Financial Redeployment

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Financial Redeployment
Living on a Plan Monthly Budgeting Using Credit
Wisely Redeploying Financial Issues
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Agenda

• Living on a Plan Monthly Budgeting
• Why we budget
• What we budget
• How we budget
• Using Credit Wisely
• Good credit history vs. bad credit history
• Examples for building good credit history
• Warnings about building bad credit history
• Interest rate reality
• Redeploying Financial Issues
• Withdrawing from Deposit Savings Plan
• Filing income tax extensions
• Helpful websites

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Living on a PlanMonthly Budgeting
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Living on a Plan Monthly Budgeting

• A modest spending plan
• Helps ensure that money is available to meet
  needs
• Gives a sense of empowerment
• Helps keep an eye on the goal Financial Security

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Living on a Plan Monthly Budgeting

• Factors to consider
• How much money is earned
• How much is needed to pay bills and satisfy needs
• How much should be saved

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Living on a Plan Monthly Budgeting

• Create a monthly budget that complements income,
  lifestyle, and future goals
• Gather copies of bills and pay statements
• Write down the amount of monthly take-home pay on
  a blank piece of paper and make three separate
  columns
• fixed monthly expenses
• periodic fixed expenses
• variable living expenses

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Living on a Plan Monthly Budgeting

• Fixed Expenses are
• Rent or Mortgage
• Car payments
• Loans
• Child Support
• Education and Childcare
• SAVINGS

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Living on a Plan Monthly Budgeting

• Periodic Fixed Expenses are
• car insurance
• life insurance
• homeowners insurance

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Living on a Plan Monthly Budgeting

• Variable Living Expenses are
• Groceries
• Utilities
• Dining out
• Clothing
• Gas, transportation fares, parking
• Recreation and personal care
• Money should also be stashed away for
  emergencies.

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Living on a Plan Monthly Budgeting

• Add up all the expense categories into one
  monthly expense category
• If the amount is higher than monthly take-home
  pay, expenses will need to be adjusted
• Thrifty cooking meals at home and taking lunch
  instead of eating in restaurants)

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Living on a Plan Monthly Budgeting

• Retirement Savings If you invested
• Principals will vary according to when you began
  investing in your retirement
• Monthly Savings for IRA 167
• One Year Total Contribution 2,000
• Ten Year Total Contribution 20,000
• 7 Interest at age 65 257,686
• 9 Interest at age 65 522,090
• 10 Interest at age 65 740,298

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Using Credit Wisely
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Using Credit Wisely

• Good credit vs. bad credit
• Building good credit
• Building bad credit
• High vs. low interest rates
• Compound interest at a very high rate
• Minimum payments

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Using Credit Wisely

• Buy Now, Pay Later
• Used wisely, credit can help consumers meet goals
• Build a positive credit history
• Buy Now, Not Pay Later
• Used unwisely, builds a bad credit history
• Destroys financial future

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Using Credit WiselyBuilding a Positive Credit
History

• Buy Now, Pay Later
• Apply for a small loan at a bank, pay it back on
  time
• Buy something through a layaway program and pay
  it off quickly
• Apply for a credit card/charge account at a local
  store, charge several items and pay them off as
  soon as the bill arrives
• If accounts are shared with a spouse, ask
  creditors to report credit history information
  under both names

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Using Credit WiselyWarnings about building bad
credit

• Buy Now, Not Pay Later
• Continuing to spend
• Spending more than you make

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Where do you standInterest Rate Reality

• Buy Now, Pay Later
• What would you pay for Interest each year?

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Redeploying Financial Issues Withdrawing Savings
Deposits

• To receive funds, Soldiers can mail a written
  request to
• Include in your request
• Name
• Social Security Number
• Branch of Service and Component (Active or
  Reserve)
• Start and Stop Dates of Tour
• Amount Requested
• How requested funds should be distributed (via
  check or electronic funds transfer to bank
  account)
• Telephone Inquiries 1-800-624-7368 or (216)
  522-6545

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Redeploying Financial Issues Filing Income Tax
Extensions

• 180 day extension for filing tax returns, paying
  taxes, and claiming refunds
• Armed Forces Tax Relief Booklet
• IRS Publication 3, Armed Forces Tax Guide
• Tax Exclusion
• Tax Relief
• IRS Customer Assistance
• To order Armed Forces Tax Guide
• Visit www.irs.gov/formspubs
• Call 1-800-829-3676
• IRS Customer Service
• 1-800-829-1040

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Redeploying Financial IssuesHelpful Websites

• Thrift Savings Plan
• www.tsp.gov
• MyPay
• https//mypay.dfas.mil/mypay.aspx
• MyArmyLifeToo
• - www.myarmylifetoo.com
• Military Onesource
• www.militaryonesource.com
• (User name military password onesource)
• Veterans Benefits Administration
• www.vba.va.gov