After serving in the military, it can often be difficult to adjust to civilian life. Whether you’ve served four years or have been in for one or more decades, getting your finances in order after active duty is crucial in preventing and eliminating debt. For this reason, it’s important to take the necessary steps to organize and secure your finances in a way that will benefit your future.
Start a Savings Account
Regardless of how much you’re earning after coming out of the service, it is a smart idea to create your own savings account. Savings accounts are great for two things: building a nest egg for yourself and accruing interest.
If you’re going to be opening a free savings account with a local bank, you might not build a lot in terms of interest over the course of a year. However, some accounts can accrue quite a bit of interest, making it easier than ever to have an emergency fund in the event that you need quick cash. For veterans, a savings account can be used to save up for a car, home or just to have money squared away in case it’s needed.
Go Back to School
A positive about being a veteran and choosing to go back to school is that you can benefit from military loan forgiveness. This ensures that your college-related debts are eliminated, allowing you to attend school for free.
You should consider a field of study that you’d eventually like to become employed in. Whether this is the healthcare field or business, a school can prepare you for everything you need to create a solid, worthwhile career. With a steady career comes an even steadier paycheck, so you’ll feel confident in your ability to buy a home or settle down with a family.
Create a Budget
Budgeting can be difficult, especially if you’re always used to spending whatever you make. However, budgeting allows you to start saving up money that can be used towards other more important things.
Budgeting means avoiding overspending on frivolous things, like multiple streaming services, and putting money away into a savings account. The best way to create a budget for yourself is to look at your income to debt ratio. Create a spreadsheet according to what you can spend and what you’ll have leftover after paying all of your bills. If you owe more than you make, it’s time to look into going back to school to secure a more stable income.
Understand Your Benefits
Veterans have a number of quality benefits that are given to them both in and out of active duty. These include VA-approved loans, medical aid and loan forgiveness. It’s important that you become aware of any and all of the benefits that are given to you so that you make use of them fully.
The worst thing you can do is to pay for certain things yourself without knowing that you can receive assistance. In doing so, you’ll be saving money in the process that can be put towards future endeavors.