2021 Military Money Guide

GUIDE

TIPS

DECREASE YOUR GROCERY BILL

TOP SIDE GIGS

MILITARY TRANSITION & YOUR MONEY

POWERED BY AMERIFORCE MEDIA

Money was always a pain point for my household as my husband worked the ranks as a Marine. Truth be told, as a young enlisted couple we had little experience with things like budgeting and money management. It also didn’t help that most creditors outside the gates were throwing themselves at us.

When we would get into a jam, we would get a payday advance — sometimes at a rate of 40% interest! Instead of saving for things we wanted, we took out personal loans with little understanding of interest rates. To compound those issues, with every PCS move I was facing the ever-elusive battle for gainful employment. We would settle in at a duty station, build a budget off two incomes, then moving would throw things into a whirlwind when I couldn’t find enough income to supplement an old job.

Most of our military life experience was living paycheck to paycheck (or worse), and it created great strains on our marriage and quality of life. This guide was built with some of those experiences in mind. The hope is you can learn from my mistakes and improve your situation proactively. I have found financial advice to fall on deaf ears in the past because it wasn’t reasonable. For example, who can save three to six months of money for an emergency fund when they are worried about getting groceries for the week?

The 2021 Military Money Guide was written from the perspective of those with military life expertise because we want to offer realistic advice. Fixing finances isn’t an overnight feat but looking back I do wish I had taken some steps to ease the hardship. A new year is a good time to take stock of areas to improve on, including your money.

Crystal Kupper

Lacey Langford

Andrea Downing Peck

Jessica

Kate Horrell

Stacy Huisman

Manfre

contributors

Andrea Downing Peck — SPONSORED

by Crystal Kupper

by Kate Horrell

Financial readiness resources for military families

If you’ve hit a financial hardship, need educational resources or you’re about to undertake a large financial obligation, we’ve collected these resources specifically geared towards the military community to help you and your family.

Military One Source is a leader in providing free confidential help to service members, immediate family members and, in some cases, Department of Defense civilians. Their financial services include tax consultation and filing services, health and wellness coaching and financial counseling. More information can be found at www.militaryonesource.mil or by calling (800) 342-9647.

MilSpouse Money Mission provides free financial resources for military spouses. Their site, vetted by the Department of Defense Office of Financial Readiness, offers blogs, videos, financial calculators and Spanish resources designed to educate and empower. More information can be found at https:// www.milspousemoneymission.org.

Military Saves, a component of America Saves, and a participant in the Department of Defense Financial Readiness Network seeks to motivate, support and encourage military families to save money, reduce debt and build wealth. More information can be found at https://militarysaves. org.

MilCents is a social learning program created to empower military families in personal finance through free resources, online events and conversations with peers and experts. More information can be found at https://militaryfamilyadvisorynetwork. org/milcents.

Operation Homefront is a national nonprofit dedicated to building strong, stable and secure military families. They offer critical financial assistance and transitional housing programs, permanent housing and caregiver support services and recurring family support programs. More information can be found at https://www.operationhomefront.org or by calling (210) 659-7756.

Veterans of Foreign Wars offers financial grants through their unmet needs program, designed to help America’s military families who have run into unexpected financial difficulties as a result of deployment or other military-related activity or injury. The program provides financial aid grants of up to $1,500 to assist with basic life needs in the form of a grant so no repayment is required. To further ease the burden, VFW pays the creditor directly. For more information, visit: https://www.vfw.org/assistance/ financial-grants.

USA Cares is provides financial and advocacy assistance to post9/11 active duty US military service personnel, veterans and their families. Their services work to improve quality of life and to reduce potential factors that contribute to veteran suicide. For more information, visit: https:// usacares.org.

The American Red Cross works in partnership with military aid societies to provide quality, reliable financial assistance to eligible applicants 24/7/365. Assistance can include funds for emergency travel, burial of a loved one, emergency food and shelter, etc. More information can be found https://www.redcross. org/get-help/military-families/ financial-assistance.html or by calling (877) 272-7337.

