Veterans served in military, air, or naval service. And sometimes on foreign soil. They’re highly honored and commended by the government and the people. Hence, various legislations have been created to provide just benefits and to show sincere appreciation to these combat war heroes.
According to a trusted source, about 29.9% of US veterans have disabilities, and the veteran poverty in 2019 was 6.7% (same rate in 2000). Because of this statistical data, it’s crucial for veterans to manage their personal finances properly to maintain their high standard of living and quality of life.
Are you in the military service or a veteran? Learn more about how to manage your personal finance by reading this ultimate guide for veterans.
- Mind Your Credit Score
Your credit score is important when taking out a loan. Credit reporting agencies use the information in the individual’s credit report to determine the credit score. Like any other loan borrower, veteran applicants need to present a satisfactory credit score to get loan approval.
The different factors that can affect your credit score are your payment history, length of credit history, bankruptcy, and different types of loans you have. Lenders like to approve loan applications for applicants with good payment history or a record of paying bills on time. Consistently making payments over a long period can raise your score.
A minimum credit score needed for military personnel and veterans seeking a VA (Veterans Affairs) loan is between 580 and 620. But you can also attain an 800 credit score for a higher VA loan amount. In addition, even if you filed for bankruptcy, you can still improve your credit score and qualify for a VA loan.
- Equip Yourself With The Right Financial Info
Personal finance involves saving, investing, and managing your money, which also includes budgeting, insurance, banking, mortgages, retirement planning, tax and estate planning, and investing. Whether you have short-term financial needs or you want to enjoy your retirement years, personal finance is all about meeting your financial goals.
Your personal finance depends on your income, benefits, living requirements, expenses, and desires. It’s crucial to be financially literate to make the most out of your savings and income. It pays to make intelligent financial decisions.
Financial knowledge is your key to proper personal finance management. That’s why you need to equip yourself with the right financial information by reading reputable finance-related online resources. These resources provide helpful advice on saving, credit, building wealth, and using technology, such as Digital Honey personal finance blog.
- Build Your Retirement Investment Portfolio
Do you have an existing retirement investment? If none yet, then it’s about time to think about it. In this way, you don’t have to suffer financially once you reach your retirement years.
You can build your retirement investment portfolio by determining the best investments according to your finances and needs. The best retirement investments include the following:
- Gold Individual Retirement Account (IRA): It involves buying actual precious metals such as gold, silver, palladium, and platinum for your stockpile and transferring them to your depository for proper accounting with the help of a custodian.
- Cash Reserve: Invest in a relatively secure and liquid account such as a short-term certificate of deposit, an interest-bearing bank account, or a money market fund. In this way, your finance is ready if ever the market crashes or your monthly paycheck run into some issues. It’s also one way of sustaining your needs in the future without relying on personal loans.
- Bonds: Buying bonds can provide you a good return on your investment. A bond is loaning your money to the government or a corporation. It’s a steady retirement income.
- Real Estate: You can buy a home, flip a property, or rent out apartments and commercial spaces. Real estate income can help you sustain your retirement needs and enjoy your retirement years to the fullest.
- Learn And Practice Proper Budgeting
It’s important to review your weekly and monthly budget because your income changes after deployment. Take the time to assess your income sources against your expenses and bills. Track your spending by writing them down or using a spreadsheet or budgeting app.
Here are some budgeting tips you can try:
- Stick To A Budget: Assess your needs and wants and spend within your budget. Going overboard often results in more credit card debt. It also helps to cook and make drinks at home than call for meal delivery services or dining out in fancy restaurants.
- Avoid Loans: Don’t take out VA loans if you don’t really need them.
- Deal With Debt Early: Pay off your debt early to avoid accumulating charges like late fees and interests.
- Save: Saving money is non-negotiable. You can set-up automatic payments in order to add more money to your savings account (when still serving in the military) than spending too much on unnecessary things.
- Check Available Financial Assistance
Veterans deserve to have financial assistance for housing, medical expenses, and higher education. Don’t hesitate to take advantage of any available financial assistance you truly deserve.
Veterans looking for a new home don’t need to worry about putting a down payment because they can be eligible for a low-interest VA loan. If you’re a renter, you can seek assistance with rental patients through the government’s housing program for veterans.
Veterans who have been disabled or who belong to low-income families may be eligible for VA health care. You can contact your local VA office to determine your eligibility. Other health care assistance includes the Affordable Care Act for a low-premium plan to help veterans avoid medical debt.
Veterans are now more informed financially because of available financial services and resources. With the right information, veterans can plan and budget properly to meet their financial goals.
If you’re a veteran and you’re struggling with your finances, you can always seek financial assistance by contacting your local VA office. You can also talk to a financial advisor to help you decide on the best wealth-building retirement investments so you have peace of mind. It helps to know you can retire without worrying about your finances.