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Volume 36, March 2015

The Emergency

Fund Issue

Time to get tough financially

SOLDIER & FAMILY TOOLKIT 1/34 ARMORED BRIGADE COMBAT TEAM

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IN THIS ISSUE

This is our second annual Emergency Fund Issue. According to FINRA’s 2012 Mili-

tary Financial Capability Study, only 54% of military members have rainy day funds.

This is a pretty sad number. Even worse, according to CNN Money, 76% of Ameri-

cans live paycheck to paycheck. People surveyed said they simply didn’t have

enough money to set aside for savings. That is quite ironic, because according to

USA Money, the average American throws out $529 in wasted food, loses $400 in

gambling, spends 1% of there income on alcohol, $1,092 on coffee, and spends

$1,200 per year on fast food (Daily Mail). For a Family of 4 on a $50k income, that

equates to $8,000. Their article also gives figures for wasted energy, speeding tick-

ets, tobacco products, unused gift cards, unused gym memberships, and premium

cable. Thanks for reading..

3 BEYOND THE YELLOW RIBBON EVENTS & DEALS

4 TAX PREP FLYER

5 TAX REFUND PLANS

6 EMERGENCY FUND 101

7 45 WAYS TO BUILD YOUR EMERGENCY FUND

9 HEALTHY MONEY HABITS

11 RESOURCE LINKS

12 FAMILY ASSISTANCE CENTERS

Thanks for reading our Soldier Family Toolkit. The intent of this toolkit is to provide you with available events,

deals, resources, and important information.

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Check out the Beyond the

Yellow Ribbon website and

sign up for exclusive email

updates on monthly local

Beyond the Yellow Ribbon

events and deals.

HOME FRONT EVENTS & DEALS

www.BeyondTheYellowRibbon.org

Complimentary Business Coaching for Veteran Businesses When: Any convenient Date/Time

Where: Your Business

About: AdviCoach has a passion and commitment to helping

military and veteran business owners achieve success and meet

their business and personal goals. They offer a complimentary

90 minute coaching session, to learn about you and your busi-

ness, to determine how they can help your business survive and

thrive. More Info: Flyer

Minnesota Military Radio Hour When: Radio show airs on over 21 stations throughout the state

at various times on Saturdays and Sundays

About: With a team of producers from the MN National Guard,

Department of Veterans Affairs, and Minneapolis V.A., volun-

teer host and Vietnam veteran Tom Lyons strives to inform and

entertain listeners in this weekly syndicated radio and podcast.

More Info: Times and Dates of the Broadcast

Hotel Discounts for Military and Public Service Workers When: Now through Dec. 30, 2015

Where: Participating hotels in Duluth

About: To honor those who serve, several hotels in Duluth are

offering a special discount to Servicemembers and public ser-

vice workers. All hotels offer a complimentary breakfast, high-

speed Wi-Fi, a fitness center and extended stay rates for 7 days

or more. *Excluding the Edgewater which has a hot breakfast

buffet for a minimal charge.

More Info: Flyer

Spirit Mountain Season Passes Enjoy a season of skiing and snowboarding! Spirit Mountain in

Duluth is offering discounts on season passes to Servicemem-

bers and veterans and has recently announced it will now offer

lift ticket discounts to all active Servicemembers. There are

also other season pass options for families and college students.

More Info: Website

Operation Freedom on Ice When: Register now! Event will take place on March 7, 2015

Registration: Call Tim 651-395-9424 or email opfreedo-

monice@gmail.com

Where: Cross Lake, Pine City

About: To thank members, past and present, for their service and

for protecting the Nation's freedom. All proceeds go to BTYR to

support our military and their families before, during and after de-

ployment.

More Info: Flyer

MN Timberwolves Recognizes Military Youth - Registration When: Register now! April 1, 2015 and April 15, 2015

Where: Target Center, Minneapolis

Who: Military connected youth, ages 6-15 years old

About: Come out and celebrate our Military Children and Youth

and enjoy the Timberwolves game. The Minnesota Timberwolves

recognize the contributions and sacrifices made by military kids

and have invited them to be a part of their pre-game activities.

More Info: Register Online Event Details

Free Tax Preparation for Military Families When: Now through April 15

Where: By phone, email or at a local CPA's office

Who: SMs that are currently deployed or were deployed during

2014

About: Certified public accountants (CPAs) have volunteered to

prepare tax returns free of charge for qualified military personnel.

