April is Military Saves Month. This month encourages the military community to save money for the future and to gain financial stability. The Military Savings program, coordinated by the Consumer Federation of America is designed to help service members and their families build wealth and reduce debt. These are some tips that will help you save more and improve your financial security.
Save Automatically
Budgeting can be difficult and time-consuming. Set up automatic transfers from your checking account to your savings account every payday. This will give you the peace of mind that you are saving for the future. Jaspreet Chawla, Navy Federal Credit Union senior vice president savings products, stated that automatic transfers are a great way to save money. For additional dividends, increase the amount of checking account funds that are automatically transferred to savings.
Prioritize the creation of an emergency fund
You don’t need to worry about your budget getting blown out of control if you have a savings net for unexpected expenses. It’s easy to be sure that you are prepared for unexpected expenses such as a car break down, home repairs, or medical costs. Rosemarie Goner, blogger behind the Busy Budgeter, and Army veteran spouse, said that there’s a good possibility you have a lot of stuff in your home. They could also be used to fund your emergency fund. How much money goes into a rainy-day fund? Ideal is to save three to six months of your daily living expenses. It’s best to begin with a modest goal, such $500, and then increase it as you become more proficient at saving.
Save for the Future
When planning your retirement savings strategy, the first thing you should do is find out if your employer offers an 401(k). If your employer offers a 401(k) match, you should allocate as much budget as possible to maximize that benefit. You should also look into any retirement account specials offered by your financial institution. Kevin Driscoll, vice-president of Navy Federal Investment Services said that “investing early can be a key part in a financially secured retirement.” Anyone just starting their savings journey should make sure they are simple and consistent with their contributions, as well as monitor long-term returns.
Savings is possible only if you reduce your debt.
Keep working at it each month. You don’t have to be a pro at planning in order to reduce your debt. Another way to reduce debt is better managing your budget. This will also give you a better understanding of your debt to income ratio. Anne Marie Ferdinando, Navy Federal member outreach manager, said that budgets should be reviewed regularly to ensure they are realistic for your family. Make a list of your assets and then write them down: what is in your bank accounts or retirement accounts? What about your investment accounts? Next, take stock of your debts, such as student loans, credit cards, car loans, mortgages, and credit cards. You can make important projections for the next month by taking stock of your financial situation.
Saving is a Family Affair
It’s a great time to take stock of your future and create a plan for managing your joint finances, such as when you get married or start a family. “I recommend scheduling money dates once per week or once per month [depending how you and/or your spouse handle finances],” Corinne Schmitt, a Marine veteran spouse and creator Wunderman Wannabe. Set aside a time and a day to review your accounts and bills on a regular basis. Financial resilience is about more than just having money. It also involves being aware of your finances, being aware of resources available and willing to look for opportunities to support your financial well-being. It is possible to improve your savings every day.
Don’t wait Start Saving Right Now!
Use Military Saves Month to pledge to start a long-term process of saving a little more each month. Navy Federal has a list of money-saving tips that you can use to improve your family’s life.