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The Hidden Costs of Your PCS

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Money. You need it, often we feel we don’t have enough of it, and it requires almost constant management. Stir in a PCS and relocation and you’ve got the recipe for some of the unique challenges only members of our community will understand. But like many other things, a shared commiseration gives us the opportunity to share and learn from each other.

Having been through more PCSes than I can count on 2 hands, I’ve learned the best tool we have at our disposal is pre-planning. Good old Uncle Sam pays the movers to come and box everything up and move it, but there are lots of hidden costs that can put a strain on a family budget. Here are 3 hidden costs and strategies for overcoming them.

THE PROBLEM: EVERYDAY HOUSEHOLD SUPPLIES

You can’t move liquids (with the rare exception), chemicals, and open food items. This often means that just before a PCS, we’re tossing all kinds of cleaning supplies and emptying the refrigerator of things like ketchup, mustard and salad dressings.

Talk about feeling like you are literally throwing money in the garbage.

And once we arrive, those items must be replaced in a hurry.

SOLUTION: Plan ahead if you can. If you know you are due for a PCS, even if you don’t have orders, try to anticipate. Plan meals that will use up the last of that bottle of ranch dressing and buy smaller bottles of household cleaners. Yes, it might cost a little bit more than buying the family size, but in the end, you won’t end up having to throw away half a bottle.

Once you arrive, try to shop sales and buy in bulk to lower costs. Also consider easing into replacement items. A solid multi-purpose cleaner can hold you over for a few months to help spread out costs and a little meal planning helps to do the same for those refrigerator staples.

Also, as you get ready to PCS, consider selling items you don’t need or want. Use that extra money to help offset some of these hidden relocation costs.

THE PROBLEM: HOME SALE/RENTAL DEPOSIT

You’ve got to put a down payment or deposit down on your new home, but you haven’t closed on a sale or received your last deposit back.

SOLUTION: This one is a little trickier, but again, the key is to plan ahead if you can. Anticipate the overlap in timing by putting a little money in your savings account each month leading up to a PCS. It is much better to have extra money saved then to be caught between paychecks without the funds you need.

You may want to consider taking a pay advance to help cover those large ticket costs, just make sure you plan your follow-on budget appropriately until the advance is paid back.

THE PROBLEM: THE FURNITURE DOESN’T FIT

You did the research, waited for a sale, and landed the perfect couch or set of curtains. Enter a set of PCS orders and a new temporary home. And of course, nothing fits in your new house.

Solution: We learned this lesson the hard way, so my advice? Buy modular furniture as much as possible.

That doesn’t mean you have to buy cheap, just buy smart. Also, before you pack up all that furniture, take some good measurements. Then when you are checking out potential new digs, take some quick measurements to see if what you have will work.

I’m not saying to pick a house to fit your furniture, but if what you have won’t work at all (ask me about the on-post house that wouldn’t allow for us to get a queen-sized bed upstairs!), the cost of replacing furniture might be worth some consideration.

Don’t be afraid to check out consignment and thrift stores, especially those around military housing areas. You’re not the only one struggling to make that new house feel like a home and chances are you can secure some gently used pieces at a killer price.

What other PCS costs have you experienced? What tips can you offer to help offset those relocation costs?

8 Financial Stressors Military Couples Face and How to Overcome Them

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There are many things that set military couples apart from civilians, but financial stressors we all share. Sure military families have different financial stressors than civilian families, but they are there nonetheless.

Here are 8 financial stressors military families face and how to overcome them.

8 Financial Stressors Military Couples Face and How to Overcome Them

Not Agreeing on How to Handle Finances

Most couples are made up of one spender and one saver. This can be great as the saver can keep the spender in check and the spender can get the saver to live a little. When a couple can’t decide together how best to handle money, financial stressors occur.

To overcome this, sit down and talk to each other. Set aside time when children are not around and there are no interruptions so that you can have a serious financial discussion. Don’t leave the table until a decision has been made.