The Air Force Aid Society is the official charity of the U.S. Air Force and has been meeting the unique needs of airmen by providing emergency financial assistance, educational support and community programs. More information can be found https://afas.org or by calling (703) 972-2650.

Army Emergency Relief offers zerointerest loans, grants and educational scholarships for Army families. More information can be found at https:// www.armyemergencyrelief.org or by calling 866-878-6378.

Navy-Marine Corps Relief Society provides financial, educational and other assistance to members of the Naval Service of the United States, eligible family members, and survivors when in need. More information can be found at https://www.nmcrs.org or by calling (800) 654-8364.

The Coast Guard Mutual Assistance empowers families to meet their future financial challenges by promoting financial stability and education. They offer counseling, short-term interestfree loans, financial grants, referrals

WAYS TO ON YOUR 6

SAVE GROCERY BILL

BY STACY ALLSBROOK-HUISMAN

Staying within a budget when grocery shopping seems easy on paper, but it’s difficult to master without a little help.

Grocery prices have exploded over the past year due to unforeseen impacts of the COVID-19 pandemic and disruption of supply chains. AmeriForce Media crowdsourced more than 300 experienced military spouses for their best tips and habits that help their family stay on budget.

The six best tried and true ways military families can save on their grocery bill are:

Meal plan

The simplest and most effective way to save money on groceries is to plan ahead.

Planning meals in advance allows you to buy once and use the ingredient many times. Buying one protein in bulk saves money and keeps meals simple.

For a small price, The Fresh 20 provides healthy meal options, while Mealime is a free and easy-to-use service that saves money on the first shopping trip.

When planning meals, don’t forget about incorporating leftovers, nonmeat meals and “on-your-own” nights for large families. Plus, there’s nothing wrong with breakfast for dinner.

Coupons – but be wary Coupons can save money, but awareness is key.

No one needs five jars of mayo, so walk away from the condiment aisle and throw away the coupon. Instead, look for coupons bundled in newspapers from large product companies like Procter & Gamble or General Mills.

Most coupons from big brands are for everyday items and offer significant savings. In-store apps from Target, like Cartwheel, or loyalty programs from local grocery

chains also offer big savings.

Aldi and Lidl

Those who have been stationed in Europe, know discount grocery stores like Aldi and Lidl.

Shoppers can find produce and protein at significantly discounted prices. Buyers can’t be picky or expect name brands, but if a family needs to replenish fruits, vegetables, dairy or meats, shopping at Aldi or Lidl will save hundreds of dollars per month.

Remember to bring your own bags and a quarter for the cart. And be prepared to bag everything yourself at sprinter pace.

Cash is king

Shoppers are forced to stay on budget and shop from their list when cash is the only way to pay.

Just practicing cash-only grocery shopping for three months can help build your savings or pay down debt. It’s an old school way to shop, but the benefits are important for a modern family.

The commissary

Shoppers can save on brand name items, case lot sales and shop with coupons at the commissary. But to really save, plan ahead. DeCA posts all of its sale items categorized by store on its website. Log on before you leave to hunt for the best prices.

There’s an app for that Several apps offer shoppers instant savings and cash back. Ibotta and Fetch, for example, will help you save hundreds of dollars per year on everyday items.

TO MASTER YOUR MONEY FINANCE TIPS PERSONAL

BY ANDREA DOWNING PECK — SPONSORED

Spend less than you earn is a common answer to the question of how to achieve financial security. If only personal finance was that simple for service members. Frequent moves and deployments, military spouse underemployment, and sky-rocketing childcare costs can add layers of uncertainty to a military family’s budget.

Navy Federal Credit Union Outreach Manager Anne Marie Ferdinando, whose family’s military service spans four generations, believes saving money is a key to achieving financial independence, but represents only one step on the road to mastering money. After more than 30 years in the financial services industry – 20 of which have been with Navy Federal, Ferdinando also understands saving is difficult if living paycheck to paycheck.

