Money is a topic that has long been something not discussed in “polite company.” But it should be.
With high unemployment rates for the military spouse due to frequent moves and lack of childcare, maintaining a dual income household is difficult for the military family. With costs of living rising, understanding the importance of financial health is more important now than ever.
According to the newly released 2019 Blue Star Families Survey, the number one stressor for military spouses and the service member is finances. Further research found that one third of military families can’t pay their bills on time and are more likely than the average American to be behind on their bills. Reading that should absolutely infuriate you!
How can we allow the families that sacrifice so much be continually on the verge of bankruptcy?
Increase income opportunities
Many military families turn to side gigs to bring in extra income. But there are true opportunities for the military spouse to be able to pursue a career that they are passionate about. Within the last five years, remote work has grown by 42%. This type of work is almost made for the military spouse when considering the barriers to gainful employment. There are many resources out there to assist in finding remote work that is right for you.
- Instant Teams pairs military spouses with employers for projects, taking away a lot of the “work” of searching for you.
- WISE Advise + Assist Teams does the same. Both options are companies that employ military spouses, veteran spouses, and veterans. They understand this life and will help walk with you through your remote work journey.
- The Association of Military Spouse Entrepreneurs will give you all of the resources you need and support to be a successful entrepreneur. Their basic membership is completely free! So instead of staring a sea of google, join in with other spouses as they navigate the same waters.
Manage the debt
If you are feeling overwhelmed with your finances and mounting debt, seek out help. Excessive debt or filing a bankruptcy can lead to the service member losing their security clearance and therefore possibly affecting their ability to even continue to serve. Pride is not worth it.
- Track your spending. So many people feel like they don’t know where their money goes. In a day of swiping, it can be easy to spend too much. Write everything down.
- Set up a budget and live by it. Pinterest has some amazing budget ideas that were created by military spouses who were living on one income. You can also seek assistance through your base for financial counseling or even your own bank.
- Build short, medium, and long-term financial goals for your family. Tackle one debt at a time as you stick to your pre-planned budget.
- Look into the Servicemembers Civil Relief Act and ask to speak to your bank’s SCRA representative to see how you can save on interest rates related to your student loans and credit cards. Legally the rates should be capped at 6% if you qualify, assisting you with bringing down that debt.
- Use a small percentage of earnings every month to be put in savings.
- Stop using your credit card. The high interest rates will continually dig you deeper into the hole. A credit card should be used for emergencies and even then, there are resources like Army Emergency Relief, Air Force Aid Society, Coast Guard Mutual Assistance, and the Navy-Marine Corps Relief Society. These organizations will give you grant’s or loans at zero percent to assist you with your emergency. Use them!
- As a last resort, file for bankruptcy. Those serving in the military have just as much legal right to do so as civilians. It may affect security clearances but can also look more favorable than delinquent debts. If this is where you are, meet with your base’s financial counselor.
Create good habits
Examine the things you have in your life, eliminate things that aren’t necessities. Seek out support and help, there is no shame in it. We’ve all been there. By building a healthy budget and increasing income opportunities you can find your way out of debt.
Take the first step; it’s the hardest – but it will be worth it.