How to gain financial freedom

  • Published
  • By Airman 1st Class Yash Rojas
  • 354th Fighter Wing Public Affairs
EIELSON AIR FORCE BASE, Alaska --  Some Airmen arrive at their first duty stations with little experience with budgeting, saving and investing for the future, however, financial woes can affect servicemembers at any point in their careers.

The Personal Financial Readiness manager offers tips and tricks to successful financial management to young Airman and can further explain necessary steps to reaching financial freedom.

"Financial irresponsibility can severely affect the Air Force mission, delaying deployments and reducing mission effectiveness," said Don Murray, 354th Force Support Squadron Airman and Family Readiness Center community readiness technician and personal financial readiness manager. "Airmen need to understand the consequences behind habitually making late payments, overspending and living from paycheck to paycheck."

Airmen who continuously miss payment deadlines or are unable to pay bills or loans may see negative changes to their security clearance status, he said. In general, financial instability can create a difficult environment in and out of uniform. The most effective method to overcome this challenge begins with a positive approach.

First-term Airmen receive a 4-hour briefing -- a crash-course of financial knowledge -- to propel them on the path to financial freedom. Because briefing serves as an introduction, Airmen are encouraged to schedule a one-on-one session at the Airman and Family Readiness for additional help.

"They can also attend one or more of the personal financial readiness program classes. Courses are aimed at moving to a more effective mentality -- plan for the worst, hope for the best -- and steer clear of the old notion, make more, spend more, which tends to lead to financial irresponsibility," said Murray.

"In my experience, I've seen financial irresponsibility within the military in the form of individuals living beyond their means," said Master Sgt. Melissa Mitchell Cropper, 354 Fighter Wing equal opportunity and first sergeant. "Each individual must take a hard look at themselves and their bank accounts to put themselves on a realistic budget."

"Members can get help from the AFRC so they can develop a budget. Plus it is best to get help before you get too far behind in payments," she added.

New Air Force members are sometimes overwhelmed with the temptation to spend earnings on large purchases like vehicles that are well beyond their budget, not thinking about added expenses associated such as higher insurance, maintenance cost and rising gas prices.

"Careful monitoring of Leave and Earning Statements looking specifically for changes in BAS, BAH and COLA is important to avoiding advanced debt," Murray added. "I see too many servicemembers having to pay back fees."

After creating a manageable budget, individuals can meet short and long term goals.

In combination with a budget plan, an emergency fund helps narrow the gap when an unexpected expense such as plane tickets, car maintenance or a family emergency presents itself.

"I wish someone would have talked to me about having a plan for the future," said Murray. "I would be able to retire right now."

With an ever-changing economic landscape affecting the lives of Airmen and their families planning for the future is now more important than ever said Murray.

Airmen who plan to retire with full benefits can better prepare for the future by having a budget plan that meets their needs and helps accomplish goals necessary for financial freedom.

For information, please call the A&FRC at 377-2182.