“The important thing is to start small. Just save something,” she said. “A few dollars here and there. Every little bit counts. And

then, if any unexpected expenses come up, you’ll have savings to cover them instead of going into debt.”

While the word “budget” causes a four-letter word response from many people, Ferdinando maintains tracking expenses versus income can uncover money that can be earmarked for an emergency fund.

“We live in a society where we use a lot of [credit] cards,” she said. “We see something we need and we swipe away. But putting [expenses] down on paper will help you build a solid financial plan that’s going to allow you to build a

stronger financial future.”

Once you find $20, $50, $100 or more per month that can go toward building savings, Ferdinando suggests setting up an automatic bank transfer to a savings account or retirement fund. Establishing a “pay yourself first” habit will help to develop a “savings mentality,” she said.

While interest rates remain historically low, Ferdinando points out that memberowned credit unions tend to offer the best rates of return on savings products such as savings accounts, money market accounts, and share certificates.

In

Anne Marie Ferdinando

addition, Navy Federal Investment Services, a Navy Federal subsidiary, offers low-cost, online stock trading accounts, portfolio management, life insurance, and trust and estate services.

When starting to save for retirement, she recommends looking no further than the military’s Thrift Savings Plan. She says service members should maximize the Blended Retirement System’s matching TSP contributions rule, which matches dollar

for dollar the first 3% contributed while the next 2% is matched 50 cents on the dollar.

“It’s literally free money,” Ferdinando explains. “So, put some of your money into that plan. It’s a wellmanaged plan and a great tool to see some future growth.”

She adds contributing to a Spousal IRA also can build retirement savings for spouses whose own job opportunities may be limited by frequent moves.

Here are other money tips:

• Organize debts based on interest rates and pay down the highestinterest-rate debt first.

• Consider every pay raise (promotion, years of service, or annual) an opportunity to increase TSP contributions by 1% or more.

• Use a compound interest calculator https://www. investor.gov/financialtools-calculators/ calculators/compoundinterest-calculator to learn how savings and investments grow over time.

• Before taking out a loan for a major purchase such as a car use an online affordability calculator from Navy Federal https://www. navyfederal.org/loanscards/auto-loans/ calculators/car-loancalculator.html to understand the cost of borrowing over the life of the loan.

• If facing unexpected bills, spiraling debt or simply seeking tailored advice, contact Navy Federal https:// www.navyfederal. org/resources/familyfinances/personalfinance-counseling. html, Military OneSource https:// www.militaryonesource. mil/confidentialhelp/interactivetools-services/ financial-counseling/ financial-counselingservices-for-a-securefuture/ or a military aid society for personal financial counseling assistance.

With more than 60% of military members under the age of 30, time can be a service member’s greatest wealth-building asset if they begin saving for retirement early in their military careers. But most people have to educate themselves about personal finance topics and strategies since money management is not typically taught in school, Ferdinando points out.

“At Navy Federal, we keep on top of the personal finance trends and we create a lot of informative articles for members online,” she said. “ MakingCents provides all kinds of articles and videos that can help members learn what will make their future plans, their future wants and needs attainable.”

Visit

your

“The important thing is to start small. Just save something.”

Using your VA home loan in a seller’s market

BY JESSICA MANFRE

The housing market has quite literally exploded over the past year, leaving many military families scrambling during PCS season. Tackling home buying in a seller’s market may be challenging, but it isn’t impossible.

Michelle Crumley knows all about Murphy’s Law and the ways of military life.

“Mike joined the Navy in ’89 with the sheer intent of becoming a SEAL and successfully met that milestone a year-and-a-half later when he graduated BUD/s,” she said.

Though they married in 1992 and spent a lot of his career in the Virginia Beach area, Crumley would also experience a move to Alaska.

