Top 7 money tips for military recruits
Here’s how new recruits can make every dollar go further.
Congratulations! You made it through basic training. You have a regular paycheque. Money is flowing into your account regularly. There are lots of financial advantages to being in the Canadian Armed Forces (CAF). Here’s how new recruits can make every dollar go further.
1. Get used to asking for military discounts
Have your military ID ready! Many online retailers, stores and services offer discounts to members of the CAF. It’s always worth asking at the checkout. Plus, register online now for your CFOne card to see all the places you automatically save on clothing, athletic gear, travel and more!
2. Reduce your bank fees and get special lending rates
Canadian banks tend to charge higher monthly fees than those in other countries and it can add up to hundreds of dollars per year. As a CAF member, you’re eligible for no-fee banking! Register for the BMO Performance Plan chequing account to pay zero banking fees on daily transactions, and get built-in theft protection. Plus, get employee rates on mortgages and access BMO’s Support Our Troops no-fee credit card, tailored to CAF members.
3. Create a budget that matches your military lifestyle
Start by looking at your paycheque to understand your after-tax monthly income. Then track your current spending. Save receipts or input your purchase amounts into an app or spreadsheet so you can see where your money is going each month. Create a simple table to outline your fixed monthly expenses, like transit, rent and utilities. List variable expenses, which could include annual membership fees or gas for your car. Next add in discretionary spending, like eating out, travel and clothing. Make some decisions about where you could cut back or where you’d like to spend more money in future.
4. Consider big purchases
It’s easy to get excited and start buying big ticket items once you have a regular paycheque. But take your time to weigh costs, compare prices and determine how it fits with your overall budget now and in the future. Sometimes, it’s worth waiting to save a bit or get a better deal. Plus, you don’t want to get rack up credit card debt, which is the most expensive way to borrow money.
5. Save money for stuff you want
You may have heard the adage, “pay yourself first”. Did you know you can automate your savings by having money deposited directly into a savings account every time you get paid? Saving money guarantees you’ll always have funds when you need them. Imagine a great deal on a vacation or a car comes up and you’ve got money tucked away to take advantage of it. A good initial goal is to save three months’ salary in a rainy-day fund. Take advantage of a tax-free savings account (TFSA), which allows you to earn tax-sheltered interest.
6. Protect your stuff -- at a discount!
Now that you have a regular paycheque, you may have purchased some of the things you’ve always wanted – a bike, a new computer, maybe even a car. If you’re renting, you want to have enough insurance on the contents of your place to cover replacement costs for your gear in an emergency. Did you know CAF members are eligible for discounted group insurance rates on home, auto and property insurance?
7. Make the most of deployment
When you deploy, you could be gone for months. Check out SISIP’s financial deployment checklist to see where you can cut back and how to save any additional money when you’re deployed.
Contact your SISIP advisor today to review your financial plan and set you on the path to financial health
