Play your cards right: Base experts offer tips for building financial fitness
RAF MILDENHALL, England --
Personal financial fitness helps to build a strong force. But, problems paying bills can weigh the whole unit down. Free tools and services on base can empower Airmen, not only to avoid money problems, but to become millionaires.
Unforeseen Hassle
At worst, poor financial management can end in loss of a security clearance, said Mr. Michael Krogh, base chief of personnel security. Airmen's financial histories are surfacing more rapidly now as better processes free backlog on security clearance applications.
Tech. Sgt. Nate Worland, 727th Air Mobility Squadron, didn't think anything was wrong with his credit. Then he applied for his 10-year security-clearance review. In June, his line badge, e-mail and other basic privileges were pulled.
"I told them, 'I don't see what the problem is. I'm trying hard to pay off my bills," Sergeant Worland said.
Years earlier, as a new Airman, credit-card companies had wooed him.
"We bought a house at 21," he said. "After that, companies were willing to give credit cards with ungodly limits."
Plane tickets home, electronic equipment, dining out and hundreds of charges later, Sergeant Worland found himself in the middle of about $30,000 of debt.
He grew overwhelmed. He found a debt consolidation company and checked it through the Better Business Bureau. Then he started paying them $455 a month to settle his debts.
"It probably was written in fine print somewhere," Sergeant Worland said. "They take over your accounts and wait to save enough money to bargain with. The whole while, you accumulate late fees, and it looks like you're just not paying credit cards."
Two years later, the Air Force Central Adjudication Facility flagged his credit, issued a suitability determination and suspended his clearance application.
After realizing what happened, Sergeant Worland made some phone calls. Now his debt is paid. But he's still proving to the Air Force that he can manage his money - a process which can take six to eight months, Mr. Krogh said. In addition to losing his badge and e-mail access, shift schedules need to be rearranged for him. He works in the 727th Air
Mobility Squadron air terminal operations center but can't be told when planes are coming or going.
"It's kind of crazy; you never know what you appreciate 'til it's gone," Sergeant Worland said. Although his coworkers have been supportive, Sergeant Worland said he hopes that other Airmen don't have to learn the hard way.
"Where financial matters are concerned," Mr. Krogh said, "the bottom line to protecting your clearance is to be aware of your credit rating, make payments on time, and seek financial assistance with problems before they get out of hand."
Free Money Tips
Many think that if they ignore their debt, it will go away, said Lona Berndt, base community readiness consultant at the Airman and Family Readiness Center.
"Personal ownership is big," Ms. Berndt said. "You can't change what you don't acknowledge."
If you're hiding purchases from your spouse, only able to make minimum payments on credit cards, have credit cards that are all "maxed" out, or juggle which bills to pay each month, then these are signs that you probably need help, she said.
Help is free.
"I try to say to people, 'You're very fortunate to work in an organization like the Air Force where people care about your success," Ms. Berndt said.
The AFRC trains all first-term Airmen on managing personal finances. It also offers individual counseling and training by appointment.
"Oftentimes, when people come in for individual appointments, you can see it in their body language; they're looking down at the ground, embarrassed, ashamed, upset," Ms. Berndt said. "But they perk up when I tell them, 'You can change'; the thing people need to learn is that doesn't have to be their destiny. You can change that."
Sergeant Worland agreed that the wisdom provided by those like Ms. Berndt changes lives.
"Everybody hears it," he said. "They've got the right tools here. Basically, it just comes down to self control and discipline - saying, 'Naw, I don't need that.'"
Fit to Get Rich
The road to riches starts with personal accountability and is paved with knowledge.
"A lot of times, people just don't have the skills," Ms. Berndt said. "We can learn accounting in high school, but there's nothing to teach us about personal finances. No one was there to tell me, 'Hey, you can be a millionaire at age 60.'"
Airmen can start by tracking spending habits in a small notepad for a month (spending trackers are free at the AFRC, along with investment calculators, personal spending plan guides and other resources).
Tracking spending habits causes people to think, especially before using a credit card to pay for routine purchases, Ms. Berndt said.
Next, outline a realistic spending plan.
"Sometimes people hear the word 'budget,' or 'spending plan' and think, 'my life is not going to be fun,'" she said. "But if you establish a good spending plan, it takes into account those life expenses, but does it in a way you can afford."
Once the spending plan is established, the next step is to create an emergency fund. Ideally, it should at least be three to six months worth of pay; but just $1,000 can avert a crisis, Ms. Berndt said.
"Unfortunately things will come up, whether it's car repairs, problems with utilities, or something happens with your kids. Save up so don't have that deck of cards crash."
Lastly, write down specific goals.
Long-term goal setting can make a young Airman rich. Ms. Berndt can provide investment guidance that, with proper planning and a clear understanding of their options, could steer an Airman toward millions by retirement.
"We don't tell people where they should put their money, we provide a better understanding of basic investment vehicles," she said.
She also helps people understand that they are the owners of their own business, and they manage that business by staying on top of their Leave and Earnings Statement.
But, the skills unravel without personal accountability. Although Sgt. Worland pays cash now for everything, he still gets tempted to charge.
