During the government shutdown, no-military-pay scare earlier this month, it became even more apparent how many military families are stretched thin financially and living paycheck-to-paycheck. Folks, this is no way to live! I know that there are many of you out there who will say, “We can’t save” or “We don’t make enough!” I’m going to make myself very unpopular here and say this: If one member of your family is in the military, even as an E-1, you are already so far ahead of most of the U.S. Please, please, take advantage of a steady income, including a housing allowance, and medical insurance, to set yourself up for a financially successful future.
“But…”
Yes, I’ve heard it. I’ve been there. Paycheck-to-paycheck is no way to live, so you’ve got to figure out a way to get past this, and I will try to help you if you will let me.
I’m going to do a 10 part series on the very basic steps of getting a hold of your financial situation. If you are like the thousands of military families who have no idea where to start, then join us on this journey. If your no longer stretched thin, but want to improve things for the future, then join us, too. I’m going to be doing each of these steps with you, too – basics are ALWAYS good. None of this stuff is rocket science, but there are multiple ways to look at each step. I’m thinking a week per step – that brings us to right before the 4th of July: Independence Day!
- Assess your current situation
- Identify out your goals, your dreams, and what motivates you
- Figure out where your money is currently going
- Make a plan for where you WANT your money to go in the future
- Start saving – even a little bit helps
- Build a solid foundation: insurance and legal documents
- Decrease your living expenses
- Increase your income
- Reduce your indebtedness
- Stay on track and enjoy the benefits!
I’m hoping that lots of people will join us on this plan to get ourselves headed in the right direction. In just a few short weeks, you could lay the groundwork for a much improved financial future!
I completely agree with you! So many people don't make priorities or the priorities they have are all wrong. We don't need new, expensive vehicles, 400 TV channels and the newest cell phones. We have cut back on things. Our last PCS didn't let us ship our vehicles. We bought 2 cars when we got here, but each were $1K. We didn't want more car payments. They suck too much money out of your account each month. We have a little ways to go before we get where we want, but we are headed in the right direction!
I have a question regarding BAH, I'm new to the military spouse thing and I moved from my home state where everything was much cheaper to join my husband and keep our family together(we have three children), my children and I are most likely moving back home soon, do you know where I can find out if we still get bah if we don't live with my husband, I've heard a lot of hearsay about the spouse living in another state and the servicemember receives the bah for where the spouse and dependents live, just wondering if anyone can point me in the direction of where I could find the facts? thank you.
Navywife, Generally speaking, a service member receives BAH for the location at which he or she is stationed. There are situations where a service member can receive BAH for the dependent's location but that is an exception and occurs in situations such as an individual augmentee (IA) assignment or an unaccompanied tour.
If you choose to move back home, you will need to maintain two separate households on that same BAH payment. Your husband will (most likely) not be able to live in the barracks as you are not permitted to receive BAH and also live in the barracks. Again, there are exceptions where a commander will permit a geographical bachelor (a married service member whose family is not living with them) to live in the barracks without giving up their BAH but they are becoming more and more uncommon.
I'm not trying to discourage you from moving home, but be aware that the costs of the move will be your responsibility. Any travel for you to see each other will be your responsibility, and you will have to maintain two homes. Generally speaking, it is significantly more expensive to live apart, plus there is the added stress of not being together. I understand the desire to go home but please think this through very carefully. Many families find this to be a very expensive mistake.
Good luck to you.
This is awesome! I'm glad I came across these articles I would love to get our finances in check, luckily we have no credit card debt or a credit card to really worry about but I would like to start saving for retirement since social security is not looking to promising for my generation! Thank you!