What you don’t read about is how the current economic crisis affects America’s Armed Forces. The truth of the matter is, in light of the unstable economy, some Soldiers are not feeling the full effects of the recession. This can be mainly attributed to one key factor: job security.
“The job security is awesome. We always have a steady pay check. You don’t have to worry about getting fired or laid off because we’re always needed,” said Spc. Anthony Madden, a signal systems support specialist with Headquarters and Headquarters Troop, 2nd Brigade Combat Team, 4th Infantry Division.
Madden, a 25-year-old native of Columbus, Ohio, has been in the Army for more than two years and believes the extra perks of being a Soldier go a long way to increasing financial security.
“The benefits are real nice, too. We don’t have to worry about medical, dental or retirement. The Army takes care of all that so, financially, it’s a real good deal,” he said.
Maj. Jackie L. Thompson Jr., brigade staff judge advocate for 2nd BCT, 4th Inf. Div., believes the Army’s assistance to pay for higher education was the first step to his financial success.
“The military has benefited me in that I have not had to pay for any schooling, so the student loans and debt associated with them … I didn’t have to worry about,” he said.
Thompson, a native of North Chicago, Ill. and a career officer of 19 years, experienced financial hardship long before the current crisis dominated television and news headlines.
“My father was laid off from his job when I was in college. I had to watch him go from $40,000 a year to working for a little under $7 an hour. I decided that I didn’t want to find myself in that same circumstance,” he said.
Thompson also believes that even though the current situation is dire, the future looks optimistic.
“There are a lot of people in distress, but I think our markets are resilient enough to recover,” he said.
Although some Soldiers feel relatively safe from the economic crisis, nearly every one of them can be a victim of their own spending habits.
“It’s too easy to get into credit card debt, but (Soldiers) have to learn to live within their means. When I was married, my wife and I used to run up credit cards and bought a new car. I learned to get better with my money and I paid off the debt,” said Madden.
“Paying off your debt is important because all the saving in the world doesn’t matter if you’re paying 17 or more percent on a credit card,” Thompson added.
Another big benefit for Soldiers is being deployed gives them ample opportunity to save for a rainy day.
“Saving money in the military is not just a choice, it’s a lifestyle choice. Most Soldiers only get paid on the first and 15th of the month,” Thompson said.
“I move some of my money into my savings, leaving only what I need. I paid off all my debt, so now I’m debt free. I’m also studying the stock market, because now is a good time to invest,” Madden added.
In addition to commercial banking and investing, Thompson thought highly of several programs that are exclusive to service members.
“The Thrift Savings Program has been a wonderful tool for my success. If a young Soldier were to invest in it since the beginning of their career, then they could gather a lot of money. The Savings Deposit Program is also beneficial because no one can produce a 10 percent return on your money right now,” he said.
When it comes to long-term financial planning, Thompson takes a very old school approach; just stay in.
“I believe that every Soldier can be a millionaire. Many Soldiers don’t understand when I say that. When you think long term and when you retire and you’re receiving 50 percent of your base pay for the rest of your life, how much can that add up to?” he said.
Although Madden hasn’t raised his hand to reenlist just yet, he believes the economy would be a huge factor in his decision to stay Army.
“If I stay in, the economy would be a big factor. I want to work and be productive. If I do decide to get out, I’ve been saving my money now because there’s no promise that I can get a job when I get out and I want to be prepared,” he said.
Although neither Madden nor Thompson claim to be financial ‘gurus,’ they both offer some valuable advice for Soldiers concerned about their own financial security.
“Watch your money and really pay attention to what you spend your money on,” Madden said.
“If a person needs financial advice, I recommend they see a certified financial planner so that they can receive the appropriate information,” Thompson added.
