5 Financial Faux Pas Military Service Personnel Need To Avoid

| July 21, 2016 | 0 Comments

Being in the military means that you get to defend your country. You also learn a vast range of skills, many of which you can also use in civilian life. Most people in the military feel honored to be defending their homeland.

The trouble is, a lot of military personnel lose focus on their personal lives. And, often, many make bad financial decisions. Ones that can have an adverse impact on their immediate families.

If you’re in the military, you need to make sure that you avoid making the following five financial faux pas:

soldier

Image Obtained From Wikimedia Commons

  1. Buying a house

As people get older, many want to start establishing roots. It’s the same for those in active service. Many personnel may even have spouses and young children in tow. To them, buying a house makes perfect financial sense.

But, the opposite is true, sadly. The nature of the job means that you will spend little time in that house. And neither will your family if they travel with you while you’re on active duty.

  1. Not planning for your retirement

Let’s face it. You’re not going to spend your entire life in the military. At some point, you will want to relax and live out your twilight years in comfort. One thing a lot of military men and women don’t do is plan for their retirement.

Many folks will quit the military and get civilian jobs before they retire. Did you know that they have to buy back their military time so that it can get applied to civilian pensions? The sad truth is the process is often complex and annoying. You can help from My Fed Benefits to make the process easier.

  1. Not improving your money management skills

It’s tempting to spend the money you earn on all kinds of material possessions. After all, shopping makes you feel good about yourself, right?

reciept

Image Obtained From Pixabay

The trouble with that approach is that your money will soon dry up. You could end up needing to take out loans just to cover your monthly expenses. Soon, you could end up in a cycle where you’d have to borrow money to cover existing debts. All military personnel should take advantage of free financial management skills offered.

  1. Not thinking about careers after military service

When your tour of duty ends, you may wish to return to civilian life. One surprising fact is that those who transition back into their old lives don’t know what to do next!

They have no idea what kinds of jobs they could do when they leave the military. The good news is that many skills acquired during military service can get used in civilian jobs.

  1. Buying a car

Yes, a car is useful for getting around. Especially if you get stationed at a military base. In many ways, buying a car is just as bad as buying a house when you’re still in the military.

redcar

Image Obtained From Flickr

If you get stationed in other countries, it’s hard to take your car with you. Plus, if you take out a loan to get the car, you might not be able to afford the repayments.

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Category: Finance

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