After a period of military service, the challenges for veterans don’t end. It’s been shown that veterans face a variety of hurdles as they reenter the civilian world. You may find it tricky to reconnect with friends and families, for example. Getting back into a day-to-day routine without the structure of the military can also be difficult. Younger veterans in particular may struggle as they adapt to the real world, since they spent limited time in it before they started their service.
Money management is one area that young people may find tough. It’s important to get a handle on your financial status now, however, if you want to reach goals like owning a house in the future. Follow these tips from Capistrano Premier Insurance Services to get your money under control.
Start a savings plan
CNBC explains the majority of millenials have little to no savings. This is a recipe for disaster, since emergencies happen in life. You might have unexpected medical costs or require auto repairs. If you have savings on hand, you can cover these expenses without having to take out a loan. Taking out a line of credit can result in high interest rates and result in debt that will leave you struggling financially for years to come.
Avoid financial struggles later by starting a savings plan now and setting aside a predetermined sum of money every month. You will then have a cushion to fall back on when times get tough. Another way to boost your cushion is to use an automated savings app like Digit or Simple. These round up your transactions to the nearest dollar and deposit the extras in your savings account.
Create a monthly budget
In order to keep your savings on track, make a monthly budget and include savings as part of it. Aim to create a zero-based budget. This requires you to allot where every cent you make goes. To start, make a list of your various sources of income, from a salaried job to veteran’s benefits and rental income. Next, make a list of all your expenses. This should include food and drinks, entertainment, rent, insurance—and savings. Your expenses and income should balance out to a total of zero at the end of each month. By accounting for every penny, you avoid needless spending.
Invest in insurance coverage
While budgeting and saving can help you prepare for various emergency situations, you should also get insurance. Health insurance will cover unforeseen medical expenses, for example, while life insurance will provide for your loved ones if you pass on. There is also end-of-life insurance to cover services like a burial. The Department of Veterans Affairs offers limited coverage for a non-service related death.
Veterans are eligible for just $796 in coverage through the VA, but the average funeral costs over $7,000. Additional life insurance covers these costs and ensures your friends and family don’t have to take care of this expense when the time comes.
Improve earning potential
Earning an advanced degree is associated with a much higher average salary, but it usually comes with heavy debt. However, veterans are entitled to unique educational benefits and can often attend free or low-cost courses. With that in mind, why not take advantage of an online degree? You can earn an advanced education, boosting your earnings potential for life.
Start building up your credit
As Experian explains, good credit is useful in many ways. It allows you to take out a loan for an automobile or a house, for example. Without a strong credit score, you may not be able to achieve these types of goals. Young veterans may not have had a chance to build up a credit history, but you can make up for it now. Take out a credit card and pay it off regularly. It’s also a good idea to diversify your credit to further boost your score. For example, you can take out a small loan and pay it off.
While reentering the civilian world can be daunting, getting your finances under control doesn’t have to be. With the above tips, young veterans reentering civilian life will find money management to be a breeze.
Look to Capistrano Premier Insurance Services for more information on meeting your personal and professional financial goals.
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