to saving and living within my means, but I was not prepared for the unpredictable employment lifestyle of being a Reservist and military spouse.