Top 5 Financial Tools Every Veteran Should Know About
Going from military service to civilian life with a financial backpack isn’t easy. Veterans must feel they are making the right decisions in four main areas: buying a home, managing debt, saving for retirement, etc.
Luckily, they have the expert financial tools to keep them going without worrying about taking on debt. This article mentions the top 5 financial tools for veterans to improve their long-term financial health.
Veterans Benefits Banking Program (VBBP)
One of the best parts about the VBBP is free financial counseling. It gives veterans one-on-one tips on planning for the future, budgeting, saving, and managing debt. That’s especially good for those looking to reestablish a financial footing after service.
Additionally, for veterans managing multiple debts, exploring a VA debt consolidation loan through participating banks can simplify their financial obligations. If you have a few payments you’re trying to keep on top of, they can be made into one loan with lower interest (and thus lower monthly payments).
VA Home Loan Program
Veteran home ownership has been a milestone with the VA Home Loan program. That benefit is rare compared with other loan options, but if veterans qualify, they can buy a home with no down payment.
The interest rates are competitive, and there is no need to make a down payment. It directly translates to thousands of dollars in savings. You also don’t have to deal with Private Mortgage Insurance. If veterans don’t have the best credit scores, then for their VA guarantee portion of the loan, at least they have a chance of qualifying to get this loan again.
The program also offers foreclosure prevention services to veterans in a foreclosure situation that could harm them financially. Because of its features, the VA home loan program is such a powerful homeownership attainment and retention tool.
GI Bill Education Benefits
The GI Bill is not just for tuition. The benefit includes a monthly housing allowance and book and supply purchase money, and can be transferred to a spouse or child if the veteran is not utilizing the benefit. Because of this, if veterans want to take it to the next level and get a college degree, certification in a technical field, or online courses toward their career objectives, they can.
Higher education allows individuals to receive the money or education needed to do such jobs and use that money. It also helps veterans get access to education without accumulating debt.
VA Disability Compensation
VA Disability Compensation is a tax-free monthly payment you may be eligible to receive if you are a disabled vet having service-connected disabilities to cover lost potential earnings and other additional medical expenses.
You are compensated as much as your disabilities are severe and the number of dependents. For example, VVSG rates are attained by some veterans who have severe or multiple disabilities. This financial help is also used to make revenue for day-to-day expenses and to participate in other benefits like health care services, adaptive housing grants, and vocational rehabilitation programs.
Disability compensation is a lifeline for men, bringing veterans peace of mind and stability. They know everything is okay but need to worry about getting healthy.
Thrift Savings Plan (TSP)
TSP is a tool that helps veterans in planning for retirement. Similar to other retirement plans, such as the 401 (k), users can save through tax advantages on pre-tax and post-tax contributions.
Veterans can add to the TSP they put away when they were in the military if they leave the military. TSP has a low acquisition cost and many different ways to invest toward big gains in the future.
People who contribute to your retirement will have a lot of money when it comes to retirement, and compound interest is powerful. Even if you start later, the TSP is a cornerstone of a sensible retirement plan, and with its low fees and tax advantages, it can work for veterans, too.
Conclusion
Veterans aren’t like civilians: they need different resources, and fortunately, several financial tools are available. The VA Home Loan Program and the GI Bill are tools to help soldiers take those steps toward homeownership and open the door to a career.
Fortunately, veterans with service-connected disabilities can use both VA Disability Compensation and the Thrift Savings Plan to secure money in retirement. Finally, the VBBP provides access to essential banking services and debt management solutions like the VA debt consolidation loan.
All those financial problems that come with going from the Army to the civilian sector shouldn’t hold you back from crafting a financially secure, stable future. Essentially, these tools assist you in making the immediate relief you’re after happen and the long-term success.