“This little rock in the middle of the Gulf of Alaska is where my career story really took shape,” Crumley said of entering the mortgage industry. “After buying two homes and still not really understanding the whole mortgage world while receiving misleading or incorrect information on VA financing, I actually entered the industry so I could learn as well as educate the military community around me.”

Crumley took the knowledge and experience she gained to go on to train, educate and ensure military families were equipped

for the home buying experience — even in a seller’s market.

With the country seeing unprecedented surges in home buying, the market is so competitive, sellers are getting multiple cash offers, many of them thousands of dollars over asking price. This has buyers feeling overwhelmed with the process.

“The earlier in the process you learn about financing options, the qualification process and your specific scenarios — then when opportunities present themselves, you are ready to take action quickly,” Crumley said. “It is also important to know yourself, know what you can and are willing to spend, know your have-to-haves versus like-tohaves, and remember you aren’t in Vegas. Don’t get

caught up in the moment and end up with buyer’s remorse when the dust settles.”

For example, Crumley added that in her household her husband is the family’s risk taker, while she prefers to keep her feet firmly planted on the ground. She likens today’s housing market to gambling due to the pressure to find something in the heat of the moment but unknowingly creating a bigger headache in the rush. Starting early and operation planning are key, she said.

“Buyers’ and sellers’ markets ebb and flow, and today we are solidly in a seller’s market. As a buyer, this means when you want to enter the arena, you need to come already locked and loaded,” she explained. “On the mortgage side,

that means interviewing and selecting an expert in military lending; and on the real estate side, that means interviewing and selecting an agent that works closely with the military community. This is your team, and they are there to support you.”

Crumley spends her days as the Military Client and Community Liaison for Caliber Home Loans. This means she is the go-to for veterans and active-duty service members and their families. With her experience as a loan officer and educator, she focuses on ensuring all information is accurate and in the client’s best interest.

Crumley’s advice to the military community on buying in today’s seller’s market remains simple: start early and be ready for anything.

DEBT-FREE LIVING

Planning, dedication lead to FOR MILITARY FAMILIES

BY LACEY LANGFORD, AFC®

If you’re fighting to pay down debt, you’re not alone. The average American has $90,460, according to a 2021 CNBC report, from a range of sources including student loans and mortgages. And, Experian found the overall debt balance grew in the U.S. at the highest rate in 10 years. But the news isn’t all doom and gloom. Military families have proved it is possible to pay down balances by relying on purpose and a plan.

TOTAL DEBT SUCCESS

A home loan is typically the largest debt military families carry. Active-duty Army spouse Vanessa Witts and her husband reached debt success by paying off their $230,000 mortgage in five years.

Paying off a mortgage is no easy task, let alone doing so in five years.

“We wanted the flexibility that came from being debt-free,” Witts said.

They also wanted to free up the money they were spending on mortgage payments to put toward “better-paying investments.”

Angie Kiser, a retired Army veteran, and her active-duty husband paid off $130,000 in debt, including four auto loans totaling $100,000 and a $30,000 adoption loan for their son.

When it came to the adoption loan, Kiser said they didn’t anticipate taking on debt to adopt their son.

“It was a debt we did not expect to have and worked diligently and sacrificed to pay it off early,” she said.

HOW TO PAY OFF DEBT

Hearing the amount of debt they paid off is great, but the real question is, “How did they do it?”

In Kiser’s case, they set goals to cut expenses in order to have more money to put toward debt payments. They only ate out twice per month, and when Tom deployed, all the extra tax savings went to debt payments.

Also, having two incomes gave them additional funds to pay down debt.

“Each time we freed up money from either a car loan or a credit card, that extra ‘bill’ money would go directly on the adoption loan,” Kiser said.

But they also took the extra money they received — no matter how small — to pay off their loans. Money from tax returns and pay raises eventually added up to the total payback of what they had borrowed.

Witts and her husband also used two incomes to their debt advantage.

“Having a dual income has allowed us to meet our financial goals more easily than if we lived on my husband’s salary alone,” she said.