Not Communicating

Communication is key in a healthy relationship. If you are not being honest with yourself or your spouse about spending, more financial stressors will occur.

Do you hide shopping bags in your car until your spouse isn’t home so they don’t see how much shopping you’ve done?

Ask yourself why you feel the need to do so. Did you spend more than you should of? Are you worried they will be upset with you for this?

Not Creating a Budget

Forget financial stressors, money-conscious couples that set budgets have less stress. Knowing how much money is coming in and going out will bring relief.

Knowing that you have enough money to pay all the bills by allocating money each month will set fears aside. As a couple, decide how much money you want to save and how much you’re comfortable spending each month.

Putting Off Saving for Retirement

When you’re young and facing bills, saving for retirement might be the last thing on your mind. Savvy savers know that saving now for retirement can alleviate financial stressors. You can contact a financial planner, attend a saving for retirement seminar or do your own research.

The sooner you start saving for retirement, the better off you’ll be when the time comes.

Not Having an Emergency Savings

It is recommended to have an emergency fund with the greater of either 2 weeks’ worth of pay or $1,000. You can use an emergency fund calculator to determine the right amount that your family should save. When an unexpected event occurs that brings in a large bill, financial stressors arise. Help lower the stress by having a plan already in place.

Taking on More Debt Than You Can Handle

You and your spouse need to be realistic on what you can afford. Keeping up with the Joneses is what gets military families into trouble.

If you can’t afford it, don’t buy it.

Just because your neighbor has a new car or put in a pool does not mean that you need to do the same thing.

How many financial stressors do you need in your life?

Is trying to keep up with the social status of your neighbors or friends worth the burden?

Be realistic with your wallet. If you can’t afford the payments on a new car, maybe you don’t need such an expensive one.

Struggling with Finances on Your Own During a Deployment

When your spouse is deployed and you are unable to communicate immediately or even frequently, financial decisions are often made on your own.

It can be extremely frustrating when financial stressors arise during a deployment. You don’t have your significant other to help you make a decision and are forced to deal with it on your own.

Setting time aside before your spouse deploys to discuss what to do in this instance can help significantly.

Not Expecting a Baby to Change Your Finances Dramatically

If you don’t have children yet, you might not understand this but it is true. Children are expensive. The more you have, the more it will cost you. Having a child unexpectedly can create financial stressors if you aren’t prepared. Not everyone gets the opportunity to plan ahead for a growing family, but if you are able to plan financially for your little one, life will be a little easier.

Which of these financial stressors is your military family facing? How are you planning to overcome them?

Military Savings for Tax Time

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Military couples don’t have to spend money on tax preparation software. There are plenty of free and discounted options available for service members, military spouses and retirees.

Here is a list of military savings for tax time.

Volunteer Income Tax Assistance (VITA) Program

Have you heard of the Volunteer Income Tax Assistance (VITA) Program? This program operates free tax preparation centers at military installations around the world. The VITA offices are open to active duty service members, including National Guard and Reserves, military dependents and retirees.

Since the Armed Forces Tax Council partners with the IRS for this program, volunteers received IRS certified training. They are ready  to help military families with tax preparation and answer common tax questions at these centers.

VITA is a great option for young service members who need help filing their taxes.

If you are planning to e-file your taxes at a VITA office, bring the following documents to your appointment:

  • Valid photo identification
  • Social Security cards for you, your spouse and dependents.
  • Birth dates for you, your spouse and dependents
  • Your wage and earning forms, such as Forms W-2, W-2G, and 1099-R.
  • Interest and dividend statements (Forms 1099).
  • A copy of your last year’s federal and state tax returns, if available.
  • Routing and account numbers for direct deposit of your tax refund.
  • Total amount you paid for day care and the day care provider’s identifying number. This is usually an Employer Identification Number or Social Security number.
  • Other relevant information about your income and expenses.

If you are married and filing a joint return, both of you need to sign the return.

What if my service member is on deployment?

If your service member is on deployment, you have a few options. If there’s a VITA site at their location, they can e-file their taxes there.

