As we flip the calendar page to a new year, many of us are thinking about typical resolutions, such as losing weight, advancing in our careers, or maybe finally tackling that mess in the garage...but what if this year, we focused on something that impacts every part of our lives: our money habits?
For military members and their families, financial readiness isn’t just a good thing...it’s mission-critical. Whether active duty, a reservist, or a military spouse managing the home front, building strong financial habits can bring peace of mind and long-term security.
Let’s kick off the new year with money moves that matter:
1. Revisit Your Financial Mission
Every mission has a clear objective. So should your finances. Start with these questions:
- Where are we now? What assets do we have? Who do we owe? Take stock of your situation by listing what you own and what you owe. This is your starting point.
- Where do we want to go? What are our plans and goals?
- What are our short-term goals? (e.g., paying off a credit card, building an emergency fund)
- What are our long-term goals? (e.g., buying a home, saving for kids’ education, retirement)
Write them down. Make them visible, and revisit them monthly. Remember, if it’s not being tracked, it’s not being done!
2. Map Your Money
Once you know where you are and where you want to go, you can then make a roadmap for your money. Think of your budget or spending plan as your financial map. If you haven’t updated it in a while (or at all!), now’s the time. Here are some action steps to begin with:
- Track your spending for the past 3 months.
- Identify leaks (subscriptions, impulse purchases, dining out).
- Adjust based on your current duty station, COLA, pay raise, or deployment status.
Pro Tip: There are many great budgeting apps available, but old-fashioned tools like a pencil and paper or a spreadsheet can also work well, especially if you’re just starting to budget and track your expenses.
3. Maximize Military Benefits
You’ve earned them, use them!
- TSP (Thrift Savings Plan): Increase your contributions, especially if you’re receiving matching funds under BRS.
- SGLI/FSGLI/VGLI: Review your life insurance needs and coverage.
- Education Benefits: Explore the GI Bill or MyCAA for spouses.
- On-base Resources: Many installations offer free financial counseling and estate planning. MWR offers free and low-cost recreational opportunities that will stretch your fun budget. Shop the Commissary to save on groceries, and the Exchange to save on sales tax.
4. Build a Deployment-Proof Emergency Fund
Deployments, PCS moves, and unexpected expenses are part of military life. Aim to save 3–6 months of expenses in a separate account. Even $50/month adds up over time.
5. Tackle Debt Strategically
If debt is weighing you down, make a plan to pay it off:
- Use the snowball method (smallest to largest) or avalanche method (highest interest first). Refer to my Tactical Debt Elimination blog for details on how each approach works and how to implement it.
- Consider the Servicemembers Civil Relief Act (SCRA) for interest rate reductions for debts brought with you onto active duty.
- Familiarize yourself with the Military Lending Act. Federal law offers protection for the military community.
- Avoid payday loans—military-friendly credit unions often offer better alternatives.
6. Involve the Whole Family
Money habits are stronger when everyone’s on board:
- Set family savings goals (e.g., vacation fund, new car).
- Teach kids about money with age-appropriate lessons.
- Celebrate wins together with an appropriate reward. Credit card paid off? That’s pizza night!
7. Schedule a Financial Check-In
Make It a Tradition: once a month, sit down, and review your finances. Celebrate progress, adjust goals, and stay aligned as a team.
Military life is full of transitions, but your financial future doesn’t have to be uncertain. By building strong money habits now, you’re not just preparing for your next military adventure; you’re laying the foundation for lifelong financial freedom.
So, here’s to a new year, a new mindset, and a mission-ready money plan. You’ve got this!
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