There is another Murph the military comes to know through the years, and he does not come with an Instagram worthy WOD. We're talking Murphy's law, the one that wreaks havoc on your government issued bank account.
Years of service and plenty of direct hits to the checking account later, a few of us have learned how to add a bit of financial padding to military life.
Here are 4 tips for disaster proofing your finances:
Quit going through cars like you go through (fill in the blank)
Car buying is a longstanding way to get screwed over as military personnel. Unlike the rest of the world, buying a vehicle for military life requires a whole new set of things to consider. Take this list into consideration before you go through cars like you go through…other things. Your savings account will thank you.
- Always go for AWD or 4WD.
It needs to drive well in Alaska, Arizona or the Alps. If it can't, you'll be forced to buy again at almost every post.
- Be prepared to ditch the second vehicle.
Shipping a second vehicle for OCONUS assignments means an average $5,000 out of pocket each way. Is it worth it? Probably not.
- Get to know the Military Lending Act
Every used car salesman will claim to be a retired First Sergeant, and every one of them cannot wait to strap you into an interest rate higher than your IQ score.
This is why we can’t have nice things
Government contracted movers are exactly why we can't have nice things. Before you buy, ask yourself: Will this survive being thrown off a moving truck? If the answer is no, buy something cheaper. In military life, you need to know the household goods to save or splurge on.
Tough boxes (splurge)
Investing in tough boxes is a smart way to keep things both organized and safer from moving-related damages. Use them to house everything from tools to your heirloom china dishes.
Everyday furniture (save)
Screws will get stripped, scuff marks will happen, and eventually, you will replace a fair bit of the goods you acquired. Save your investment pieces for things like mattresses or multifunctional pieces that can be utilized as a dresser or TV cabinet in the likely chance something won't fit or something else won't make it.
Quit buying houses like they are forever homes
Bold enough to buy a home while in the military? Spoiler alert, it's nothing like buying on HGTV. Whatever you buy better have universal appeal because two years from now it will be someone else's American dream.
The savvy military landlord knows to buy with these tips in mind:
- Choose something with rental potential.
- Your mortgage should be significantly lower than BAH and the potential rental income (think $300-$400 cheaper).
- Choose something that will be easy to sell.
Slap the twinkle right out of your eye when looking for homes to buy while serving. Your oddball taste or preference to live in a secluded cabin ten miles into the wilderness will quickly go from dream to nightmare once you're paying two mortgages after your one of a kind place didn't sell.
I’ve got the power…of attorney
Who knew a little document could do so much damage? Carefully and thoughtfully designating not just anyone as your power of attorney is a decision not to take lightly. Here's some basic left and right limits for your money.
Do- Put your money in more than one bank.
Don't- Give power of attorney to the stripper who is "a really good listener."
Do- Name an alternate or limit power if you aren't on good terms.
Don't- Give it away to your brand new girlfriend or boyfriend as a trust exercise.