WEBVTT 00:05.670 --> 00:07.670 One of the many benefits of serving 00:07.670 --> 00:09.503 your country is getting a steady 00:09.503 --> 00:11.448 paycheck , and when you have money 00:11.448 --> 00:13.670 coming in , it's a smart idea to have a 00:13.670 --> 00:15.837 game plan or spending plan in place to 00:15.837 --> 00:17.726 make the most of your hard earned 00:17.726 --> 00:19.948 dollars . Let's start with the basics . 00:20.030 --> 00:21.974 Service members are typically paid 00:21.974 --> 00:24.350 twice a month on the 1st and 15th . 00:24.659 --> 00:26.548 Your paycheck can include several 00:26.548 --> 00:28.770 components such as basic pay , special 00:28.770 --> 00:31.319 and incentive pays housing allowances , 00:31.489 --> 00:33.045 meal allowances , and other 00:33.045 --> 00:35.211 entitlements . You'll learn more about 00:35.211 --> 00:37.433 each of these during training , but for 00:37.433 --> 00:39.378 now review the tables available at 00:39.378 --> 00:43.014 Dfast.mil/military . Members , these 00:43.014 --> 00:45.014 tables will give you a sense of how 00:45.014 --> 00:47.236 much monthly basic pay rates are before 00:47.236 --> 00:49.347 taxes . Once you understand what will 00:49.347 --> 00:51.514 be coming in every month , it's a good 00:51.514 --> 00:53.625 idea to also look closely at what you 00:53.625 --> 00:55.514 will have going out . Ideally you 00:55.514 --> 00:57.403 should create a plan for two time 00:57.403 --> 01:00.174 periods . First , your time and initial 01:00.174 --> 01:03.014 entry training , and second , for the 01:03.014 --> 01:05.070 next stage of your journey after you 01:05.070 --> 01:07.125 graduate because your expenses could 01:07.125 --> 01:09.070 change considerably once you're no 01:09.070 --> 01:11.014 longer in training . This approach 01:11.014 --> 01:13.014 should help you plan better , avoid 01:13.014 --> 01:15.070 surprises , and help position you to 01:15.070 --> 01:17.181 begin saving money . Here are 4 steps 01:17.181 --> 01:19.347 to help you create a spending plan for 01:19.347 --> 01:21.458 each of these time periods . Step 1 , 01:21.699 --> 01:23.643 understand your upcoming financial 01:23.643 --> 01:25.532 situation . Know what you'll have 01:25.532 --> 01:27.866 coming in and review your monthly bills , 01:27.866 --> 01:30.199 paying close attention to the due dates . 01:30.199 --> 01:32.310 You'll want to be sure to have enough 01:32.310 --> 01:34.477 money available to pay your bills when 01:34.477 --> 01:36.699 they are due . Step 2 , know where your 01:36.699 --> 01:39.419 money should go . Experts often suggest 01:39.419 --> 01:42.690 the following Save and or invest 10 to 01:42.690 --> 01:45.779 15% of your pre-tax pay . Determine how 01:45.779 --> 01:47.739 much you'll need to set aside for 01:47.739 --> 01:49.961 shorter term goals like establishing an 01:49.961 --> 01:52.183 emergency fund , as well as longer term 01:52.183 --> 01:54.459 goals like retirement . Limit 01:54.459 --> 01:56.403 transportation costs including car 01:56.403 --> 01:58.339 payment , insurance , gas and 01:58.339 --> 02:00.779 maintenance to about 15 to 20% of your 02:00.779 --> 02:03.500 pre-tax pay . And if you decide to live 02:03.500 --> 02:05.580 off base in the future , limit your 02:05.580 --> 02:07.779 housing expenses including rent or 02:07.779 --> 02:10.419 mortgage , taxes , utilities and 02:10.419 --> 02:12.641 maintenance to your basic allowance for 02:12.641 --> 02:15.490 housing or about 25% of pre-tax pay . 02:16.179 --> 02:19.570 Step 3 , create a plan and stick to it . 02:19.889 --> 02:21.945 Build a plan for setting aside money 02:21.945 --> 02:24.167 and limiting how much you'll spend each 02:24.167 --> 02:26.333 month per category . Set monthly goals 02:26.333 --> 02:29.000 and do your best to stick to them . And 02:29.000 --> 02:32.160 finally step 4 , make adjustments . 02:32.320 --> 02:34.431 Keep an eye on your plan as your life 02:34.431 --> 02:36.598 and income change . For example , once 02:36.598 --> 02:38.376 you graduate from initial entry 02:38.376 --> 02:40.830 training as we already mentioned , so 02:40.830 --> 02:42.940 that's it . And now it's up to you 02:43.360 --> 02:45.527 build your own plan by downloading the 02:45.527 --> 02:47.749 free spending plan worksheet located at 02:47.749 --> 02:50.119 Finred.usa Learning.gov .