Like Kiser, the Witts also put any additional financial “windfalls,” like extra deployment money, toward their mortgage. They also credited living in low-cost areas like North Carolina to help pay off their mortgage faster because their expenses were lower.

BENEFITS OF PAYING OFF DEBT

For Kiser and Witt, paying off debt came with some added benefits.

Kiser said paying off their adoption loan brought “relief and closure.” And Witt said after selling their home, they were “able to invest the full amount of the sale proceeds” and had money to fund current priorities, like saving for their retirement and children’s education.

Getting out of debt and finding financial success is possible. And it can bring added quality of life benefits. You just have to set the intention, make a plan and stick to it.

TOP SIDE GIGS FOR MILITARY SPOUSES

BY CRYSTAL KUPPER

Military family support organizations have noticed a trend sprouting up since the battle against COVID-19: a growing number of service members and spouses turning to “side gigs” to bolster their finances.

“While the military supports your basic needs, there is no such thing as a rich military family,” said Jaime Chapman, Army Reserve veteran and cofounder and Chief Operating Officer of the Military Spouse Chamber of Commerce. “A working spouse and a dual-income family is almost a requirement in 2021.”

A side gig, or hustle, is either a second job for the military member or one the civilian spouse can complete around their duty station, dependents’ needs, and schedule. It is almost always flexible and often self-started.

“Flexibility is the number-one draw of a side gig. You’re able to work around your family life and full-time jobs to earn additional income when you want to,” said Lacey Langford, Air Force veteran and accredited financial counselor. “With a side gig, you also have the chance to pick one that works best for your life, like driving Uber versus running errands for others.”

Corona created Chapman, whose organization offers military spouse-owned businesses the chance to become “enterprise certified,” said that approximately one-

third of the Military Spouse Chamber’s businesses were created during COVID.

“The pandemic forced a lot of military spouses to take a risk and start the business they’ve always dreamt about,” she said.

Those businesses can get pretty creative, Chapman said, including a woman who designed and sold a better mermaid fin for aquatic performers. She herself has written resumes, taught LinkedIn courses and offered career counseling — all things at which she naturally excelled and could charge for. Langford, meanwhile, has seen everything from a military spouse selling branch-specific art to a nurse becoming certified to give Botox injections on the side, to an active-duty member pressure-washing on the weekends.

Active-duty service members must have their command’s approval before taking on a money-making second job. Thankfully, Langford said, it’s usually easy to get, as long as the side gig doesn’t interfere with the military commitment.

“As long as you’re to duty on time and doing your job, there aren’t problems,” she said. “In some cases, commanders will encourage a side job to help meet your financial obligations when a service member has taken on debt beyond their means.”

Look & leap

Molly Simon is a Marine wife on the West Coast who had always sewn her husband’s uniform chevrons. In 2015, she saw a post on her base’s social media page from a Marine looking for a speedy seamstress. So, she offered her services.

Word of Simon’s stellar work soon spread, and within a year, she was swamped with uniform and ballgown alterations requests. She now sews

out of a storage closet in her home and works as many as 40 hours a week during military ball season.

It’s a perfect set-up for her family, Simon explained.

“I homeschool, so I can’t exactly go get a ‘normal’ job. And if I don’t want to work one week, I just don’t take any appointments.”

Besides flexible scheduling, variety in jobs is another hallmark of side gigs, Langford and Chapman said. Military families can earn extra cash through rideshare programs, freelancing, virtual assistance, online course creation, digital marketing and selling products or services on e-commerce websites such as Etsy and Spousely. A successful side hustle means identifying a need and charging to solve it, whether starting a business from scratch or finding an alreadyestablished company.

Langford has seen her clients make anywhere from $50 to $5,000 a month with their side gigs. She pointed out that what starts “on the side” often grows into an exciting full-time income.

“Now’s an excellent time to consider a side gig because there are many opportunities to find [one],” she said. “COVID has opened the doors to more remote work and working less than part-time hours.”

