Making the most out of your money with financial planning

  • Published
  • By Staff Sgt. Stefan Alvarez
  • 325th Fighter Wing Public Affairs

With military pay raises and a tax deferral affecting service members, becoming financially sound and independent is something to strive for.

Studies from various financial institutions have found that nearly 4-in-10 Americans live paycheck to paycheck. The key to mitigating financial issues is saving as much as possible, whenever possible.

“Saving money represents financial freedom,” said Keana Hughes, 325th Force Support Squadron personal financial readiness program manager. “When an emergency situation comes up or when making large purchases, it feels good to know that the funds are there.”

The tax deferral will make it will appear that members will be making more money although it will have to be paid pack at a later date.

“For most people it means a temporary tax relief for the holidays,” Hughes said. “The caveat is that it creates a debt that will have to be paid back during the specified time frame, which is Jan. 1, 2021 through April 30, 2021.”

In light of not being able to opt out of the tax deferral, the solution to avoid facing debt next year is simple.

“Pretend you don’t have that extra money and put it away,” Hughes said. “The amount that you would normally be taxed should be transferred to an interest bearing account and be sure that you will have access to it when the time comes to avoid any financial hardships.”

Saving money may prove difficult to some, but by using resources such as the Airman and Family Readiness Center, the first steps towards financial independence can be taken.

“Be transparent on how you handle your finances,” said Hughes. “Setting realistic goals, creating budgets, making changes to your spending habits and setting up auto-pay for your savings account are all great places to start. The best investment you can make is in yourself and it is worth it.”

For financial advice or more information on the tax deferral visit or contact the 325th Force Support Squadron’s Airman and Family Readiness Center at (850) 283-2400