This post is specifically for my Military family out there, although it can apply to many other homes as well. Yes, in this post, we will be talking about the dreaded, stressful, and sometimes overwhelming subject of money.
I grew up in a large family, and although we were always taken care of and provided for, there was always stress about money. I think hearing about the finances so often and so openly really caused me to become money conscious- which isn’t exactly a bad thing. Yes, sometimes I stress over mine and my husband’s finances way too much, but it has made me a little more responsible with money compared to many other wives that I know. In our home, I am the one who primarily deals with the finances, not because my husband is inadequate in any way, but he is neck deep in pilot training and does not need the added stress that managing finances can often bring upon us.
Now, I am no genius when it comes to money, but I do have a few useful tips that I believe could possibly help others. I still have a lot to learn about managing finances and preparing for a future (kids, college, retirement, etc.) but I am going to share what I know now, and I hope that it may be a help to others.
There are some basic principles/rules to follow when you are first starting off- whether it be on your own or married.
Rule 1. Calculate what you make on a month to month basis and then make a budget– You need to know what you are bringing in and what you are going to be shelling out. Microsoft Excel is a great program to use when you are doing this. Include everything! That means the following: Rent, Utilities, Insurance, Loans (car, house, student, personal, etc.), Savings, Gas, Groceries, Phone, Cable, Internet, Travel fund, Fun/Spending money. <— any of those that apply! Please make sure that you are putting away money into a Savings/Emergency fund. You should work on building this to (minimum) 3 months total income.
Rule 2. Live within your means- let me put it this way, if you make $2500 a month and your budget total (what you pay out) is $2450, do NOT go buy a new car, you cannot afford it! Also, do not go out and buy expensive name brand handbags, shoes, jewelry, watches, etc. unless you have set aside money for it and planned for it. Why? You do not need it and you do not want to risk over-spending. You should always have a little wiggle room that way you CAN go and enjoy a spontaneous lunch or dinner with a friend if you want. Get what I am saying?
Rule 3. Credit Cards can be dangerous- try to stick with using a cash system- It is very hard to control your spending with a credit card, I speak from experience. You tell yourself, “Well, I dont have the money now, but I get paid in 2 days and I will pay it off then!”. You really do plan on paying it off, but then someone invites you to go shopping and you find something else that you just HAVE to have so you spend that alloted amount (that you planned to pay the card off with) on something else. Its a vicious cycle! It takes a VERY strong person to be able to use a credit card wisely. My best advice, do not use your credit card on little things. If you need to buy a plane ticket last minute, ok that’s fine, that is what it should be used for. Make sure you pay it off ASAP!
Rule 4. Save for big purchases- This goes back to “living within your means.” If there is an expensive item that you really want, then save for it. I guarantee you will either change your mind about it, or you will be much happier knowing that you didn’t break the bank when you purchased it.
Rule 5. Do your best to contribute- This one is mainly for you wives out there. I understand that many wives are moms and they want and need to stay at home with their children, that is wonderful! Also, as a military wife, it is sometimes hard to find a job when you keep moving every few years. Many places do not want to hire a military wife because they know that we are not there permanently. If that is you, there ARE ways you can contribute to making your home a financially stable home. For example: Couponing, planning out meals and snacks and then only buying what is on your list, working from home (cleaning business, music lessons, sewing and mending, paid blogging, photography, babysitting, etc.), getting rid of useless memberships if they are causing financial stress (tanning, gym -try working out from home), cooking at home more instead of eating out. These are just a few ideas! Also, if you are capable, get a job! If you are capable, there are jobs available, and you are struggling financially, please just get up and go get a job! Even if it is just part- time work, it will help and your husband will appreciate it.
Rule 6. Commit to getting out of debt- Debt is such an ugly and horrible thing! I absolutely hate it! I promise that when you become debt free your stress level will go down significantly. Also, that money that you spent on paying your debt every month can now be put towards a savings account, or an investment! That money will profit you much, much more if it is in a high interest account/fund. You can also motivate yourself by promising yourself a “fun purchase” once you are debt free. Just don’t overspend and get yourself in debt again…haha 🙂
Also, if you need help, check out Dave Ramsey’s approach on getting out of debt! http://www.daveramsey.com/articles/content-center/category/lifeandmoney_debt/
Rule.7 Save, Save, Save!- I know I already mentioned this, but I cannot tell you how important it is to SAVE! You never know when an unexpected expense or emergency is going to come up and you need to be prepared for it. Also, it is highly advised to have 3-6 months income in a savings account. God forbid something happens and you lose your job, you want to make sure you can provide for your family while searching for another job. Trust me, putting away money in a savings account every month is so much more important than that new phone you have been wanting and will definitely be more useful in the long run.
Well folks, there it is! A few helpful rules to help you out with your finances and hopefully relieve some stress as well. As I said before, I am no expert by any means, but this has helped me and I hope it helps you as well. 🙂