JAIME CHAPMAN

LACEY LANGFORD

Transition funds vital for exit from military, financial advisor says

BY KATE HORRELL

The Department of Veterans Affairs estimates 200,000 men and women exit the military annually. Like most career shifts, this decision requires additional logistics to make the move as smooth as possible — especially if a relocation is in play.

One important tool for financial planning and preparation is a transition fund. A transition fund is a portion of money set aside to bridge the financial gap between a spending plan based on military pay to a spending plan based on whatever

comes next. Transition funds may be required to pay bills while you look for a new job, make up a shortfall in income while attending college or other training, cover expenses of setting up a new household, or even just pay for a new work wardrobe.

How much money should you save in a transition fund? Every situation is different.

A young, single service member who is debt free, moving home, and plans to use the GI Bill will have different

needs than a family with children and debt. Someone with skills that are easily transferable to the civilian sector will need a different level of financial support than someone who is qualified for very specific and rare job. A veteran earning military retirement pay and/or disability compensation will have instant income when compared to someone leaving after just one enlistment.

A transition fund should be established the same way any other project is approached: one step

at a time. Start saving now, with a small amount from each paycheck deposited into a separate account — at a separate financial institution, if that helps eliminate accessing it. With each promotion, pay raise or change in finances, increase that amount incrementally. If the window of transition is now, buckle down and make this a priority, socking away as much money as possible.

Sean Gillespie is a co-founder of Redeployment Wealth Strategies — a fee-only registered investment advisor firm in Virginia Beach, Virginia, that serves military families. He said “the most important thing about a transition fund is just that you have one.”

Once the money has been saved, it can be tempting to use it for other purposes. Resist the temptation.

Transition funds are less flexible if it’s tied up in investments or have been used to make fixed payments.

“The second most important thing about it is understanding how much of it should be on savings footing, typically in cash, and how much you could maybe have earmarked from an investment account. If you don’t have much margin for error inside the two years immediately after you take the uniform off for the last time, cash is good. That’s not the best time to be worrying about how much everyone else thinks you should be feeding into your investments,” Gillespie said.

In a perfect world, the transition fund wouldn’t have to be touched during the move from military to civilian life. If that happens the funds can be used to pay down debt, beef up emergency funds or save for retirement. But if things get tough, the stash of cash can help smooth out the ride and ultimately reduce stress.

Follow Kate Horrell online for more tips at www.katehorrell.com.

3 SIMPLE STEPS TO IMPROVE YOUR

CREDIT SCORE

BY KATE HORRELL

Credit scores are an indicator of financial health for creditors, but that rating can also have career implications for military members and federal employees because of requirements for security clearances and background checks.

A borrower’s creditworthiness affects a budget’s bottom line too. Credit scores can reduce the amount of interest paid on credit accounts, make it easier to rent a house or apartment, eliminate the need for security deposits when setting up utilities, and keep insurance rates low.

If your credit score is not where you want it to be, there are simple steps that can improve it. Some of these steps may give you a faster increase in score, but the more complex parts take time and consistency. The three areas to focus on are lowering your credit balances, paying consistently on time, and building credit carefully.

“The best way to improve your credit score is to improve areas that weigh most in determining your score — payment history and credit utilization,” said Lacey Langford, AFC®, The Military Money Expert®.

Lowering credit balances

Paying down your debt balances is the fastest way to improve your credit score, according to Langford.

“The amount of money you owe, or your credit utilization rate, is 30% of

your credit score. Carrying a lot of debt negatively impacts your credit.”

Experts recommend keeping your credit utilization rate below 30%. For example, if you have a total credit limit of $5,000 across three credit cards, you will want to have a total balance of no more than $1,500 on those credit cards. However, consumers with the highest credit scores typically have credit utilization rates in the single digits or pay their credit cards in full every month.

Pay on time

Your payment history makes up 35% of your total credit score. While it takes longer to build up an on-time payment history, this is an important piece of the equation.