If you, as the military spouse, plan to file a joint return, bring a valid power of attorney when doing your taxes. The IRS recommends using Form 2848, Power of Attorney and Declaration of Representative when completing your taxes.

If your service member is in a combat zone, the military spouse can file a joint return with “a signed statement explaining that the other spouse is in a combat zone and unable to sign,” according to the IRS.

Click here to see the list of Volunteer Income Tax Assistance offices around the world.

“MilTax” Software Available Through Military OneSource

If you feel confident that you can complete your taxes online, consider e-filing using Military OneSource’s free filing service, MilTax. This service allows military members to complete and electronically file federal and up to 3 state tax returns, according to Military OneSource.

If you have questions about this tax service or about your own tax returns, please call 1-800-342-9647 and ask to speak with a Military OneSource tax counselor. Trained tax counselors are available 7 days a week from 7 a.m. to 11 p.m., EST. For online assistance with questions about deductions, exemptions and filing deadlines, send inquiries to TaxQuestions@militaryonesource.com.

This service is available to active duty, National Guard and Reserve, and spouses. Users must create a free account with Military OneService before taking advantage of this military savings.

TurboTax Military Edition Software

Active duty and reservists, who are USAA members, can get TurboTax Deluxe Online Federal for free. All USAA members can save up to $20 on TurboTax federal products.

Visit USAA’s website for more information the TurboTax Military Edition Software.

Did we miss any other tax preparation services that offer military savings? Tell us about it in the comments section.

Military Savings at the Movies

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Between tickets, drinks and snacks, a night at the movies can really add up!

In some locations, tickets to first-run or special movies, like 3D or IMAX, can be upwards of $15 per person. A small popcorn is usually closer to $10 than to $5 and drinks are both giant in size and cost.

Military Savings at the Movies

What are your tips for military savings at the movies?

Luckily there are military savings to help you cut costs and still enjoy a fun day at the movie theater with your family.

Military Savings on Movie Tickets

The 4 major cinemas all offer military discounts. Don’t forget to show your military ID card when asking for a military discount.

  • Cinemark offers military discounts at several theaters. For specifics on discount times and amounts, contact the cinema closest to you.
  • Regal also offers a military discount. The discount amount and times that the discount is offered vary by location. It is recommended that you contact your local theater.
  • There is also a military discount at AMC theaters. The discount varies based on location and is only available after 4 p.m.
  • Showcase Cinemas has military tickets available at many locations starting at $7.50 for general admission and $5.50 for matinee and children’s tickets.

Military Savings on Movie Tickets Purchased at ITT

Beyond amazing trip packages and tickets to the big game, your on-base ITT (Information, Tickets and Travel) office also stocks discounted movie tickets. Like the cinema-run discounts, these military savings will vary by location.

Most bases offer passes that can be exchanged at the theater for tickets. There may be a few deal breakers, though. These passes might only be valid during certain times, for certain types of movies (regular vs 3D) and you might not be able to be used these discounted tickets on opening night or weekend.

So before you set your plans in stone, check the fine print!

Watch Movies at Your On-Post Theater

Watch a movie on base and save beaucoup bucks. Military theaters are located on most major installations.

Some locations have special screenings of popular films that have been previously released. Often these showings are free or very, very cheap.

Other locations show first-run movies around the same time they are released nationally. Tickets are heavily discounted (compared with a civilian movie theater) and so are the snacks.

When you see a movie on base, be prepared for things to be a little bit, shall we say, different. Before the movie starts, get ready to stand while the National Anthem is played. You might also want to bring a cushion. The seating tends to be on the uncomfortable side.

Showings and runs of films are very limited. If you find a time for a movie you want to see, you should go. It might not be playing next week or even tomorrow!

Check your local base theater’s schedule for show times and special events.

Sign Up for a Theater Loyalty Program

Another great option is to sign up for theater loyalty programs. These work like other retail shopping cards: the more you go, the more points you earn and the more freebies you get. Different theater chains offer different perks, but items can include free snacks or drinks and even cheaper movie tickets.

