Do you want to manage finances as a veteran?
If you qualify for retirement after years of continuous service, you might want to grab the opportunity. Regardless of your reason, it doesn’t mean your bills will stop.
Before you retire, consider focusing on financial management. It ensures you and your family avoid financial ruin. If you have no idea where to begin, continue reading our financial planning tips today:
1.Consider Joining Financial Programs
If you want to become financially successful, look for financial programs. You can use the military version of a 401(k) called the Thrift Savings Plan. It’s an easy and convenient method to save for your future.
Unfortunately, only 40% of American personnel take advantage of this program. If you haven’t yet, consider signing up as soon as possible.
Another method to stabilize your finances is to leverage the military pay system. Your military service has yearly and time-in-service pay raise opportunities.
2.Delay Homeownership
When you’re in the military, use a long-term homeownership approach. It might seem counterintuitive, but renting and saving while in service is better. It ensures buying a home after retiring is less stressful.
Picking this choice is hard since owning a house is part of the American dream. However, it makes more sense for you to buy a home later. It ensures you’ll maximize your time within your house.
3.Avoid Financial Management During Deployments
Financial management is more of a hassle when you’re overseas. If you’re in a combat zone, juggling between bill payments, savings contributions, and investments can be draining.
Avoid this by using financial counselling services. Most bases offer these for free. Never wait until you fall into a financial mess.
Another method is to ask for financial help from someone at home. This person must be trustworthy, like your spouse or family member. They can be your eyes and ears, allowing you to focus on your tasks.
4.Take Financial Education Courses
Most military members and veterans lack relevant financial knowledge. On average, high schools and colleges focus on courses leading to a degree. It means neglecting life skills.
Avoid this by learning about financial terminologies. It allows you to make a realistic plan. As a result, you’re more confident about your financial future.
5.Avoid Predatory Payday Loans
When transitioning to civilian life, you’ll encounter lots of problems. Lack of employment and medical needs can lead you to ask for financial assistance. Regardless, avoid predatory payday loans since they have inflated interest rates.
Instead, look for more reputable long-term lenders. For example, consider VA loans once you decide to get a house. Check out this post for more information about joint VA loans.
Discover More Financial Planning Tips Now
These are some financial planning tips for veterans. Never let your lack of time or knowledge hinder your future stability. Use these to ensure a worry-free retirement.
However, making the most out of your finances is easier with an advisor. Did you find this guide helpful? If so, consider reading our other posts today.