“Late payments can hurt your credit. Making your payments in full and on time will be the best way to improve your score,” Langford said.

If you tend to miss paying bills due to busyness or disorganization, setting up an automatic payment for the minimum payment can ensure that at least the required amount is paid ontime each month. But be careful not to overdraw your checking account by doing so. You can set up an automatic payment on or quite close to payday to reduce that risk.

One quick fix is to ensure every credit account is current now. While you can’t erase late payments in the past, being

up to date right now is a big step.

Build credit, but carefully

The last two recommendations may seem to conflict with each other, but if executing properly it will enhance a credit score: building credit and limiting new accounts.

A solid credit history requires a payment history, which can’t be built without having some credit. Additionally, a mix of credit types can help boost your score. This may mean you want to open a new account. But you want to be thoughtful and strategic about opening new accounts, opening only what you specifically need for a purpose and not opening new accounts too frequently.

You can build up your credit history using services like Experian Boost, which lets you report payments that aren’t usually reported like cell phone bills or utilities. Another option is SelfLender, which lets you take out a small loan and then automatically repay the loan on time every month. While these tools may help you increase your scores, be sure you understand what you’re paying and getting for these services.

Some of these steps can give you a rapid boost in your credit score, and some will take some time. But either way, you have the power to increase your credit score, which will give you more options as you go through your financial life.

PLANNING

FIRST CHILD FOR YOUR

BY CRYSTAL KUPPER

Birthing classes may teach valuable labor techniques, and family readiness volunteers can help if your spouse is deployed during delivery. But financial and military experts caution against overlooking one crucial aspect of welcoming a new child into the family: money.

“As a parent of three, I have found that there can never be enough financial planning in advance,” said JD Riddle, chief operating officer of a registered investment advisor company on the West Coast. “Nailing down your financial plans as soon as you can will make life that much easier, as decisions made pre-baby may well be better thought-out than one made at 3 a.m. during the middle of an up-allnighter.”

Approximately 100,000 babies are born into American military families each year, translating into a whole lot of baby-related money decisions. Can you reuse that crib and car seat? Should you spring for a fancy swing? What about starting an emergency or college fund?

“Having a baby is a challenging proposition that comes with many expenses,

often unforeseen,” Riddle said. “Preparing a solid budget and working hard to set aside some savings is critical in ensuring financial peace during a time of change.”

Concepts like “financial peace” were not on Air Force wife Paola Orellana’s mind when she became pregnant with her first. She simply concentrated on the obvious: tiny clothes, her changing body, baby furniture and toys.

“We weren’t financially prepared for anything!” she laughed.

By the time her second baby arrived almost three years later, she and her husband, Master Sgt. Mario Orellana, had learned their lesson. They couldn’t buy whatever they wanted, whenever they wanted, nor could they afford to ignore their children’s financial futures.

“Looking back now, we were never taught finances by our families,” Orellana said. “I wish we had been saving for a lot longer.”

That’s a refrain Riddle hears often. Still, he pointed out it’s never too late to begin sound financial habits, no matter what trimester you’re in — or even if your kid is already potty-trained.

The most important step, Riddle advised, is to create a zero-based budget. That’s where every single dollar is planned for in advance because you know exactly where it’s going. Start by adding up all your monthly income, then list every bill underneath and subtract. Aim to set aside 10% for savings. When a baby is on the way, include things like diapers, formula, furniture or any other infant expenses, either one-time or recurring. Whatever is left over is your “fun” money. Once that money is gone, you stop spending, full stop.

That’s what the Orellanas started doing with their second child. Each month, they add a set amount to a fund with their son’s or daughter’s name. Alongside half of Mario’s GI Bill money, they can use those funds for college, Orellana explained.

“I want them to be debtfree and financially conscious,” she said. “I want to teach them what we weren’t taught and guard them from some of our struggles.”