While some theater chains only offer discounts for evening shows, other theaters might be willing to combine discounts. By going to a matinee showing in the late morning or afternoon, you might be able to save even more. For theaters that don’t double dip the discount, these early showings are usually several dollars cheaper. That makes it a smart budget choice.

No matter where you live or what movie you want to see tonight, there is probably a military discount available to you! Be sure to check around before you head out the door so that you get the best deal.

What are your tips for military savings at the movies?

Amendment to Reimburse Recertification Costs

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Recertification costs due to PCS can really add up for military spouses that are employed in a career field that requires state licensing or certification. Two senators are working to get some of that money back to military spouses.

Senators Bob Casey (D-Pa.) and Jerry Moran (R-Kan.) have been trying for years to get a tax credit for military spouses that have had to pay fees for licensure and certification when they PCSed with their service members.

Senators Introduce Amendment to Reimburse Military Spouses’ Move-Related Recertification Costs

Two senators have proposed an amendment to the defense bill that would reimburse military spouses up to $500 for the costs of re-licensure and re-certification.

Military spouses earn 38 percent less than civilians according to a recent report, due to the hardship of constantly moving. Many spouses experience a length of unemployed or become underemployed because jobs that require licensing or certification are state specific.

Recertification costs can be more than military families can afford, especially with frequent moves.

Senators Casey and Moran are hoping to ease that burden with a tax credit to military spouses to cover recertification costs. They have proposed an amendment to the defense bill that would reimburse military spouses up to $500 for the costs of re-licensure and re-certification that stems from a Permanent Change of Station (PCS) to a another state.

Reimbursement for recertification costs would include:

  • Application fees to a state board, bar association or other certifying or licensing body.
  • Exam fees and registration fees paid to a licensing body.
  • Costs of additional coursework required for eligibility for licensing or certification specific to the state, not including the cost of continuing education courses.

Limitations include:

  • The total amount of reimbursement for recertification costs cannot exceed $500 per PCS.
  • Eligibility for reimbursement of recertification costs for spouses would not be limited by the pay grade of the service member.
  • Reimbursements would be distributed quarterly.
  • The cap on the reimbursement program would be $2 million a year.

There are more than 860,000 military spouses and only 55 percent of them were in the workforce in the past decade. If this passes, it would give many spouses the opportunity to continue their careers after relocation.

The government would also benefit from the program as a recent study by Blue Star Families showed. The report stated that it costs the U.S. economy between $710 million and $1.07 billion annually in lost tax revenue, unemployment benefits and health costs because so many military spouses were not employed in career fields that they otherwise could be without the hardship of moving.

These two senators are working to get recertification costs reimbursed to military spouses so that they can get back in the career field of their choice. This simple act of reimbursement can actually have a huge impact on the economy, as well as at home for military families.

Luckily, they are not the only ones fighting for military spouses. First Lady Michelle Obama and Dr. Jill Biden started a campaign in 2011, known as Joining Forces, to make it easier for military spouses to gain employment in portable carriers.

They also saw the struggle that military spouses faced with PCSing, especially with recertification costs. Together, they urged governors in every state to take action, whether executive or legislative, to make state licensing for military spouses easier. This month they announced that all 50 states have created a way to help streamline the process of licensing and credentialing military spouses.

The Department of Defense along with state legislators and regulators has developed 3 ways to help military spouses transfer licenses: licensure through endorsement; temporary licensure; and expedited processes for issuing licenses.

Licensure through endorsement can be difficult for military spouses, so a best practice has been developed that allows spouses to show their competency in their occupation through various methods determined by boards such as recent experience and continuing education units.

Temporary licensure is offered by many states that allows military spouses to enter employment while completing state requirements or while awaiting verification of current license, certification or employment history for an endorsement.

