How to Get Your Finances in Order after Military Service
Tuesday, September 29, 2015, 6:00 AM | Leave Comment
In some ways, military life protects individuals from the rigors of civilian life. Costs on the outside are often more expensive than in the military for a number of items. In addition, many members of the military have a tendency of living it up on their off time. This means a lot of money is being spent, rather than being saved.
When these individuals get out of the military, they find that they are facing a financial burden well beyond what they are used to enduring.
For those who find themselves in this situation, here are a few tips to help lighten the blow and help them get their finances in shape.
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Working More Than One Job
According to Fortune.com, people leaving the military have lots of skills to bring to the civilian workplace.
After leaving the military, it is sometimes necessary for people to work more than one job to build their finances. With two incomes, this makes it possible to put one income away into savings and live off the other income.
Trying to get your pay staggered, so that you get paid each week, rather than every other week, also helps to ensure a more functional rate of cash flow.
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Get Someone Else to Rent with You
Planning to rent an apartment or house with someone else makes it possible to cut monthly rental costs. This in turn will free up additional money for savings or paying down debt. This type of living arrangement can also cut electric, water, internet, cable, and food costs too.
If a person lives close to public transportation, this will make it possible to function without needing to spend money on a car, gas, and car insurance while improving one’s finances after leaving the military.
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Improving Credit
Another key aspect to developing a solid financial situation is to improve one’s credit.
People with good credit generally have better access to financial resources that people with bad credit cannot leverage in their favor.
People with good credit also pay less for car insurance and get better loan terms when borrowing money. Paying down debt and using a credit union are two easy ways to improve a person’s credit score.
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Get a VA Loan
If you are building a family and looking to buy a home, you need to know about all the benefits of VA home loans. This federal program allows military members to purchase a home without Private Mortgage Insurance or large down payments.
According to Low VA Rates, military service members can get home loan interest rates at as much as 2% lower than a typical loan. VA loans are a terrific program to get our proud military members into homes.
If a person is reaching the end of their military career, now is the time to begin thinking about their financial situation. The earlier they start preparing for this transition, the easier and more financially stable they will be when it happens.
Getting in the habit of saving, before one leaves the military, will inevitably ensure a smoother transition into civilian life. But, even if becoming a civilian makes for a difficult financial future, taking steps to improve one’s finances is always a good decision to make to avoid financial hardship down the road.
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