Riddle recommends a few other tips: shopping secondhand, exchanging childcare with friends, and rewarding yourself for goals met, like choosing a fun nursery paint color after successfully creating a budget. Setting yourself

up for financial success with a baby might be hard, he warned, but it is always worth it.

“You may need to sacrifice somewhere or downsize a car (which sounds contrary, since you are growing your family) in order to free some funds in your monthly plan,” Riddle said. “But having financial peace will mean so much more than a roomy car or excessive dining-out budget.”

EXPECTING? HERE ARE MILITARY-SPECIFIC RESOURCES:

• TRICARE not only pays for basics like labor, delivery, circumcision, immunizations and newborn care, but also for breast pumps, breastfeeding supplies and education — even for adoptive mothers who plan to nurse.

• Certain military support organizations, like the NavyMarine Corps Relief Society, offer free baby budgeting workshops.

• Familiarize yourself with all the resources of your base’s Military Family Readiness center. Centers often offer money resources like financial education, new parent support programs and more.

• Take advantage of everything military charities have to offer new military parents: baby carriers, showers, breast pumps and even free or reduced-cost doulas!

• Save on attorney fees by preparing your will — including care plans for your child(ren) — at your base’s legal assistance office.

HOW CAN MILITARY FAMILIES SAVE

WHEN LIVING PAYCHECK TO PAYCHECK?

BY LACEY LANGFORD, AFC®

A recent survey shows more than half of U.S. consumers are struggling to pay their bills, with several contributing factors including rising living costs.

Fifty-four percent of consumers are living paycheck-topaycheck, according to an inaugural report from LendingClub Corporation. Additional findings reveal 21% of respondents “have little or no money left over after spending their income.”

As a financial coach, I help many struggling to cover expenses and build their savings. Here are some of my tips to help you start.

1) Save automatically

My number one tip to save money is to make it a priority. If you’re not already in the routine of saving, you must build the habit. Setting up automatic savings will ensure you save first instead of putting it last in line.

Start a monthly transfer from your checking to savings of $25. If you can save more later, awesome. But if you can’t, you’ll save at least $25 per month. It may not seem like a lot, but remember — slow and steady finishes the race.

2) Review your income tax

Your current income is the first place to look to find more money. Do you know exactly how much taxes are withheld from your pay? Sure, a tax refund is nice to have, but that’s money you could be receiving each month instead of the end of the year.

Look at your LES or pay stub, then use the IRS Tax Withholding Estimator to determine if you have too much money taken out in taxes. If that’s the case, you can adjust it to start getting that cash in your pay.

3) Cut or reduce excess expenses

Don’t let “cut expenses” scare you. Reducing your costs doesn’t mean you have to give up your quality of life. No, cutting or reducing expenses means removing the unused and unloved things you’re spending money on. For example, if you rarely watch Disney+, why pay for it? Cancel your subscription and save the money. Other expenses you can reduce, include:

• Cell phone plan

• Storage units

• Eating out

• Grocery costs

• Service expenses (lawn care, car washes, cleaning)

4) Get a side hustle

When money’s tight, but you want to save and get ahead, sometimes the only way to do that is to earn more money. A side hustle is a way to generate extra income with more flexibility than a part-time job. Side gigs can be anything from driving for Uber to walking dogs on Rover to mowing lawns.

It’s up to you to pick a side hustle that helps generate the money you need and works with your schedule. Your side hustle money can help you pay down debt and build up savings.

5) Keep paying down debt

If you’re living paycheck to paycheck, you’re probably making the minimum payments on your debt. Keep it up! Paying off your debt will free up cash to increase your savings and quality of life. Not to mention,

ridding yourself of debt early saves you money in interest payments. The sooner you get out of debt, the sooner those payments can go into your savings account.

Don’t let living paycheck to paycheck stop you from improving your financial situation. Take one tip and start working to build your savings.

AmeriForce Media is always accepting submissions for your financial readiness stories. Got a resource to help military families improve their bottom line? Are you a service member who has money tips to share with others?

Submit your story online to Military Families website.