Written by guest blogger Letty Stevens, AFC®
Millennial servicemembers, do you have an emergency savings SMEAC? Whether you’re just building emergency savings or adding to it, here’s a basic emergency savings tactical mission plan for you to use today. When you have a plan, it’s easier to save.
A: Administration and logistics
C: Command signal (terms, code and signals)
SITUATION: If you are not saving a percentage of each paycheck to create an emergency savings account and to save for your financial goals, you may have a serious situation on your hands. What stops someone from saving up for his or her financial goals? Let’s think about this. The opposite of saving is spending, and you are surrounded by this enemy every day. This enemy is highly trained in the marketing of its product. When you go into a grocery store, you are the target.
From the music you hear to the colors you see, everything is strategically implemented to get you to spend your hard earned money. Even Harvard contributes to the science of marketing. It’s no wonder so many people are in debt!
MISSION: The mission of Military Saves is to help you reduce debt and build long-term wealth through financial action. So, how do we learn to do this?
- Reading: It is best to learn from those who are succeeding at financial management. Reading about financial management is a good start. You are reading this article, so we can check that box.
- Speaking: Make talking about your finances a healthy conversation by focusing on goals. But who can you talk with? Who do you trust enough to speak freely about something as personal as your finances? If you are married, please start the conversation with your spouse. I reference this list before speaking with my spouse about our finances. If you are having a hard time speaking with your spouse about your finances, you can always get free assistance from financial professionals on your installation. Military OneSource also has financial counselors available, and they are just a phone call away.
- Doing: This situation requires a plan. A financial plan is unique to the individual because it often depends on what you value. What do you value? When you know what your values are, you can easily identify where you want your money to go and, more importantly, where the financial holes are. This is the beginning of a budget. The younger you start learning, the more you can save.
- Teaching: It is our parents who provide the foundation for our adult lives. Unfortunately, not everyone learns good money habits from their parents. If this is the case, teach yourself. Newly married couples teach each other. Parents, teach your children.
EXECUTION: Start the conversation today! The sooner you begin reading and talking about savings, the sooner you can start to change your behavior to line up with your financial goals. What percentage of your pay can you save per paycheck? When will you set up that automatic savings deposit at the bank? Who is your buddy who will hold you accountable? You have a stable paycheck and numerous resources to help you along as you create your financial plan and work on your financial goals.
ADMINISTRATION: You are the sole administrator of your finances. When a married servicemember deploys, the spouse often becomes the administrator. Should you seek expert advice, again the free financial counseling found on your installation is the way to go.
COMMAND/ SIGNAL: You are a confident servicemember. Are you confident that you can reduce your spending and increase your saving? Since you’ve already started by reading this blog, you should be confident. Keep reading, keep learning and keep saving.
Set a goal. Make a plan. Save automatically.