Many people choose to join the Air Force because of the stability it provides, especially financially. However, just because the Air Force compensates Airmen well and provides them with valuable resources doesn’t mean that they suddenly know how to budget or appropriately manage their finances. Younger, inexperienced Airmen often have the most trouble with their finances due to a lack of experience and a minimal credit history.

Despite the financial challenges Airmen can face, it’s possible for them to learn how to budget and spend their money responsibly so they can improve their financial well-being. Keep reading to learn about the importance of managing your finances and the steps you can take to do it.

Why You Should Start Managing Your Money While in the Air Force

Saving money can be challenging, especially when the economy is performing poorly and the cost of everything goes up. While saving money is difficult for many people, our Airmen experience unique challenges that most civilians don’t have to face. For example, many civilians will have access to their support network when they become an adult, while many Airmen are stationed far from home and have to leave their support network sooner. A lack of support can make Airmen more likely to fall into debt or financial hardship.

Some other reasons Airmen might encounter trouble trying to find financial stability include:

●High cost of living at some duty stations

●Minimal financial experience and support

●Frequent relocations or deployments

●Challenges with consistent spousal employment

●Predatory loans

Making a plan and starting to manage your money now can make you more financially ready to handle challenges that come your way, and you’ll be able to come out of debt and start saving for your future. The sooner you start, the less likely you will be playing catch-up trying to make up for past financial mistakes, or trying to pay off a mountain of debt.

Money Management Tips for Financial Wellness in the Air Force

If you’ve never had to manage your finances before, it might seem overwhelming trying to start. We’ve compiled some tips to help you better manage your finances so you can start planning for your future and set yourself up for financial success.

1. Create a Budget or Spending Plan

The first step in generating financial wellness is creating a budget or spending plan. You can’t effectively manage your money if you don’t know what you’re making and where you’re spending your money. The first thing you should do when creating a budget is to write down all of your expenses, such as rent, utilities, vehicle payments, debt payments, and more. You don’t want to forget expenses like groceries, subscriptions, or gas as these will be regular costs that come out of your paycheck each month.

Once you know how much you have to spend each month, write down what you make from your monthly pay. Take a look at the difference between your income and your expenses and see if there are any places where you can cut costs. For example, you may be spending a lot of money dining out rather than eating at home, which is a good opportunity to reduce your monthly costs.

You can find financial counselors or managers at your installation if you have no experience creating a budget and would like some help. Bring your financial information with you so they can assist you with creating a budget that meets your financial needs, whether your goal is to save or to pay off your debts.

2. Try to Save Each Day

From time to time, many of us make unnecessary or impulsive purchases, but when this is left out of control, you can end up spending a lot more than you think. If you have a credit card, this problem can get worse if you’re not careful with how you’re using it. Even small expenses that you don’t think will matter much will add up over time and you may be surprised to learn how much you’re spending on miscellaneous items that you don’t think will have much effect on your finances

You don’t need to cut everything out of your expenses, but consider what’s really necessary. You may even have subscriptions or other expenses you didn’t realize you still had despite not using the service anymore. The money you save can go into your savings account or toward your debt instead.

Some common ways you may be able to save each day include:

●Taking advantage of discounts: Airmen have access to a wide range of discounts for being members of the United States Air Force. You can use these discounts at many retailers to receive discounts and services at a reduced cost, which can help you keep some money in your pocket when making everyday purchases.

●Preventing impulse buying: Impulse buying happens to everyone, but it should never be a habit. If you want to buy something, consider waiting at least a week rather than buying it immediately to be sure you actually want it and it’s not a purchase you end up regretting. You should also weigh the importance of the item and whether it's a want or a true need.

●Eating out less: Many people spend a lot of money each month eating out or going to fast food restaurants rather than cooking at home. While it can be convenient to have your food prepared, it can be costing you a significant amount of money each month. Homemade meals are generally more affordable, and you can even do a potluck if you want to eat with friends and family.

●Using provided amenities: Your installation likely has plenty of amenities you can use to save money, such as recreation centers and gyms. If you have a local library nearby, you can get a library card to find free movies, books, videos, and other free entertainment.

●Enjoying free activities: If you’re looking for something fun to do in your time off, there are plenty of free activities you can participate in. Your installation or local city likely has events you can attend for free, and you can check newspapers or online social media forums to find them.

3. Consider Your Future Financial Goals

You should consider your financial goals when planning your finances. One of your goals should be to prepare for your future, particularly retirement, and saving for big expenses, such as a home or car. You’ll want to save enough to live comfortably, which will take time and effort. Different ways you can financially prepare for your future include:

●Working on your credit cards: If you have any open credit cards, make sure you’re making monthly payments on time so you can improve your credit and start working toward your debt. Some cards also have annual fees, so you may want to consider looking for another card that doesn’t have these fees and transferring your balance. Cards with no annual fees often have lower interest rates, which will help you save money over time.

●Finding methods for cutting costs: As you start looking at your budget, look for any places in your expenses where you might be able to cut costs or reduce spending. Don’t be afraid to shop around with different service providers to see if you can lower some of your bills. Looking at your budget, you may be surprised at how much you’re actually spending and at what you can cut out each month to save money.

●Saving money each month: Part of your budget should include a monthly allotment for your savings. How much you save will vary based on your financial goals and what you think you’ll need for emergencies. Make sure you’re staying consistent with your savings, and look for ways you can increase your savings each month.

●Using free checking accounts: Some banks will require their customers to pay fees if they don’t maintain a minimum balance, so you may want to consider switching banks to one that doesn’t charge these fees. Many installations have banks or credit unions that won’t charge these rates, helping you potentially save money down the road.

●Using the right ATMs: If you need to use an ATM, don’t just choose any ATM. ATMs that aren’t associated with your bank will charge fees, which may not seem like much but will add up over time if you’re frequently pulling out cash. If you can, try to only use ATMs that are associated with your bank so you don’t start piling up these fees.

4. Start Paying Off Your Debt

Debt is often one of the biggest things holding people back from achieving their financial goals, so it’s important to focus your budget and spending on paying off these debts. While it can feel shameful to have debt, it’s nothing to beat yourself up over if you’re taking the proper measures to pay off your debts.

The first step is to determine how much debt you have and set a goal for when you can realistically pay the amount off, whether it’s in a few months or after more than a year. Any purchases you make moving forward should be done with cash or debit until you have your debt under control. Remember to have an emergency savings account so you can afford unexpected expenses without having to go further into debt.

5. Budget to Save for Your Retirement

Retirement is one of the most important things you can save for as you start planning your budget. When you’re in the Air Force, you will have access to the Thrift Savings Plan(TSP), which is a contribution plan offered through the government to help you start building savings for your retirement. Part of your paycheck will be allotted to your TSP, and you can alter what percentage is taken out of your paycheck if you want to increase your savings more quickly.

The exact amount you get once you finally retire will be dependent on how much you’re contributing each month. If you want a specific amount saved by retirement, look at your TSP account and see where you’re at and how much you may need to increase your contribution. Try to put as much money as you can into the account so you can rest easier knowing that you’re well taken care of for your future. The more you put into your TSP, the more you’ll get out of it with the interest and employer contribution.

Find Support During Your Air Force Career From AUSI

Being an Airman has many benefits, but it also comes with its fair share of challenges. You don’t want to add more stress to your career by scrambling to find a uniform you can trust is within AFI regulations. That’s why you should purchase your next uniform from American Uniform Sales. We offer AFI-compliant uniforms, rank and insignia, footwear, and more. You can even find gear to support you in your day-to-day operations. Find what you need by browsing our complete selection, or contact us today with your questions!