21/10/2020

Managing Money When Leaving the Armed Forces

Understanding your budget is important if you want to manage your finances once you've left the Armed forces. Our article explains how to stay in complete control of your money!

How to Manage Your Money After Leaving the Armed Forces

Understanding budgeting is important if you want to successfully manage your finances once you've left the Armed forces. It's the only way to gain - and stay - in control of your money. It means you can achieve all of your money goals, from something as simple as having money left at the end of the month to the more ambitious plan of owning a second home abroad.
Having complete control of your budget will allow you to see how much money you have coming in and how much is going out.

Short Term Savings

This can mean putting money aside for a short term goal such as a holiday, small home improvements or even to buy a new car. You will want to ensure that you get your money back in full when you need it, and one of the ways you can do this is to use a savings account with a Bank, Building Society, National Savings and Investments (NS&I) or a credit union.

There are also different types of account:

Longer Term Investing

When you hear the term 'investment' it's common to think of longer term commitments that will run for a few years. Examples include investing money to provide you with an extra income throughout retirement or setting aside a lump sum to be used in the future.

Savings accounts are a relatively safe place for your money, because you get the same amount that originally invested plus any interest gained. However the return on savings accounts tends to be low which means that your savings may not earn enough to offset the effect of inflation.

Any returns gained from investments are usually subject to taxation; however some ways of saving and investing have tax advantages which may improve the amount that you get in return. A Pension scheme, for example, works in this manner as does Individual Savings Accounts (ISA).

Golden Rules of Budgeting

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