Planning helps financial future

  • Published
  • By Gary Boyle
  • Ogden Air Logistics Center Public Affairs
HILL AIR FORCE BASE, Utah (AFPN) --  For young airmen, the future can seem too far away to deal with now; however, many have learned that their decisions today have a great effect on their lives ahead. This is true especially when it comes to finances, according to the personal financial manager here.

Dottie Blesse talks to young airmen on topics ranging from how to balance a checkbook to investing for retirement. She offers a few helpful tips for financial success.

"It's important to commit to a home financial plan and then stick to it," said Blesse. "Create a savings plan and put yourself in it. Treat savings like a bill you pay every month, like you would a car payment."

A recent Department of Defense report indicated servicemembers through E-6 have trouble making ends meet. It attributes this not to income levels but to poor spending habits and financial education, Blesse said.

Additionally, an Air Force survey showed that people in the ranks of airman first class through staff sergeant, comprising half of the Air Force, applied for 78 percent of Air Force Aid Society assistance. They also received 76 percent of the nonjudicial punishment for indebtedness.

"If you have a $5,000 credit card debt, it would take you 22 years to pay it off if you made the minimum payments and never used that card again," Blesse said. "Interest costs money.

"In this age of instant gratification, it's important to have self-control,” she said. “Keep a low credit-card limit and pay it off before you use it again."

Payday loan and rent-to-own operations provide seemingly easy ways for airmen to get and spend what they want in between paydays, but at a steep price, Blesse said.

"Rent-to-own can be as much as 265 percent over cost. I ask in my briefing how much people think a microwave costs, the answer is usually anywhere from $50 to $100. I had counseled a couple using rent-to-own terms, and we figured their microwave would cost them $800," she said.

Blesse encourages airmen to visit a family support center financial planner when money troubles begin, not when creditors are at the gate. (Courtesy of Air Force Materiel Command News Service)