Contact the MN NG Family Programs office at 651-268-8204 to

receive a referral.

More Info: Website

Congressional Art Competition When: Enter today through April 24, 2015

Where: Check out their website for specific guidance.

About: Each spring, the Congressional Institute sponsors a nation-

wide high school visual art competition to recognize and encour-

age artistic talent in the nation and in each congressional district.

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Think of a Tax Refund as an interest free loan that a person is giving the IRS or think of it as a savings account with a negative rate of return. An easy way to get a monthly raise is to divide your refund by 12 and reduce your withholding accordingly. Always check with your tax professional before making finan-cial decisions. What do you do if you have an unplanned tax bill this year instead of a refund? 1. Get a second opinion. Make sure that you are using a qualified tax professional that is familiar with

the nuances of military service and taxes. 2. Now may be the time to put off some big purchases or perhaps dip into your emergency fund. If you

don’t have an emergency fund or want to increase it , see page 7 for strategies to build your emer-gency fund.

3. Talk with your tax professional about adjusting your withholding going forward so that you won’t have a tax bill next year.

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What is an Emergency Fund? Just like disability insurance, there are two kinds of Emergency Funds, short term and long term. Rainy days happen, so it is important to be prepared. If you don’t have any savings, perhaps your first goal is to set aside $500 or $1,000. This is the money that will keep your electricity from being turned off. If you aren’t behind on your bills or deeply in debt , most experts recommend having an emergency fund of 3-6 months in place in order to protect against things like a medical event or job loss. Emergency Fund Considerations If one or more of the income earners in your home lost their jobs or were injured or unable to work, how much money would it take to meet the bare minimum expenses for the household? That number is the minimum Emergency Fund a family should have in place. How much would it take to maintain your current lifestyle? That would be the high end of what an Emergency Fund should be. Examples Two examples of situations where emergency funds are very helpful are car accidents and childhood illnesses. In the case of a car accident, insurance doesn’t necessarily cover immediate expenses re-lated to missed work, medical appointments, and car replacement. While many adults have disability insurance to buffer the financial effects of an illness, most people don’t have the same coverage for their children. When a child is sick, parents may need to take unpaid leave from work and medical and related expenses can add up.

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1. Temporarily skip Christmas/

Vacation/… Look at some of the more expensive events during the year and consider skipping or scaling back on them for a year.

2. Trade with others. I needed lots of D Batteries (baby swing, flashlights), my friend had lots of Ds, but needed AAs & AAAs (remotes). I had lots of those, so we swapped. We both felt like we were getting a fantastic deal.

3. Review and adjust your insurances. This may or may not help, but is a good habit anyways.

4. Trade services. This comes in very handy with childcare, but can be used for plumbing, electrical, auto work, lawn care,… Let’s say you have a friend that is a plumber with small children. You could ask him to stop by to fix something and bring the kids with while you watch them. In return, you of-fer a restaurant gift card (you got for Christmas) and you’ll watch the kids during their date night. I heard of a gal that brought dinner to her pediatrician’s house once a week in exchange for their kids’ medical care.

5. Shop with grocery list, or try last month’s grocery challenge.

6. Get a better paying job, either in different employ-ment or through a promotion. (EPS packets any-one?)

7. Sell a car. WHAT??? Yep. I have done this more than once. We have sold the “extra” car more than once. We also sold the vehicle with a payment to free up monthly cash. We sold our paid for gas guzzling truck to build up savings too. We are a one vehicle family. It is a pain, but one month, our gas & full coverage insurance on our 05 Matrix was under $200 and we drive 30 miles to work round trip.

8. Pay off debt, this will free up your cash flow for saving.

9. Use your gift cards. A lot of gift cards go unused. Dig through drawers, find them, and use them up to meet your needs for the month instead of cash and put the difference towards your E fund.

10. Reduce interest rates. Try to transfer balances on a credit card or refinance a car loan (better yet, sell the car). Look into refinancing your mortgage as well.

11. Get student loans on hardship deferral. This is not a long term plan, but if you can’t pay your bills, it can help free up some cash for the short term.

12. Consider moving. WHAT??? Yep. I am doing this as well. Sometimes, a house or rental situation just isn’t affordable. And if you look hard enough, you may find something that is better and cheaper and may free up some equity during the sale to better fund your savings.

13. Get a part time job. Walk your neighbor’s dog, babysit, deliver pizza, whatever it takes.

14. Go back to school. If this is part of your plan anyway and the military provides compensation above tuition, this could be a strategy.

