Transitioning from military to civilian life can be both a challenging and exciting time for young veterans. Adjusting to life outside the military can come with a range of financial challenges but many opportunities as well. In this article, we’ll discuss the importance of creating a budget, putting money aside for the future, and avoiding common financial pitfalls. These tips from Right Key Mortgage will help you take control of your financial future and set yourself up for a secure and prosperous civilian life!
Find Simple Insurance Solutions
Insurance is an important consideration, especially for veterans looking to buy a home or get married. The right insurance policies will provide protection in the event of unexpected expenses like medical bills, car accidents, or natural disasters. Without insurance, these unexpected events can make it difficult to meet your other financial obligations. Get in touch with a reputable insurance agency for help finding simple insurance solutions that meet your needs.
Consider Starting Your Own Business
After serving time in the military, veterans possess a number of important skills, such as leadership, teamwork, and problem-solving, that can help them thrive as entrepreneurs. Consider putting these skills to use and starting your own business! Becoming an entrepreneur will give you greater control over your career and the potential to build significant wealth.
Forming an LLC is a smart financial move for small businesses. LLCs enjoy tax advantages and liability protection, which means you will not be personally responsible for your company’s debts or liabilities. If you’re interested in starting a business and forming an LLC, you can skip the lawyer fees by using an online formation service. Learn how to start an LLC, so you know what to expect!
Track Your Income and Expenses
When you were in the military, you didn’t have to worry about budgeting. But now that you’re transitioning to civilian life, you’ll need to keep track of your income and expenses to avoid overspending and make the most of your money. As MoneyUnder30 explains, getting into the routine of budgeting when you’re young is an excellent way to build healthy financial habits that will benefit you for years to come! Try a few budgeting apps until you find one that works best for you.
It’s also a good idea to make an organizational system for your receipts so that you have everything on hand come tax season. You can collect paper receipts and documents, but going digital can be much easier. In fact, this tool can scan a document and convert it into a PDF in a matter of seconds. Then, you can save it in a designated folder for easy reference.
Build an Emergency Fund
On top of budgeting, setting aside money for emergencies is important for your financial security. Without an emergency fund, you may need to cut your spending or incur debt to cover emergency expenses like medical bills or car repairs. Practical Money Skills suggests setting aside three to six months’ worth of living expenses in your emergency fund. Be sure to keep this money in a savings account that you can access quickly when needed.
Avoid Financial Scams and Predatory Lenders
As a veteran, it’s important to be aware of potential scams and predatory loans. Unfortunately, many financial scammers target veterans with benefit scams, debt collection scams, and phony sweepstakes scams. Young adults are also common targets. Learn how to identify and avoid financial scams! For example, look out for red flags like pressure to act immediately, guaranteed loan approval, debt cancellation promises, and requesting payment through untraceable methods like prepaid cards or cryptocurrency.
If you need money, try to avoid predatory loans. Payday loans, check advance loans, 401(k) loans, and pawnshop loans are designed to be debt traps. Consult a financial professional if you need help getting out of debt or borrowing money, and they will help you find a legitimate solution.
Put a Plan in Place for a Strong Financial Future
Young veterans face unique challenges when it comes to managing their finances. By creating a budget, building an emergency fund, and working with reputable financial professionals, you can set yourself up for long-term financial success. And if you’re interested in entrepreneurship, consider starting your own business and forming an LLC. Secure a bright financial future for yourself by taking control of your finances today!
When you’re ready to buy your first home, contact Right Key Mortgage to get pre-approved and complete the loan process quickly.