National Military Saves Week
I had no idea this existed, but it couldn’t have come at a more convenient time. Last week, we got our tax refund (which is already spent) and paid off some bills. We are now almost completely debt free and it feels good. This week is National Military Saves Week. I’ll let LTG Robert Cone tell you what it is, but first I want to tell you how we’ve managed to get out of debt.
When I first joined the Army, my TAKE HOME pay was a little less than $300 every two weeks. With this nearly $600 each month, I had to pay a car payment, insurance, gas, and food. My wife and I were newly married and she became pregnant immediately. With a baby on the way, all we had to live off of was ramen and spaghetti for a LONG time.
We made a bunch of stupid decisions beginning with the decision to purchase a brand new vehicle (Suzuki Esteem) instead of finding a cheap used one. When our family grew, we tried to trade into a bigger car (Suzuki Esteem Wagon) but owed more money than it was worth and ended up added that cost to the new vehicle. Things went downhill from there. We (meaning me most of the time) ended up charging a lot of stuff and digging ourselves into debt. Fingerhut owned us and Sears wouldn’t stop calling.
After about five years of almost unmanageable debt, I started working with our creditors to get out of debt. We began by convincing the credit card companies it was in their best interest to lower our interest rates so we could pay the cards off as opposed to just filing bankruptcy. Filing, of course, would have ruined my security clearance and there was no way I was going to do that but they didn’t know that.
Once rates were lowered, we targeted our smallest bill and made minimum payments on everything else until that bill was paid off. Then, we took the money we WERE paying each month on that bill and applied it to the next bill ON TOP OF the minimum payment. Once that one was paid off, we rolled that monthly payment to the next and so on. We got to a point where we were literally paying $600 a month on ONE bill with a minimum payment of about $20. The snowball effect of such a tactic is amazing!
On top of this, we continued to pay our tithing, which according to biblical scripture is 10%. We did so regardless of our financial situation and I believe we were blessed because of it. We are now almost completely debt free from unsecured debt. We still – for just a few more months – owe on our cars and still have house payments, of course. It’s taken us less than five years to get rid of more than ten years of debt this way.
Now to the point of National Military Saves Week. This is from LTG Robert Cone, III Corps and Fort Hood commanding general.
As Soldiers, you work very hard for your money, and most of the time it never seems like you have enough. How many times have you looked around at the end of each month and asked yourself where did it go? Every month you pay your utility bills, car payments, insurance premiums, rent or home mortgage and credit cards bills, BUT are you paying yourself?
If you’ve ever been to a financial planning seminar the advice they always tell you up front is to “pay yourself first.”
Next week, February 21-28, is “National Military Saves Week.” Military Saves is a national campaign to persuade, motivate and encourage military families to save money every month, and to convince leaders and organizations to be aggressive in promoting automatic savings.
One of the main secrets to accumulating wealth, and more importantly financial stability and security in the long term, is consistent action over time. These actions include setting financial goals; creating, and sticking to, a budget; consolidating and paying down debt; and saving and/or investing your hard earned money.
One of the easiest and best ways to save money is to set up an automatic bank draft. By having a set amount of money deposited into a savings account each month you are effectively “paying yourself first.” Start out small and be realistic with your needs and goals. Look for ways to cut back on your spending and take personal responsibility for your financial future.
You can start right now by taking the Saver Pledge: “I will help myself by saving money, reducing debt, and building wealth over time. I will help my family and my country by encouraging other Americans to build wealth, not debt.”
There are a whole host of resources available here on Fort Hood to help you on your way to financial readiness and future wealth. From your unit command financial noncommissioned officer to the Personal Financial Assistance Center, located in the Resiliency Campus, professionals are standing by to help.
The Army Community Service Financial Readiness Branch offers classes about credit, savings, investing, home buying, banking, budgeting/debt management, insurance and consumer awareness/identity theft.
Financial readiness is a personal obligation for every Soldier. You cannot effectively focus on your mission if you are worried about finances and debt. Take charge of your fiscal future by taking advantage of these resources and developing healthy money management habits and routines.
I personally encourage all of you to begin saving this week and make it a lifelong commitment. Good luck on your quest to build wealth, eliminate debt, and achieve financial independence.
Pay Yourself First. Phantom Warriors!
harold ayers
February 26th, 2010 at 9:33 amOh, you are throwing those “Dave Ramsey” snowballs at your bills.
http://www.daveramsey.com/
His “Financial Peace” and “Total Money Makeover” courses are an excellent resource for those who are monetary prone to paying the stupid tax. I wish I had heard about him when I joined the Army, man did I pay that stupid tax and then some.