An expedited process for issuing licenses is a quick way to get spouses back in the workforce. States have varying ways in which they expedite the process. Washington, for example, allows a board to approve a license based on an application certified by affidavit.

With recertification costs keeping many military spouses out of the workforce, hopefully these initiatives will be able to get them back into it.

How much have you spent on recertification costs when you moved as a military spouse? Share your story in the comments section.

How to Make Money with a Personal Procured Move

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I have a confession.

Although I didn’t enjoy my last PPM (personal procured move, formerly called a do-it-yourself or DITY military move), my husband and I banked a lot of money by during it, which made every roadblock (sometimes literally), headache and painful mile worth it.

How to Make Money on a Personal Procured Move

Have you made money with your personal procured move?

When you’re doing a personal procured move, you need to first understand your PCS entitlements. They differ from move to move and branch to branch, so take a close look at your orders to figure out what you need in your military move.

Before you go forward with finalizing your personal procured move, contact your local Travel Management Office (TMO). They are essential in guiding you through the process and giving you everything you need for a successful PCS.

No matter what you end up deciding to do for your military move, you will most likely receive a travel per diem, dislocation allowance and Monetary Allowance in Lieu of Transportation (MALT), if you choose to travel with your privately-owned vehicle (POV).

You could make some money by being smart with your dislocation allowance and travel per diem. When we PCSed from New York to Arizona, we stayed with family members located at 2 different locations (Texas and Mississippi) and utilized hotel points on our other stays that added up to free future hotel visits.

That same military move, we did a partial PPM. We packed up our car with as many goods as it could fit and we were paid money based on the weight and mileage. If you opt for a partial PPM, be sure you fill out all the appropriate forms and file for it. You need to do the same if you choose to do a full personal procured move. Pay close attention to the rules and regulations regarding weighing your car. The rules may have changed since the last time you PCSed.

With a full PPM the government will pay you 95 percent of the total cost it would be for them to take you from point A to point B. Still interested in doing a PPM? Here’s what you need to know.

What’s needed to make money with a personal procured move or PPM?

  • Packing Supplies
  • Moving Truck
  • Labor

I’m going to talk about my last personal procured move and share with you what worked for us. I’ll start with the packing supplies.

I raided local retail stores around my home for boxes from shipment days. (Don’t be afraid to ask the manager of your military commissary for shipping boxes!) Be sure you plan for time to collect your packing supplies far enough in advance and have an area in your home to put these boxes. I was able to acquire enough to pack all of our household goods. I saved money by not buying any moving boxes.

Another successful strategy would be putting a call-out for boxes on a military spouses Facebook page. I’ve seen lots of boxes get recycled that way as well. That strategy costs nothing, but time and effort!

Next, we priced out all possible moving vehicles. Luckily, most companies like U-Haul and Budget offer military move discounts! With all the labor accounted for (I’ll elaborate on that later), being able to lock in an amazing deal for a moving truck was key.

Of course, we took a little bit of a risk with this one, but we used our own clothing and other fabrics to pad and pack our breakables in the boxes. Once the boxes were sealed, we indicated what was inside them so that we could be gentler with that box over the other ones. It was my husband, myself and a friend moving boxes and furniture, so we only had ourselves to blame if anything broke. We rented the furniture pads to help with the bigger items.

Because labor was my husband, myself and a friend, it was absolutely free! Well, I did pay our friend in food, but that was it. Once we arrived at our new location, it was up to us to unpack the moving truck, but we took our time and unloaded it over the course of 2 days (we paid to have the rental truck for an extra day).

In addition, I’ve seen some military families successfully move with hiring help too. For example, they would hire the labor to pack the furniture and boxes properly in a truck that they rented. It was up to them to drive the truck to the new location and they hired another team to unload it.

Another family used a PODS-type moving system for their military move and I believe that company offers a military discount as well.

Have you made money with your personal procured move in the past? What tips do you have for making money on this type of DITY move?

