Saving For The Unexpected As a Military Family Isn’t Just For Emergencies
When you’re living paycheck to paycheck, struggling financially, and likely living off of one income as a military family, the concept of saving such a large amount seems impossible. Add to that the reasons often given to save are negative — your car breaks down, you get PCS orders for the second time in two years, an appliance needs to be replaced, or there’s a family emergency back home, meaning you need to take emergency leave and travel — and it’s hard to stay motivated.
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Written by Breanna Johnston, AFC® Candidate and Amelia Simons, Communications Coordinator at America Saves.
Saving For The Unexpected As A Military Family Isn’t Just For Emergencies
Everyone can agree that having emergency savings for a rainy day is ideal, right? Personal finance experts have preached the importance of having three to six months of living expenses put aside for emergencies.
When you’re living paycheck to paycheck, struggling financially, and likely living off of one income as a military family, the concept of saving such a large amount seems impossible. Add to that the reasons often given to save are negative — your car breaks down, you get PCS orders for the second time in two years, an appliance needs to be replaced, or there’s a family emergency back home, meaning you need to take emergency leave and travel — and it’s hard to stay motivated.
But here’s something not discussed as often: saving for the unexpected positions you take advantage of OPPORTUNITY.
Let’s say that you have been saving $20 every pay period for the past year. A fellow service member calls you to share that they just got a promotion, or ranked up, and would love to celebrate with dinner at a nearby restaurant. You’re excited for your fellow service member and want to go, and because you have money in your savings, you can pull $50 out to attend. Because you chose to save, you could participate in that unexpected opportunity!
If saving for an emergency has been a struggle for you, would it be easier to reframe saving for emergencies to saving for opportunities?
We think so and invite you to create your own “Opportunity Fund.” Whether you’re saving for emergencies, opportunities, or (hopefully) both, the easiest and most effective way to save is automatic. Saving automatically allows you to “set it and forget it.”
We’ve all heard the mantra to pay yourself first, and you can do this easily by setting up a split deposit, directing a portion of your paycheck into savings. No matter how you choose to save automatically, or how MUCH you’re saving automatically (remember, by only saving $20 per month you were granted the opportunity to attend a friends promotion celebration), the most important thing is building the habit of saving — realizing that there is no amount too small to save.
If you’re ready to start your savings journey but not sure where to begin, check out “How to Start Saving for Emergencies.” Then take the Military Saves Pledge and choose emergency savings as a savings goal. Let us be your savings accountability partner (or battle buddy, shipmate, or wingmen if that resonates more with you). We’ll hold you accountable by sending you tips, tools, and resources to help encourage you to stay on track.
Are you trying to save money? Let Military Saves help you reach your savings and debt reduction goals. It all starts when you make a commitment to yourself to save. Take the first step today and take the Military Saves pledge to save money, reduce debt, and build wealth over time. And it doesn’t stop there. Military Saves will keep you motivated with information, advice, tips, and reminders to help you reach your savings goal. Think of us as your own personal support system.