Members of the military are trained on accountability, sacrifice, discipline and flexibility. These qualities can very well be applied in making smarter decisions about your money. Steve Repak, a certified financial planner and author of Dollars & Uncommon Sense: Basic Training For Your Money, listed some tips on what you can do to win your financial battle:
Take responsibility and be accountable. A leader is responsible for accomplishing the mission so be ready to take responsibility for your actions to become successful leader. Nobody is going to manage your money better than you. Keep a regular record of your income and spending so you will know where your money went and if you are making smart spending decisions. You must have the determination and ability to take charge of your finances in order to succeed.
Be honest. Honesty is the best policy. In the military, this applies to how you treat your leaders and your subordinates. Honesty allows for better assessment and personal growth so be honest and take the same approach to your finances. Identify your weaknesses, say if you are living beyond your means, and do better by cutting back on your spending. Start saving more if you aren’t saving enough.
Prioritize. Sometimes leaders have several goals. Learn how to prioritize your goals to accomplish your mission. With so many things on your mind, managing your finances can take the backseat. But your financial situation will not change until you decide you want it to change. Make it a priority to get your finances on track by setting aside time each week to work on them.
Sacrifice. Our military makes sacrifices every day by putting their lives on the line. There are times when you need to make some sacrifices to get your finances in order. A $4 cup of coffee doesn’t sound extravagant, but if you buy one every day, you can rack up a $120 coffee bill in a month. Identify other areas where you could cut back. Embrace sacrifice and don’t dwell on what you have to give up now. Instead, focus on how you will use the money you have saved and how it will relieve your financial problems.
Plan. As leader, there are times when we have to identify where we are, where we need to go and how we are going there. These same planning steps can be applied to charting your finances. For instance, you need to determine where you are starting from financially (your income versus your spending), where you want to go (how much extra do you want to have in savings at the end of the month), and the steps to get there (the areas where you are spending your money that you can either reduce or eliminate). Put every detail in writing.
Work as a team. To improve your chance of success, consider getting the advice of a financial planner. (See “How To Pick A Financial Advisor.”) Work together to identify your financial goals and develop a plan to help you achieve them.
Be flexible. In the military, there are times when you are required to be extremely flexible as objectives and missions do change. In your financial decisions, be ready to have alternatives and be flexible to make adjustments in your financial plans as needed.
KISS. This stands for “keep it simple stupid.” In the military, you learn not to make things harder than they actually are. The same goes for your finances. If you are spending more than you are making, you need to start cutting down on unnecessary expenses.
Don’t lose your determination. Keep the ”war fighting spirit.” Soldiers know that determination is vital to accomplishing a mission. Anything worth having in life is worth fighting for. Don’t believe anyone who promises short cuts or easy solutions as there aren’t any.