Good Financial Habits Create Peace of Mind

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During February 22-27, the nonprofit called America Saves promotes Military Saves Week to encourage military families to save money, reduce debt, and build wealth.  It’s a perfect time to review your savings habits, make changes, and set goals to create greater peace of mind and improve your long-term financial stability.

Consider these facts: Only 50% of Americans say they have a savings plan with goals; and surveys show that money is the top source of psychological stress for adults. Money issues not only create stress, they strain relationships, lead to conflict, and are a leading cause of divorce. However, this doesn’t have to be the case if you create a realistic budget and a financial plan–and stick to them.

Many people don’t know where to start. My advice is to begin with goals in mind. America Saves suggests:

  • Saving for emergencies
  • Paying off debt – especially high interest rate debt
  • Opening a retirement account and regularly contributing to it
  • Saving for big purchases such as a car, house or your children’s education

Fortunately, there are several federal programs that help military families save for the future.  By taking advantage of technology, you can boost your savings habits:

However, it’s one thing to create a budget and plan, and quite another to follow through on your best intentions.  Begin to cut spending in areas that drain savings opportunities:

  • Keep a daily record of all expenses. Then, analyze where you spent money needlessly, such as that latte on the way to work or eating out daily for lunch.
  • Pay off high-cost debt immediately. Loans and credit cards with high interest rates, for example, can eat up savings fast.
  • Stick to a budget for special occasions such as birthdays, vacation trips and holidays. Going into debt for these events is not worth it.
  • Change shopping habits to reduce impulsive purchases that may set you back on budget goals.

Yet, oftentimes it’s difficult to squeeze more money out of your paycheck for monthly needs– let alone set aside money for bigger goals.  A good strategy is to start small and look for simple ways to trim spending.  Just changing your mindset can make a big difference:
Save loose change – .50 cents a day adds up to $180 per year
Bring your lunch to work more often – save approximately $5 per day that can be transferred to savings
Eat out two fewer times a month – save $30 per month or $360 per year
Pay off credit card bills completely each month and on time to avoid spiraling interest and late fees – $25 per month or $300 per year

These tips are just the beginning. If you want more resources and ideas, go to www.militarysaves.org and begin your journey to financial security.

Military Saves Week Guest Article for MilitaryShoppers.com

by Don Giles

President, Armed Forces Bank

Service Members: Filing Their Taxes

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January is here, which means the holidays are over and you should be thinking about taxes. Whether you plan to do your taxes yourself or take them in for an accountant to handle, you need to think about getting ready to do them.

5 Things Military Service Members Need to Know About Filing Their Federal and State Taxes

Taxpayers have until Monday, April 18, 2016, to file their 2015 tax returns.

Here is a list of 5 things that military families need to know about filing federal and state income taxes. Make sure to go over these and apply them to your situation.

Free Tax Assistance On Post Most military installations will offer free tax filing assistance through the on-post tax center. This can be very helpful because you can make an appointment to get your taxes done and have someone with experience do them for you for free. A lot of military members take advantage of this service. Check and see what is available at your duty station. You probably do have to make an appointment ahead of time.

Free Tax Online Programs If you want to do your taxes online using a tax program you should learn about the free options for service members.

H&R Block at Home, TaxAct, TaxSlayer and TurboTax offer free tax preparation software for your federal taxes.

Keep in mind that in most cases you will have to pay for the state part of your return. That will depend on which state you are filing with and you should figure out what the fees will be for your particular state. Some states do not have an income tax and others do not tax members of the military.

Tax-Exempt Income When you are serving in the military, not all of your income is taxable. You do not have to pay taxes on combat pay. This is important to remember, especially if you were deployed for the whole calendar year.

BAH, BAS, uniform allowances, moving and travel pay and educational payments are also not taxable. This means that the amount that you make that you have to pay taxes on is a lot lower than what you brought in. Luckily, any tax program you use is going to know how to get you the best refund when you are dealing with combat pay and other extra military expenses that are not taxable.

One thing to remember is that in order to qualify for the EITC (Earned Income Tax Credit) you have to have a minimum of a certain amount of taxable income.

