Financial Tips for New Joiners in the Military

Exiting high-school to take on new life challenges can, at times, be scary, especially if you’re thinking of pursuing up a training-heavy career like the military. And although you get to learn a lot in the service while also extracting medical benefits, the financial aspect can be slightly rough to deal with.

Read – How to Manage Finances if You’re a Student

MHS Home | If you join the military right out of high-school, you might not know how to manage your finances

Wait; we don’t mean you’re not paid well in the military. You’re paid adequately, but often when you’re that young, managing your earnings and your overall finances can get tricky. So, if you’re fresh in the military or planning on becoming a veteran, the following things will always help you get your finances together.

Understand the difference between essentials and investments

One of the basic thumb rules to follow is – know what you simply cannot do without. When you start filtering out essentials and luxuries, you’ll have a list of stuff that you absolutely need to have. Then, from the essentials, sort out the things that you can regard as investments. For example, groceries are single-use things; you can’t reuse them after they run out, right? But when it comes to kitchen appliances like a coffee maker, with it you might not only be able to save on your trips to Starbucks, but you can also sell it when you want. See the thin line there?

Consider whether or not you need an accountant

You might be tempted to hire an accountant to manage your finances, but you should know what you’re hiring them for. If all you need them to do is maintain a record of your expenses, you might easily be able to do that yourself with a spreadsheet! That said, if you need help with understanding taxes or govt financial schemes with respect to the military, you can of course hire an accountant.

Military OneSource | Record your expenses through spreadsheets and find loopholes you can fix

Fix your deposits

Try saving strategies like maintaining a cash deposit account. You could put aside 10% of your monthly income and then invest it together at the end of the year. But remember to make the deposit in a high-interest bank account. If you have multiple such deposit accounts, after a couple of years you’ll have a substantial amount to buy a house or make some other huge investment.

Read – Best Checking Accounts for Military Members

Stay away from the ‘Credit’ trap

Quite often, people will try to use words like ‘benefits’ or ‘perks’ to lure you into the world of credit, but before stepping into the zone, ask yourself if you’re really ready. If you consider yourself mature enough to not give into impulsive buying, you may consider it. Also, before taking the plunge, make sure you’ve assessed your expenditure patterns thoroughly. Then if you’re ready, credit will actually help you boost your financial skills and exercise more caution around your finances.

DVIDS | Don’t start using credit unless you know what you’re getting into

To Conclude

Do you know what’s great about the tips given above? The fact that they’re not limited to people in the military. If you’ve just stepped out of high-school and are looking for career opportunities, you can use these pointers to run smoothly on finances.