"You look at something and think, 'I could just have that right now.' But if I need anything, I'll save," he said. "Just wait and be patient. You'll eventually get what you want."
Unforeseen Hassle
At worst, poor financial management can end in loss of a security clearance, said Mr. Michael Krogh, base chief of personnel security. Airmen's financial histories are surfacing more rapidly now as better processes free backlog on security clearance applications.
Tech. Sgt. Nate Worland, 727th Air Mobility Squadron, didn't think anything was wrong with his credit. Then he applied for his 10-year security-clearance review. In June, his line badge, e-mail and other basic privileges were pulled.
"I told them, 'I don't see what the problem is. I'm trying hard to pay off my bills," Sergeant Worland said.
Years earlier, as a new Airman, credit-card companies had wooed him.
"We bought a house at 21," he said. "After that, companies were willing to give credit cards with ungodly limits."
Plane tickets home, electronic equipment, dining out and hundreds of charges later, Sergeant Worland found himself in the middle of about $30,000 of debt.
He grew overwhelmed. He found a debt consolidation company and checked it through the Better Business Bureau. Then he started paying them $455 a month to settle his debts.
"It probably was written in fine print somewhere," Sergeant Worland said. "They take over your accounts and wait to save enough money to bargain with. The whole while, you accumulate late fees, and it looks like you're just not paying credit cards."
Two years later, the Air Force Central Adjudication Facility flagged his credit, issued a suitability determination and suspended his clearance application.
After realizing what happened, Sergeant Worland made some phone calls. Now his debt is paid. But he's still proving to the Air Force that he can manage his money - a process which can take six to eight months, Mr. Krogh said. In addition to losing his badge and e-mail access, shift schedules need to be rearranged for him. He works in the 727th Air
Mobility Squadron air terminal operations center but can't be told when planes are coming or going.
"It's kind of crazy; you never know what you appreciate 'til it's gone," Sergeant Worland said. Although his coworkers have been supportive, Sergeant Worland said he hopes that other Airmen don't have to learn the hard way.
"Where financial matters are concerned," Mr. Krogh said, "the bottom line to protecting your clearance is to be aware of your credit rating, make payments on time, and seek financial assistance with problems before they get out of hand."
Free Money Tips
Many think that if they ignore their debt, it will go away, said Lona Berndt, base community readiness consultant at the Airman and Family Readiness Center.
"Personal ownership is big," Ms. Berndt said. "You can't change what you don't acknowledge."
If you're hiding purchases from your spouse, only able to make minimum payments on credit cards, have credit cards that are all "maxed" out, or juggle which bills to pay each month, then these are signs that you probably need help, she said.
Help is free.
"I try to say to people, 'You're very fortunate to work in an organization like the Air Force where people care about your success," Ms. Berndt said.
The AFRC trains all first-term Airmen on managing personal finances. It also offers individual counseling and training by appointment.
"Oftentimes, when people come in for individual appointments, you can see it in their body language; they're looking down at the ground, embarrassed, ashamed, upset," Ms. Berndt said. "But they perk up when I tell them, 'You can change'; the thing people need to learn is that doesn't have to be their destiny. You can change that."
Sergeant Worland agreed that the wisdom provided by those like Ms. Berndt changes lives.
"Everybody hears it," he said. "They've got the right tools here. Basically, it just comes down to self control and discipline - saying, 'Naw, I don't need that.'"
Fit to Get Rich
The road to riches starts with personal accountability and is paved with knowledge.
"A lot of times, people just don't have the skills," Ms. Berndt said. "We can learn accounting in high school, but there's nothing to teach us about personal finances. No one was there to tell me, 'Hey, you can be a millionaire at age 60.'"
Airmen can start by tracking spending habits in a small notepad for a month (spending trackers are free at the AFRC, along with investment calculators, personal spending plan guides and other resources).
Tracking spending habits causes people to think, especially before using a credit card to pay for routine purchases, Ms. Berndt said.
Next, outline a realistic spending plan.
"Sometimes people hear the word 'budget,' or 'spending plan' and think, 'my life is not going to be fun,'" she said. "But if you establish a good spending plan, it takes into account those life expenses, but does it in a way you can afford."
Once the spending plan is established, the next step is to create an emergency fund. Ideally, it should at least be three to six months worth of pay; but just $1,000 can avert a crisis, Ms. Berndt said.
"Unfortunately things will come up, whether it's car repairs, problems with utilities, or something happens with your kids. Save up so don't have that deck of cards crash."
Lastly, write down specific goals.
Long-term goal setting can make a young Airman rich. Ms. Berndt can provide investment guidance that, with proper planning and a clear understanding of their options, could steer an Airman toward millions by retirement.
"We don't tell people where they should put their money, we provide a better understanding of basic investment vehicles," she said.
She also helps people understand that they are the owners of their own business, and they manage that business by staying on top of their Leave and Earnings Statement.
But, the skills unravel without personal accountability. Although Sgt. Worland pays cash now for everything, he still gets tempted to charge.
"You look at something and think, 'I could just have that right now.' But if I need anything, I'll save," he said. "Just wait and be patient. You'll eventually get what you want."
