Before You Take on Debt
Debt isn’t something you jump into blindly. To make sure you consider all the variables, grab a pen and paper, and analyze its RIFF (Repayment Terms, Interest Expense, Future Income, Future Situation).
Repayment Terms
How long will it take to pay off? Will it travel with you to your next duty station? If you need to stretch out the repayment terms just to afford the payment, it’s probably not a good idea. Usually, the longer you pay, the more you pay.
Interest Expense
What’s the total cost of the debt going to be by the time it’s paid off? Compare the purchase price to the total of your future payments and you will probably be astonished at how much interest you’re actually paying.
Future Income
Even if you can afford your payments today, you should be fairly certain that you will be able to continue making them until the debt is paid off. What will you do if you can no longer afford the payment some day?
Future Situation
What looks like a good decision today might not look so good three or four years from now. For example, before taking on loans for cars, motorcycles, ATVs, boats, etc. as a military family, think about how you might handle a PCS to a location where the vehicle isn’t practical; especially if you might owe more on it than it’s worth at that time.
MilLife Milestones
Financial Readiness
Before You Take on Debt
Debt isn’t something you jump into blindly. To make sure you consider all the variables, grab a pen and paper, and analyze its RIFF (Repayment Terms, Interest Expense, Future Income, Future Situation).
Repayment Terms
How long will it take to pay off? Will it travel with you to your next duty station? If you need to stretch out the repayment terms just to afford the payment, it’s probably not a good idea. Usually, the longer you pay, the more you pay.
Interest Expense
What’s the total cost of the debt going to be by the time it’s paid off? Compare the purchase price to the total of your future payments and you will probably be astonished at how much interest you’re actually paying.
Future Income
Even if you can afford your payments today, you should be fairly certain that you will be able to continue making them until the debt is paid off. What will you do if you can no longer afford the payment some day?
Future Situation
What looks like a good decision today might not look so good three or four years from now. For example, before taking on loans for cars, motorcycles, ATVs, boats, etc. as a military family, think about how you might handle a PCS to a location where the vehicle isn’t practical; especially if you might owe more on it than it’s worth at that time.
MilLife Milestones
Financial Readiness
Our Blogs
Disaster Preparedness: A Military Spouse’s Financial Readiness Guide
National Preparedness Month is a crucial reminder of the potential impact of both natural and man-made disasters. As a military spouse with frequent moves, you’ll want to know the risks at each duty station and update your plan accordingly. While we hope for the best, being prepared financially can significantly mitigate the stress and hardship…
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Military Consumer Month: Smart Shopping for Military Spouse
Military Consumer Month: Smart Shopping for Military Spouses Feeling empowered to make smart money moves is critical year-round, but this Military Consumer Month is dedicated to raising awareness of the importance of savvy purchasing decisions and maximizing your hard-earned money. The month isn’t just about consumer protections and avoiding scams; it’s about making conscious choices…
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Protect Your Belongings: The Importance of Insurance During a Military Move
Moving is a significant part of military life and let’s face it, packing up your cherished belongings and watching them ride off to your new location can sometimes be unsettling. One way to ease the stress of potential missing or damaged items is having adequate insurance. These simple steps can help you understand the value…
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Honoring the Heart of Our Military: The Resilient Spouses
Military spouses are the unsung heroes of our military community. Their unwavering dedication, resilience and incredible adaptability are the backbone of our military families and communities. Military spouses manage households, raise families, often pursue careers or volunteer tirelessly, all while navigating the unique challenges of military life — frequent moves, deployments, and the emotional toll…
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Giving Military Kids the Tools to Be Financially Capable
Military families are known for resilience, yet the frequent moves, deployments, and changes in income that come with military life can make financial stability feel like a juggling act. But these unique challenges may offer a golden teaching opportunity for military kids. By talking about finances openly and equipping kids with financial skills early on,…
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March Money Moves: Navigating Tax Season While Preparing for Summer Fun
As we welcome the arrival of spring and the promise of warmer weather, it’s easy to get caught up in thoughts of summer plans and family vacations. But with tax season in full swing, it’s important to balance excitement for the upcoming months with a push to wrap up tax season. While those topics couldn’t…
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Communicating with Your Partner About Finances: A February Focus on Financial Wellness
Talking Money with Your Partner As we celebrate loving relationships this month, it’s important to remember that not all conversations come up roses between couples. Sometimes discussing finances can be tricky and stir up negative emotions. Open communication about money is vital for building trust and nurturing a healthy relationship. Whether you’re a new couple…
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Build Financial Wellness from the Ground Up in 2025
There’s something magical about the ball dropping at midnight and turning the page to a new year. For an instant, it feels like you’ve got a clean slate, and anything is possible. In some ways that’s true, but as the calendar page turns, your responsibilities, bills and financial challenges remain. Many people make resolutions to…
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