Budgeting plays a vital role in financial readiness helping Soldiers align income with expenses and savings goals to provide long-term financial security. To support Soldiers and their Families, the Army offers tools designed to promote informed financial decision-making.

Effective budgeting serves as a road map for managing finances, helping Soldiers take control of their money and make intentional decisions about their financial future.

“A spending plan is an excellent tool for outlining your income and expenses, covering everything from bills and debt payments to retirement contributions,” Robyn Alama Mroszczyk, Deputy Chief of Staff, G-9 Financial Education program manager, stated.

Here are some tips to guide Soldiers in developing a spending plan that aligns with their priorities and future aspirations:

Assess your current financial situation. Knowing where your money is going now can help you determine whether these expenses need to remain as is or adjustments are needed. Review your various bank and investment accounts, your debts, employer benefits, insurance and your income.

Define your financial goals. These goals might include paying down debt, buying a home, or saving for retirement or college tuition. What is important to you? Develop a plan to meet your goals and prioritize them accordingly.

Build spending habits. In addition to reviewing your regular monthly expenses, talk about your spending habits when it comes to flexible expenses like entertainment, dining out and clothing. Create a spending plan that you are comfortable with.

Focus on saving and investing. With your goals in mind, how much money do you want to put away each pay period or month to strengthen your financial situation? Think about how much risk you would be comfortable taking, and whether you want to use a financial advisor or take a do-it-yourself approach.

Begin planning. Develop a plan to pay bills and build your savings. Your plan should include who will be the primary money manager in case of training or deployment.

“You can plan to decrease spending on some items and use the extra money to pursue goals such as paying down debt or saving for the future,” Mroszczyk advised.

For more resources, visit Financial Frontline or DPRR: Financial Readiness.