CHARLESTON AIR FORCE BASE, S.C. –
I recently read a leading sports magazine claiming by the time many professional athletes have been retired for two years, they have gone bankrupt or are under financial stress because of unemployment or divorce.
To me, this is very shocking. It is not uncommon for professional athletes to be paid very well for their skills and talent over a period of many years. So, what went wrong?
If high-paid athletes in professional sports can fail financially, what chance does the average military member have to succeed in planning for retirement?
The magazine article explained several reasons behind financial ruin, including lack of financial knowledge or awareness, lack of financial discipline and too many debts or lingering obligations.
While not as prevalent in the military community, these same culprits are present and threaten our success in active or Reserve duty and retirement.
A lack of financial awareness and discipline can lead to poor spending habits. Rather than worrying about all the technical aspects of making your money work for you, it may be easier and much more fun to just go and spend. Whether you invest by yourself or with the help of a trusted advisor, the most important thing is that you spend less than you earn.
While this sounds almost comically simple, it is a good start some people overlook. Perhaps try saving a predetermined amount to a savings account. It is important to be disciplined enough to dedicate money for savings, investments or preferably both. If your plan is to merely save whatever happens to be left in your account at the end of the pay period, you may need a new plan to be successful.
Building financial discipline is up to you. To help you, the Air Force has programs available through the Airman and Family Readiness Center to gain the financial awareness you need.
Although most military members aren't encumbered with the paychecks to live the lavish lifestyles of some professional athletes, we can still fall into the trap of living beyond our means.
Military bonuses, promotions and deployments can be a great way to save, invest or pay down debt, but all too often these windfalls are used for down payments on ... you guessed it, more debt. So, instead of making progress on the road to financial freedom, we use extra money to take a step back. Does that make any sense?
This summer, the Military Saves program, a social marketing campaign to encourage military families to save money every month, is concentrated on helping members get out of debt and avoid consumer temptation, while living within their means.
Many in the military already know and live by the concepts the Military Saves program teaches, alleviating themselves and their families of unneeded financial stress.
Of course, most professional athletes are good role models on the field, but the financial habits of some may not be a good example of that. Taking the Military Saves pledge today, can ensure we avoid the same unfortunate fate tomorrow.
Visit their Web site at www.militarysaves.org. It is full of tips and common sense advice on money management to help you make the most of every dollar, every day.