A&FRC offers tips for financial fitness in the new year

  • Published
  • By Shauna Lacey
  • Airman & Family Readiness Center
F.E. WARREN AIR FORCE BASE, Wyo. --  January is fitness month for Year of the Air Force Family. Financial fitness is just as important as physical fitness. The start of a new year is the perfect time to review personal finances and see what changes to make in the upcoming year.

One of the easiest financial tips is to track spending. Create a spending plan to reduce or eliminate unnecessary expenses. People should spend within their means and avoid buying things they can't afford just to appear well-off. A line of credit should never be treated as an emergency fund or extra income. Pay for items with cash, pay off credit cards as soon as possible.

Also, expect and prepare for financial emergencies. The DoD released a survey showing that 90 percent of financial emergencies could be resolved if the member had $500 in savings.

Members can also protect their assets by getting insurance coverage. Those who rent off-base or live in base housing should consider renter's insurance. It's inexpensive, and it's a good way to protect one's belongings. Also, shop around for car insurance, it could save significant dollars.

Something people tend to overlook is creating a will. Very few people plan to die, but it is inevitable. Members who don't have a will run the risk of leaving their family in dire straits. The base legal office provides this service for free.

Another great financial tip is to take advantage of tax-deferred investments. The Thrift Savings Plan is a good place to start. This is a federal government-sponsored retirement savings and investment plan. TSP offers before-tax savings and tax-deferred investment earnings, very low administrative and investment expenses and a wide choice of investment funds. Active duty members can sign-up for TSP through MyPay, and civilian employees can sign up through Employee Benefit Information System.

Lastly, tax season is here. Members should evaluate their spending from last year and assess if they need to change their filing status. By doing research ahead of time and getting organized, one can maximize opportunities regarding his or her taxes.

Any member can seek help for financial questions at the Airman & Family Readiness Center by calling 773-5848. They are there to set Airmen up for success. Additionally, members can access Military One Source anytime, either via the Internet at www. militaryonesource.com or by calling 1-800-342-9647.

Financial readiness is a life skill. Mastering this skill can lead to a lifetime of financial success. For more information about financial knowledge, the A&FRC will host a financial workshop during Military Saves Week, Feb. 22 through 26. Military Saves is a national campaign to persuade, motivate, and encourage military families to save money every month.