Savings, Thrift & Investment | |
Savings, Thrift & Investment | |
1046 VIEWS | |
![]() | |
PROSHARE | |
PROSHARE |
Monday, January 06, 2020 / 08:30 AM / Sponsored Post / Pete McAllister / Header Image Credit: Stripes
When
enlisted in the army, your patriotism is reflected in your salary, and you
should take full advantage of it and turn it into a resource that will help you
when you leave the service. It's common to have debts even when you are serving
in the military, which makes it vital to learn how to manage your money. If you
are about to leave the service, these tips will help you get out of debt and
manage your money.
Take Care of Your Credit Score
When
on active duty, it's common to ignore your credit score because of your
relationship with the military. As a civilian, your credit score becomes the
most significant factor in getting loans and lower interest rates. A credit
score of 700 and above is considered great with that of more than 800
considered excellent. Most people range between 600 and 750, which is
what's needed to show confidence that you repay your future debt. If your score
is lower than this, and you are still in service, paying your debts on time
will help you pull your score higher.
Consolidate Your Loan
Consolidation
is taking out one large loan to repay your small loans. It can help you
manage your loans because you don't have to worry about paying tons of smaller
loans at the same time. Although the VA does not have consolidation loans, they
have a VA loan refinance
that's considered the same as a consolidation. If you own a home that was
financed with a VA loan, you may be eligible if you meet other qualifications.
The VA will appraise your home to make sure that consolidating your debt will
not exceed the value of your home.
Don't Let Credit Card Debt Pile Up
The Servicemembers Civil Relief Act protects you from paying high-interest loans while you are on active duty, but standard interest rates kick in when you leave. Interest rates are usually double digits, so if you are not careful, your interest can pile up. Don't ignore the bills. Instead, pay them on time to maintain a high credit score and reduce the stress that comes with paying too many costly bills. Read the fine prints on your credit card to learn when you need to make payments, so you stay on top of your game.
Start Saving Early
The
most effective way to manage your money is to always have a buffer account.
If you haven't opened one yet, it's time to start thinking of saving money for
emergencies and retirement. Open a dedicated account for emergencies and start
contributing to 401K. When you have enough saved to last you at least six
months, start thinking of investing your money in stocks, bonds, and other
investment plans. Growing your money will give you freedom when you leave the
service and secure a comfortable like for you and your family.
The
earlier you start managing your money, the easier it will be to get out of debt.
Talk to a financial advisor and know your options before making any significant
financial decision.
Previous Articles from the Author
1. What
Entrepreneurs Need to Know Before Entering A New Market
2. Understanding the
Advantages Of Using Employee Tracking Software
3. Five
Quick and Easy Ways to Take the Financial Pressure Off
4. How
Leasing A Car Can Benefit You and Your Lifestyle
5. Startup:
How to Avoid Inventory Management Mistakes
6. Does
Smiling Help with Depression?
1. Talent is Not Hard to
Find in Africa, We Must Help Our Young To Accelerate Productivity - Elumelu
2. 4 Tips on Running a
Restaurant Business Successfully
3. How Coworkings Can
Boost Your Productivity
4. Startup: How to Avoid
Inventory Management Mistakes
5. Osinbajo Calls on Banks
in Nigeria To Support FG Efforts At Resuscitating MSMEs
6. 5 Low-Investment
Business Ideas
7. Reworking Youth
Entrepreneurship in Nigeria To Drive Growth
8. Why Youth Investment is
Critical to Africa's Transformation- Akinwunmi Adesina
9. Business Finances Tips
for Entrepreneurs
10. Lessons for Nigerian
Entrepreneurs; Leo Stan Ekeh
11. Why We Are Setting Up
an Entrepreneurship Bank
12. Shared Experiences -
Achieving Financial Inclusion by Building on Existing Models Like A Cooperative
DISCLOSURE: This is a sponsored content as
indicated in the source above; and is not a recommendation to buy or sell
securities or the products mentioned therein. Proshare Content and their
owners, managers, employees, and assigns (collectively the "Company")
are bound to comply with in-house governance rules requiring this necessary
disclosure to ensure that readers, subscribers and consumers understand that
the content is advertising and should not take it as an unbiased reporting on
our part. All T&C applies.