HEALTHY MONEY HABITS

45 WAYS TO BUILD

YOUR EMERGENCY FUND

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15. Shop clearance racks, especially on big

purchases (better yet, avoid big pur-chases!).

16. Return some gifts. Sometimes we receive gifts that we really don’t need (sweaters, socks, …).

17. Have cereal for dinner one night a week (assuming you are getting good deals on cereal).

18. Stay-at- home parents can make $200 a week or more watching an additional child.

19. Clean out your kitchen cupboards and sell what you don’t need (Quesadilla maker,...)

20. Sell books on your bookshelf. This can be especially lucrative in college.

21. Sell a piece of furniture. Maybe your sectional couch is too big.

22. Analyze your pet expenses and figure out ways to cut back.

23. Shop at thrift stores and garage sales.

24. Get rid of your gym member-ship.

25. Don’t buy bottled water.

26. Quit drinking soda.

27. Quit drinking alcohol.

28. Consider a less expensive hair care routine.

29. Consider selling a collection (coins, stamps, baseball cards).

39. Sell plants. If you have too many perennials in your garden, thin them out and sell/trade them.

40. Rent a room or your house on airbnb.com. I am hoping to do this during a festival weekend.

41. Sell firewood. If you have an extra tree(s) that you don’t want, have someone pay you for them.

42. Sell unused jewelry (at a jewelry store, not a gold buying place). If you don’t have any, consider asking a relative if you can help them clean out their jewelry drawer and offer to bring the broken/used jewelry to the store and split the proceeds.

43. Sell extra tools in the garage. How many drills does a person really need?

44. Get a roommate. This could cut down your housing expenses dramatically.

45. Sell unused sporting equipment (treadmill, old figure skates)

30. Get a programmable thermostat.

31. Sell scrap metal, alumi-num cans, …

32. Close an old bank ac-count.

33. Cash in a change jar or start one.

34. Host a freezer meal ex-change.

35. Become a do-it-yourselfer.

36. Deliver flowers on

Valentine’s or Mother’s Day.

37. Join a grocery sharing program or start dish one.

38. Start a part-time kids’ clothes flipping busi-ness, picking them up from garage sales and selling them online.

Good Housekeeping

HEALTHY MONEY HABITS

45 WAYS TO BUILD

YOUR EMERGENCY FUND

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March brings the first quarter of the year to a close. Most people make goals in January about weight loss and fi-

nances. How are they going? I am not a big fan of weight loss goals, but love financial ones. It is way too cold in

Minnesota in January & February to go to the store or the gym. It is, however, a great time to do tax paperwork

and take a look at your finances over the last few years and think about where you want to be in the next few

years. Most people get frazzled doing this because they try to do the numbers and the goals at the same time.

Those are activities that use different sides of your brain, which basically causes it to melt down. This combined

with normal frustrations couples face can lead to big arguments. One solution is to focus on the goals themselves

first and then put the numbers to the goals at a separate meeting.

We hit several road blocks goal setting and dreaming, so to get through the conversation, we broke it down into

smaller bites over several days. The first conversation was about our lives just before and after death. Morbid, I

know, but we have had several of our grandparents pass away and/or need long-term care. We didn’t like how the

situations were handled and both agreed that we didn’t want to be a burden for our children and grandchildren and

we also agreed that we wanted lots of them (hence why we are expecting baby #3). Not being a burden, we

agreed, meant having the financial assets to pay for all of our end-of-life care and leave an inheritance that others

could use to make the world a better place.

The next conversation we had was about retirement (age 70). What did we want that to look like? Where did we

want to live? What do we think our streams of income are going to be? We were certain on some things like be-

ing able to watch the grandkids play hockey and less certain on other things like MN winters.

The next few conversations, life at age 60 & 50, were a bit harder to figure out. We just knew that we didn’t like

where our parents were at and we wanted to be on a different track. The age 40 conversation was easy for us be-

cause we knew the kids would be in high school/jr. high and we could visualize it.

Then, we started to nail down a rough picture of what the next ten years would like. I, being the nerd, made a

spreadsheet that showed everyone’s grade in school and other fixed milestones. It was pretty strange to see the

next twenty years on a single piece of paper. That helped us figure out our goals for the next year, like refinanc-

ing and having another baby. The big goals have helped us breakdown smaller monthly goals like save for a big-

ger car and replace windows.

