Many military members proudly serving this Country will
return home deep in debt. Payday loans are the solution
that many in the military have turned to. These lenders
have been conveniently positioned by military bases to give
them easy access to quick cash with sky high interest rates.
Financial education - a skill young people desperately need
- isn't taught in high schools. So for many military
personnel, they enter the military without any knowledge on
how to handle their finances. This can lead to financial
problems and military debt since it's the first time many
of them have to make financial decisions for themselves.
This lack of financial education is evident in a recent
Associated Press report stating that thousands of U.S.
troops are being banned from serving overseas because they
are deep in debt. Because of this high level of debt they
are considered security risks. On top of that, many
unscrupulous payday lenders are taking unfair advantage of
many members of the military by charging them fees and
interest rates that make it almost impossible for them to
get out of the hole.
You can become financially secure in the military with some
simple steps. The tips below will put you on the path to
financial freedom.
1. Cut your expenses. To afford the items you would like
to purchase, start by listing everything that you want to
buy in the order you want to buy them. This will help you
focus your spending on the things you want the most.
To avoid wasting money, keep track of your daily expenses
for a month. Write down everything you purchase for a
month and see where your money goes. If you're spending
four dollars on a cup of coffee during the week that adds
up to more that $1,000 a year. It's a great way to find out
what small daily purchases add up to big expense.
Develop a military budget by writing down your take home
pay and listing your current expenses. If you're spending
more than you make, it's time to cut those expenses or work
extra hard to get that promotion.
2. Develop a military savings plan. The average American
spends more than they earn, so become a money rebel and
save money. With a simple investment plan, just by saving
$250 a month starting at age 18, you could reach
millionaire status by age 40.
Get in the habit of paying yourself first. Have your bank
automatically transfer a portion of your money from a
checking account to a savings account or start an allotment
directly to your savings account. Each time you deposit
your paycheck, money is automatically transferred into your
savings before you have a chance to spend it. That way
you'll have military money set aside for the long-term and
available for the things you want to buy now.
Many of you are serving the country overseas now in hostile
territory and earning hostile fire and imminent danger pay.
This could be a great way to save more military money.
Take advantage of the military programs such as TSP (Thrift
Savings Plan) and SDP (Savings Deposit Program) that allow
you to save military money and earn a higher return when
compared with most civilian savings accounts. By simply
setting that military money aside, it will help you to have
money in the bank and a way to treat yourself when your
return for a job well done.
3. Have Uncle Sam pay for your house. The military offers
many benefits that will allow you to become a homeowner.
VA loans allow you to borrow 100% of the purchase price
which means you won't need money for a down payment in most
cases. Combine that with BAH (Basic Allowance for Housing)
for civilian housing and you can have your mortgage
payments paid for.
This is a huge benefit because you purchase a $100,000 home
your property could be valued at over $570,000 in 30 years.
The best part is using BAH you could of not even made a
payment with your own money.
4. Invest in yourself. The military offers education
benefits through the G.I. Bill, VEAP (Veterans Educational
Assistance Program), LRP (Loan Repayment Programs) and TA
(Tuition Assistance) may all help you to get a higher
education. Just like in the civilian world the higher
education you receive the more likely you are to get
promoted and paid more.
You defend this country to protect the freedom of all
American's; and you deserve to be financially free to live
the lifestyle you want without having to worry about
military debt. The tips above will help you avoid the
shackles of life long debt and put you on the road to
financial freedom.
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Give yourself the freedom that you deserve by learning the
simple military money lessons that will help you afford
what you want now and secure your financial future. Visit
Vince Shorb's, 'Financially Free By 30' site now for free
video lessons. Go to http://www.FreeBy30.com
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