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 Guest Blogger | March 25, 2014

    #Save #money monthly through an automatic transfer from checking to savings using #myPay   

Saver Stories View all »

Regular Savings is the Key to Success

Written by Super User | November 26, 2010

My name is Chris Strong. I joined the Air Force on 25 March, 1985. On that day, my financial life changed forever. I was introduced to saving bonds in Basic Training. Savings bonds were the big thing back then just like the Thrift Savings Plan is today. A Colonel gave us a briefing. I cannot remember his name but I can remember the 100 savings bonds he had posted to a piece of card board. He gave us a speech on the importance of saving money and how it can change your life. He inspired me to save.


A Plan for Success

Written by Super User | April 26, 2012

I’m Staff Sergeant Robert Zuniga and I have been an active duty Air Force medic for eight years. I plan on staying in long enough so that I can retire at 20 years. I have always been interested in personal finance and would like to share how it IS possible for me and my stay-at-home wife and two kids to not only save and invest a ton of money but also have a lot of responsible fun as well on 'low' enlisted pay. You CAN do it too!

First off, we write down our goals and separate wants from needs.


Naval Battalion's Effort Yields Team Success

Written by Super User | November 26, 2010

Construction Battalion Five, DETAIL CHINHAE would like to share our campaign success story with you!

Currently we have 23 members on our Det, (all of whom have registered with militarysaves) and out of them 16 are planning for retirement by saving and investing money in the Federal Thrift Savings Plan.