Military Deductions There are a few tax deductions that service members need to know about. You can deduct some of your uniform expenses, some of the job and travel expenses you may have had when getting out of the military as well as travel of more than 100 miles if you are a part of the Reserves.

Extension of Time to File Taxes If you have served in a combat zone or outside of the United States, then you should be able to extend the time you need to complete your taxes to October 15. This can come in handy for a lot of people serving and makes their lives a little easier.

And finally, new to 2016, active duty, Guard, Reserve and retirees will need their proof of health care coverage (IRS Form 1095) when filing their federal tax returns for 2015 as part of the federal Affordable Care Act. The Defense Finance and Accounting Service will be providing this information to members of the military. This form will also be available online through your myPay account. Look for it in the taxes section.

As a member of the military, you don’t want to miss out on these tax breaks and benefits that you are entitled to. They can help you keep more money at tax time and they are the reason a lot of military families receive a tax return each year.

Find a place to get your taxes done that you can feel comfortable with and be aware of what you can do to make filing taxes a little easier on yourself.

What questions do you have about filing taxes?

4 Totally Free Financial Resources You Should Use in the New Year

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January is the month of possibility. It’s a time of new beginnings. It’s when we shrug off our mistakes from the past year and embrace a renewed hope for the next 12 months.

For many military couples, January is a good time to examine your financial well-being. Are you living paycheck to paycheck? Are you ready to take tackle that student loan debt? Are you able to start investing in your retirement?

I know I should be excited about the possibilities of the new year, but instead I’m avoiding my mailbox. I really don’t want to open my credit card statement. I thought I planned and followed my budget for holiday spending, but after we drove 2 days to my in-laws’ house and stayed in a hotel and I shopped with my sister-in-law and went to the movies with my sister and bought Christmas decorations on clearance…the list goes on and on about why I really don’t want to face this massive credit card bill.

Every January I find myself in this same situation. I overspend in December and vow to not repeat my mistakes in January. January is the month when I take a hard look at our budget with my husband and vow that this year is the year we will spend less, save more and put more money away for retirement.

Are you feeling the same way? Do you want to make 2016 the year that you get your finances squared away? Are you unsure about what steps to take to save more money and reduce your debt?

There are a lot of free financial resources available to military families. Here’s a list of 4 financial resources that you and your service member should check out in 2016.

Here’s a list of 4 free financial resources that you and your spouse should check out in 2016.

There are plenty of free resources available either on-base or online to give you the tools you need for financial success in the new year.

1. Military Relief Organizations

If you don’t know about the military relief organizations, you need to. These organizations (Army Emergency Relief, Navy-Marine Corps Relief Society and Air Force Aid Society) are private, nonprofit organizations that help service members and their families with certain emergency financial needs. But you don’t need to wait until you’re in financial trouble to make an appointment with a volunteer at a military relief organization.

Be proactive and make an appointment to review your budget with a trained counselor today. Also, if you are expecting a baby in 2016, sign up for their Budget for Baby workshop. You won’t regret it.

2. On-Base Financial Readiness Programs

Service members and their spouses should never pay for a financial class. Nearly every month, military installations offer free financial education classes through Army Community Services, Fleet and Family Support; Airmen and Family Readiness Centers; and Marine Corps Community Services, depending on your branch.

These classes teach service members how to “save and invest their money, how to establish savings goals, debt elimination strategies and saving for emergencies.” When we were stationed on Okinawa, the Marine Corps Community Services offered a homebuyer’s workshop. This workshop explained VA loans, how much money to save for a down payment and how to calculate how much house your family can afford.

These classes are also available for individual counseling sessions.

3. Military Saves Campaign

The Military Saves campaign is a component of the nonprofit America Saves and a partner in the Department of Defense’s Financial Readiness Campaign. Besides its annual savings campaign in February, Military Saves “seeks to motivate, support and encourage military families to save money, reduce debt and build wealth,” according to its website. The Military Saves website has information about credit reports, how to make financial goals and saver stories to inspire you to spend less and save more money.

