Does Saving Ever End?

2021-04-23T09:15:33-04:00

When I first joined the military, I was focused on the here and now. The “here” usually meant whatever restaurant or store I happened to be in, and the “now” was this pay period.

It wasn’t that I didn’t have any savings goals, it was that they were either very immediate (I will buy that phone when it is released next month) or super unfocused (someday I may want to buy a house).

The problem was that even though I had a mom who was thrifty because she had grown up poor, I didn’t really understand HOW to save. The actual mechanics of it.

I didn’t know that saving is a habit, like any other habit. That it’s something that you have to work on consistently and internalize.

I didn’t know that I ought to have saving goals, plural.

I didn’t realize that the best way to save is automatically (https://rly.pt/32GEIy9) – by having a portion of my pay go into a separate savings account each month.

And most importantly, I didn’t understand that saving is something that has to happen continually over a lifetime.

That sounds way more depressing than it should. Saving is not a burden; it can be very freeing. There is an indefinable peace of mind that you get when you know that getting new brakes or having a root canal or buying a plane ticket home to see a sick relative is not going to send you spiraling into credit card debt because you have a healthy emergency fund (https://rly.pt/3enuF6M)

But the reality is that saving is a process more than an end state. You build up your emergency fund over a few months, and you may have a certain number in your head that you are trying to reach, maybe it’s 3 months of living expenses or maybe it’s $1,000. If you deplete that emergency fund because you desperately need new tires, then you must replenish it.

And once you are in the habit of saving, you will find that you are suddenly able to juggle multiple savings goals at once. My husband and I are simultaneously saving for retirement, a new car, our daughters’ education, and a big vacation.

This would have seemed impossible to me when I was young. I could barely pay my bills and didn’t have anything left over to save. But I was looking at it all backwards: I needed to save something *first,* even if it was only a few dollars, and then take care of the bills. Eventually, I didn’t even notice our allotment going to our savings account. I just had to overcome the inertia and get started.

If you want to get started saving, or simply want to hone your savings habit, visit militarysaves.org (https://rly.pt/3cgfI6G) and take the Military Saves Pledge (https://rly.pt/3renCl2) which is just the start of a simple spending plan. We’ll support you on your savings journey, because it’s a long road, but it doesn’t have to be a bumpy one.

32GEIy9)

Response by SFC William Farrell made Apr 23 at 2021 2:50 PM

2021-04-23T14:50:06-04:00

1LT Lila Quintiliani Savings are wasted on youth. When I was younger I wasn't thinking of the future or what it held, I was living in the moment. I really started saving after my wife died. I took her money out of her teachers retirement system and added it to mine. When I left teaching and got a job on the Navy base, I took all that money out and added it the the TSP. When I retired from the Navy base I eventually put all that money into a First Command account. That is over a half a million now and thats not counting other assets my current wife and I have now. I am a spender, my wife is the thrift person. I wish I had really started saving earlier. It is so important for young people.

Response by LTC Stephen C. made Apr 24 at 2021 12:31 AM

2021-04-24T00:31:28-04:00

1LT Lila Quintiliani, in the financial services world, wealth is composed of three phases: accumulation, distribution (taking income from savings in retirement), and transfer (passing remaining wealth to heirs upon death).
With that in mind, continuing to save does not occur during retirement (or the distribution phase). One may simply elect to not spend a portion of that which has been accumulated. So to answer your question literally, the saving function does end. I’m splitting hairs, I know, but that’s what occurs.
Nonetheless, I appreciate your thoughts on saving and your ability and creativeness to accomplish that which many will not even try.

Response by MAJ Ken Landgren made Apr 25 at 2021 2:10 AM

2021-04-25T02:10:07-04:00

My way of savings is getting a large tax refund like $7,000 each year. I know. I know. It is more efficient if I give a loan to the government. My ex wife ruined me financially, so I don’t care about financial nuances. You can tell me I am wrong, but getting $7000 will make me smile. What’s even crazier is I still need to file for 2019 as well.

Response by SGT Jd Cannon made Apr 26 at 2021 12:54 AM

2021-04-26T00:54:47-04:00

Does saving ever start? When I was enlisted all the way up to an E-5... there was never room to save. It just wasn’t there. The military should start separation accounts for lower elisistwd.

Response by SFC Randy Hellenbrand made May 1 at 2021 10:15 AM

2021-05-01T10:15:05-04:00

Savings are never wasted. Start as young as you can and never stop However, the QUESTION IS; Where to save? Now days saving is a gamble. The average person is pretty well stuck with the stock market so you got it today and tomorrow????. Look for stuff that is FDIC insured. Wish I had when W got everything.

While we all know things happen and money is needed-NOW, it's also needed LATER when you retire. Then again like for my granddaughter when you PASS IT ON. The whole idea is that some savings should be to make it better for our descendants.

America's real problem is that there is no decent long-term interest rate at any of the banks anymore like I had when I was a kid. I was gonna start a $500.00 account for my granddaughter, the interest for a year was going to be about $1.50. If I want to gamble, I go to the casino. We really need to break the hold that wall street has on America.

Response by SSG Edward Tilton made May 7 at 2021 1:43 PM

2021-05-07T13:43:03-04:00

Better to save than owe. Many people pay half of what they earn to banks and loan companies. I was lucky, I found a job that allowed me to pay off everything. Mortgage, car loans, credit cards everything. Now I don’t have to look over my shoulder

Response by Arene Sanders-Rushdan made Jun 11 at 2021 5:25 AM

2021-06-11T05:25:09-04:00

I got the how money works memo in my 40s. Fortunately I was blessed by GOD to be a registered nurse and work long enough at facilities that pay retirement. In addition to the job retirement, I got set up with a ROTH, emergency fund, life insurance, home owners insurance and I learned to purchase homes when it is a buyers market. First time home purchase was another blessing because I did not have the infromation then. Eventhough sometimes individuals have to do resets when dealing with an evil ex, GOD still gives blessings.
I try to share with youngsters to save while they are young but some do not have the mindsets to see the benefits of doing it now as they live in the moment and with the hope of parents rescuing them.
Blessings to all and thanks for sharing!

Response by Capt Seid Waddell made Jul 22 at 2021 4:51 PM

2021-07-22T16:51:54-04:00

When I was a 2LT, a Major gave me some good advice. Always live two pay raises behind your current pay, and bank the raises. Then when you get another bump, take the oldest raise for current spending and bank the new raise. When I was in the raises came frequently at first - over one year, 1LT at 18 months, over two years, Capt. and over three at three years, ...etc. The pay bumps were small, but the habit of saving was formed early.

He also recommended that we record our checkbook totals at the next larger whole dollar amount so that we were always building a buffer and never had to worry about bounced checks - which the Command frowned upon.