Joining the military is one of the best things that you can do for your future. Not only will you learn a discipline like none other that you can carry on to other places, but you are also setting yourself for financial security. The military is a unique way to save your money and set up a bright future for yourself. Here are some of the best tips for doing so.
Plan Ahead
When you first join the military, you’re spending most of your time training to hold the line. Therefore, you have very little time to spend your money the same as if you were back home making the same salary. It’s important that you plan ahead for where you want to do with this extra cash on hand.
Think about what your long term goals are. When you have an idea of what you’d like to use your money for, then you’ll be less likely to squander it away when you get the opportunity. Plan to set aside specifically for whatever your future plans are. Whether it’s buying a house or starting a business, the military will provide a steady income to finance it.
Set Up a Savings Account
If you don’t have one yet, it’s a good idea to set one up. Setting up a savings account specifically for your future plans will help you maximize your savings. Unlike a regular checking account, a savings account accumulates interest each month. The more that you put away, the more that you get back.
The great news is that military members often get great interest through banks that only offer banking to military members and their families.
Create a Strict Budget
Setting up a budget for yourself is the best way to encourage yourself to follow through with your savings plans. A budget encourages you to discipline your spending habits so that you prioritize the important things in your life.
People who don’t have a budget often find themselves at the end of the month having overspent in some areas and not being able to cover all of their bills.
When creating a budget, make sure to include every single thing you spend money on each month. Nothing is too small to include in your budget. In fact, it’s often the little things that end up adding up the most.
Invest
While having a savings account is a great way to save money, there are other ways too. Investing your money in something like the stock market can boost your savings potential, even more, bringing you even closer to your savings goals. By putting these tips to use and staying focused, you can put away a significant amount of savings while serving in the military.