4. FINRA Investor Education Foundation’s Military Financial Readiness Program

Started in 2006, this program, in collaboration with the U.S. Department of Defense Financial Readiness Campaign, aims to help “military families manage their money with confidence.” Visit SaveandInvest.org/military for calculators and worksheets, along with educational videos and quizzes to test your financial knowledge.

No matter what your financial goals are for 2016, remember that service members and their spouses shouldn’t pay for financial classes. There are plenty of free resources available either on-base or online to give you the tools you need for financial success in the new year.

What are your financial goals for 2016? How do you plan to reach these financial goals?

What Veterans Need to Know About Predatory Debt Collection

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It’s not a secret that military families tend to be mobile. We move more often than the general population (I cringe every time I’m asked to list my mailing addresses from the past 10 years). We may buy a car in Georgia, a house in Virginia and work in California.

This mobile lifestyle combined with a steady paycheck is why military service members, their spouses and veterans are frequent targets of predatory debt collection.

What Veterans Need to Know About Predatory Debt Collection

Service members need to know that predatory debt collection is against the law.

When I use the term, predatory debt collection, I’m not talking about legitimate student loans that you refuse to pay each month. When I use the term, predatory debt collection, I am referring to cases where the service member already paid the loan or never took a loan out in the first place.

For example, let’s say the service member went to a payday loan or payday advance for a short-term unsecured loan. This soldier, Marine or sailor needed fast cash and they needed it that day. So they decided to use this service. Then, according to the loan’s agreement, they repaid the loan and its interest.

Then 6 months later, this service member gets a phone call in the middle of the night saying he still owes money on the loan. The bill collector doesn’t provide any information about the source of the debt, how old it was and whether it was paid or not. By this time, the service member may be stationed in a different state or serving on a deployment. In that case, the spouse is contacted and left wondering “do we owe money on that loan?” The debt collector threats to contact the service member’s commanding officer. The debt collector mentions that the unpaid debt will result in the loss of a security clearance. This scenario is the type of situation discussed during Senate hearings on predatory debt collection.

This is abusive, aggressive or predatory debt collection. And predatory debt collection is against the law.

The Fair Debt Collection Practices Act (FDCPA) “prohibits debt collectors from using abusive, unfair, or deceptive practices.” Under the FDCPA, a “debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them,” according to the National Association of Consumer Advocates.  The FDCPA applies to personal and household debt. This means it applies to your mortgage, your car loan and your credit card.

Senators have discussed cases of predatory debt collection that include lenders sending illegal foreclosure notices, overcharges on their mortgages and notices that credit cards weren’t properly canceled. Congress is working to strengthen the laws regarding abusive debt collection, but until then service members, veterans and their families need to be aware of the Fair Debt Collection Practices Act.

Here are 3 things you need to know about predatory debt collection.

Don’t Talk. Ask for a Written Notice. A debt collector must send a written “validation notice” telling you how much money you owe within 5 days after first contacting you. In this written notice, you will find the name of the creditor and how to dispute the debt if you don’t think you owe the money.

Don’t Ignore It. Dispute It. These phone calls and notices can be annoying and inconvenient. If you know that you don’t owe any money to this debt collector, don’t ignore it. Send the debt collector a letter stating that you don’t owe this money and request that they stop contacting you. You must send this letter within 30 days after receiving the validation notice mentioned above. Keep a copy of your letter.

Don’t Be Afraid to Report Abuses. If you believe that a debt collector is targeting you and your spouse, report the problem to your state Attorney General’s office and the Federal Trade Commission. Be prepared to give them a copy of your dispute letter and documentation about any phone calls.

Unfortunately service members often are pressured with predatory debt collection. But knowing the law and your rights can prevent you from becoming a victim of predatory debt collection. Take time to study the law so you aren’t caught off-guard when predatory debt collectors call you.

Want more information about predatory debt collection, visit the Federal Trade Commission’s website.