1. General Money Management & Personal Savings and Investing
#45 PG. 211
#46 PG. 213

2. Purpose
To inform TSMs of some general money management techniques that may assist them in preparing financially for their transition
To make the TSM aware of the importance and options available for savings and investments

3. Some questions to think about….
Are you financially ready to separate?
How much do you have saved currently?
Do you currently have any debt?
Can you live a similar lifestyle if you separate tomorrow?

4. General Money Management
Do you have an Emergency fund?
General rule of thumb is 3-6 months of living expenses in a savings account.
Actually calculate those expenses
Start with $500-$1000 minimum then build up

5. General Money Management
Do you have an active budget?
This should be updated and monitored monthly
Budget down to the dollar (every dollar has a purpose)
Yes, fun is a purpose! But should be budgeted as such
Set up a 12 month post separation financial plan at minimum

6. General Money Management
What are you worth?
Find your net worth. Assets (what you own) – Liabilities (what you owe) = Net worth (what your worth)
You may be surprised to find out what that number actually is!

8. General Money Management
Do you currently have ANY debt? (car loan, phone lease, credit cards, personal loans, mortgage)
Have you considered expenses that are currently covered/included?
Health insurance, life insurance, etc.
Do you have a plan to become debt free?

9. General Money Management
Debt Management programs are offered through Family Support/Service Centers
Keep in mind these only help to certain extent
It is ultimately the individuals responsibility to put forth the effort by:
Sticking to a budget
Refraining from over spending
Avoiding the use of credit cards
Debt management programs is designed to help individuals make debt repayments in a suitable manner (before transition) as well as many other companies who have experience in debt management, but use caution especially when it comes to debt consolidation companies.

10. Have I saved enough to separate/retire comfortably. What is enough
Have I saved enough to separate/retire comfortably? What is enough? Can you maintain your current lifestyle?
Personal Savings & Investment

12. Personal Savings & Investment
This is designed to put money into an account for withdrawal when needed.
Ex. Your 3-6 month emergency fund or a short term goal
Note that savings accounts do not provide much return on interest

13. Personal Savings & Investment
Four common types of investments
Bonds: Companies, cities, states, and gov sell bonds to help raise money for their institution
Certificate of Deposits (CD): The banks way of making money
Stocks: Owning a part of a company (involves risk)
Mutual Funds: Pools of money from small investors that is used to buy stocks, bonds or other securities (not just in stocks alone).
**Utilize your employer 401K or IRA as your primary investment for retirement

14. Resources Fleet and Family Support Center
Walter Reed Bethesda
Bldg 11, Bethesda, MD 20889
Phone: (301)
Financial Specialist at the command (free while on active duty)
Don’t wait until you have financial trouble to speak with a financial specialist
Military One Source:
Provides strategies on consolidating and paying down debt
Saving for retirement or college
Creating a financial plan
Set up financial counseling
Financial Specialist: Take advantage of this resource while still on active duty to discuss not only budgeting, but savings and investments and financial planning

15. Resources
Debt Relief Help for Military Service Members:
Financial Management and budget:
Save and invest for the military:
Specific information for transitioning service members retiring or separating
Credit Report Information: Pull your credit report for free!

16. My Recommended Resources
Institute for Financial Awareness:
Non profit organization
Provides one on one financial counseling as well as offering to teach financial workshops on base
Specialize in helping federal employees
Local Rep: Mario Taffo & Edgar Johnson
Phone:
Address: 17B Firstfield Rd. Ste 108, Gaithersburg, MD 20878

17. My Recommended Resources
Financial Peace University
Dave Ramsey’s 7 baby steps:
1. Save $1000 for your starter emergency fund
2. Pay off all debt (excluding mortgage)
3. Save 3-6 months emergency fund
4. Invest 15% of household income for retirement
5. Save for your child’s college fund
6. Pay off your home early!
7. Build wealth and give!

18. My Recommended Resources
Financial Peace University:
9 week program on money management
Find a local group offering the course in your area
Fee based $129 (includes all the bells and whistles)
Or find a group offering for free in your area!
Military edition: If interested in bringing the training to your command.

19. Time for a financial change
It’s time to think about your finances differently!
Can you imagine having no debt?
Can you imagine paying off your home (or future home)?
Can you imagine wanting a newer (not brand new!) car and cash flowing it instead of taking on more debt?
Can you imagine not reaching for your credit card for unexpected expenses?
Can you imagine being a millionaire by retirement?
If you answered yes to any of these questions, then it just might be time for a change!

20. Take away…
Don’t just take my word for it or any one persons for that matter! Do the research, utilize your resources and make an informed decision when it comes to your money!

22. Questions?