Take a time-out to think about your finances

  • Published
  • By Lt. Col. William Lorey
  • 48th Contracting Squadron commander
ROYAL AIR FORCE LAKENHEATH, England --  I've heard that the shortest measurable interval of time is the time between the moment one puts a little extra money aside for a sudden emergency and the arrival of that emergency. 

August is National Investors Month; it's a good opportunity to take stock (pun intended) of how you stand financially. Hopefully, your review doesn't turn into an evening of despair as you realize you're overextended and operating in the red. 

Fortunately for me, when I was new to the Air Force, I had a cube-mate who was very knowledgeable about investing. He wasn't pushy about it and he didn't propose that I invest every discretionary cent I earned. He proposed three simple things: monthly allotments, minimize/delete debt and save for big-ticket items. Over the years I've seen these themes repeated again and again in articles and financial briefings.
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n the Air Force, financial responsibility is not just nice to have; it's pretty much an expectation and it directly affects one's readiness. In today's environment of weekend calls telling you you're deploying on Monday, you have to be not only financially stable enough to handle this, you need to be prepared to pay bills on time and account for purchases correctly. 

Airmen who can't get control of their finances risk not only personal frustrations, but continued problems can lead to disciplinary actions affecting your career. As a representative of the U.S. government, all of us are under a microscope when it comes to money - taxpayer money. What this means is that we all have to be financially responsible all the time; not only with our personal spending habits, but with that Government Travel Card in your pocket or a Government Purchase Card if you happen to have one. 

So here are a couple of tips on how to avoid problems and set yourself up for success. 

First and foremost, if you have either of the government cards, follow the rules on using them! Fortunately for you, they don't give me enough space here to cover all the rules, be we all get trained on the do's and don'ts. If you have questions, ask the experts. Don't ever take the risk of using your official government card for personal use; this is one of the quickest ways to get some unwanted face time with your commander. 

That's the easy one - your personal finances can be much more challenging. There aren't built-in reviews in place to help you as much; you have to set up your own system. If you choose to "float a check," no one is going to stop you. But actions like these can start you down the road of problems. To avoid this, you need to have a safety net when things go bad or when unexpected expenses pop up. Investments are a great help in this regard and can give you the flexibility to make the good decisions rather than having to operate in a grey area. Let's go back to my friend's rules. 

If you haven't already done so, start a monthly allotment toward something. Whether it's the Thrift Savings Plan, an IRA or some other investment, time is the biggest factor when it comes to building value. Second, make sure you're controlling your debt by paying off high-interest items, keep control by not buying new things until you have a good portion, if not all, of the amount saved. 

You'll find that like a flywheel, once you get the investment train moving, it takes on momentum of its own. Your ability to afford more of what you want, the satisfaction that comes with being able to set up your family for the future or just being able to cover your government debts when necessary, all becomes much easier. You need to accept responsibility for your choices - focus not merely on immediate short-term comfort, but on long-term prosperity and peace of mind.