Once we knew our goals, we could put numbers to them, like put $200 into savings for the new car this week, or

start saving for new windows. Having goals helps us cut back on expenses and motivates us to make better

choices, like not eating at McDonald’s (as much). One of our newest strategies has been to put money in savings

first and then figure out the other things next. It helps us decide what is really important and what can wait. By

taking a “not right now,” instead of a “not at all” approach, we have been able to wait and see if we really want it

and save up for it.

Now that the year is almost a quarter done, it is time to really get serious about financial goals and make some pro-

gress. If you have further questions, don’t hesitate to reach out to one of our Personal Financial Counselors in the

State.

HEALTHY MONEY HABITS

FINANCIAL

GOALS FOR 2015

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When I started this column, I wanted to practice what I preached.

Too often, I have read financial columns by people that were obvi-

ously not doing what they were writing about. Personal finance is

very personal. It takes self-discipline, something most Americans

like myself are sorely lacking. One of the best things my husband

and I ever did with our finances is to start an emergency fund. Before

we had one, we lived from one financial crisis to the next, now those

things are merely annoyances, and sometimes pretty funny.

While we have an emergency fund in place, we have found ourselves

in need of additional money outside of our normal budget to cover

some large upcoming expenses. Our goal for February is $2,000.

We set aside a certain percentage of our income each month towards

savings. This month, that will be $700, leaving $1,300. Here is our

path to get there.

First $400

1. Emptied a Change Jar $20

2. Sold savings bonds $330

3. Closed an old checking account $50

Second $400

1. Sold our unneeded baby gate $30

2. Sold some gift cards to a family member $60

3. Got some Menard’s rebates in the mail $110

4. Returned some things at Menards $40

5. Sold unused cloth diapers $160

(I thought using them would save money)

Remaining $500

1. Sold a train set ($20), floor mat ($10), and toy cars ($10) on

Craigslist $40

2. I redeemed my Huggies rewards points for a gift card that I will

sell $15

3. I am going to redeem some of my frequent points for a Target

gift card $25

4. Current Craigslist postings $490, more to be posted this weekend.

As of the date this goes to print, we are still short of the goal, but we

hope to meet the goal by the end of the weekend.

Our First Emergency Fund

The week our first child was due, was the

first time we really had to use our emer-

gency fund. We were patching the ceiling

of our kitchen and learned the hard way

that glass top stoves aren’t for standing

on. The oven had already been on its last

legs and we had to prop the door shut and

it only opened halfway. Our refrigerator

decided it was a freezer that week and was

having issues as well. I was very excited

when I heard the shattering sound, be-

cause we could finally get new appliances.

The problem was that it was noon on a

Saturday and the appliance store closed at

two. Another issue was that our debit card

had a $600 limit, so we also had to use

cash on hand. The cashier had a story to

tell that night. In walks a 40 week preg-

nant woman, covered in drywall dust and

paint, crying (tears of joy), and paying for

a fridge and stove with one dollar bills.

The baby arrived before the fridge and

was a nice welcome home gift.

HEALTHY MONEY HABITS

GENERATING

CASH QUICKLY

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RESOURCE LINKS ARMY / NATIONAL GUARD minnesotanationalguard.com armyonesource.com militaryonesource.mil CHILDREN ADAPT: cehd.umn.edu/fsos/adapt operationwearehere.com mnchildcare.org ausa.org/family mdva.state.mn.us/child guardfamilyyouth.org militarykids.org DISCOUNTS beyondtheyellowribbon.org military.com/discounts/category EDUCATION education4military.com gibill.va.gov militaryonesource.mil militarychild.org EMPLOYMENT esgr.org mn.gov/deed FMLA: dol.gov/whd/fmla HEALTH / MENTAL HEALTH tricare.mil militarymentalhealth.org Counseling 24/7: militaryonesource.mil MARRIAGE AND RELATIONSHIPS Marriage Retreats: strongbonds.org militaryonesource.mil PARENTS OF SOLDIERS bluestarmoms.org operationwearehere.com/Parents.html PET CARE dogsondeployment.org netpets.org guardianangelsforsoldierspet.org SPOUSES & SIGNIFICANT OTHERS militarysos.com spousebuzz.com milspouse.com msccn.org nationalmilitaryspousenetwork.org STRESS MANAGEMENT militaryonesource.mil defense.gov/specials/stressawareness

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