The Military Pay Chart http://www.dfas.mil/militarymembers/payentitlements/militarypaytables.html BASIC PAY — EFFECTIVE JANUARY 1, 2016 Grade 2 or less Over 2 Over 3 Over 4 Over 6 Over 8 Over 10 Over 12 Over 14 Over 16 Over 18 O-10 O-9 1 O-8 1 9,946.20 10,272.00 10,488.30 10,548.60 10,818.60 11,269.20 11,373.90 11,802.00 11,924.70 12,293.40 12,827.10 O-7 1 8,264.40 8,648.40 8,826.00 8,967.30 9,222.90 9,475.80 9,767.70 10,059.00 10,351.20 11,269.20 12,043.80 O-6 2 6,267.00 6,885.30 7,337.10 7,337.10 7,365.00 7,680.90 7,722.30 7,722.30 8,161.20 8,937.00 9,392.70 O-5 5,224.50 5,885.70 6,292.80 6,369.60 6,624.00 6,776.10 7,110.30 7,356.00 7,673.10 8,158.50 8,388.90 O-4 4,507.80 5,218.20 5,566.50 5,643.90 5,967.00 6,313.80 6,745.80 7,081.50 7,314.90 7,449.30 7,526.70 O-3 3,963.60 4,492.80 4,849.20 5,287.20 5,540.70 5,818.80 5,998.20 6,293.70 6,448.20 6,448.20 6,448.20 O-2 3,424.50 3,900.30 4,491.90 4,643.70 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40 O-1 2,972.40 3,093.90 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 O-3 3 5,287.20 5,540.70 5,818.80 5,998.20 6,293.70 6,543.30 6,686.70 6,881.40 O-2 3 4,643.70 4,739.40 4,890.30 5,145.00 5,341.80 5,488.50 5,488.50 5,488.50 O-1 3 3,740.10 3,993.60 4,141.50 4,292.40 4,440.60 4,643.70 4,643.70 4,643.70 W-5 W-4 4,095.90 4,406.10 4,532.40 4,656.90 4,871.10 5,083.20 5,298.00 5,620.80 5,904.00 6,173.40 6,393.90 W-3 3,740.40 3,896.40 4,056.30 4,108.80 4,276.20 4,605.90 4,949.10 5,110.80 5,297.70 5,490.30 5,836.50 W-2 3,309.90 3,622.80 3,719.40 3,785.40 4,000.20 4,333.80 4,499.10 4,661.70 4,860.90 5,016.30 5,157.30 W-1 2,905.50 3,218.10 3,302.10 3,479.70 3,690.00 3,999.60 4,144.20 4,346.10 4,545.00 4,701.60 4,845.30 E-9 4 4,948.80 5,060.70 5,202.30 5,368.20 5,536.20 E-8 4,050.90 4,230.00 4,341.00 4,473.90 4,618.20 4,878.00 E-7 2,816.10 3,073.50 3,191.40 3,347.10 3,468.90 3,678.00 3,795.60 4,004.70 4,178.70 4,297.50 4,423.80 E-6 2,435.70 2,680.20 2,798.40 2,913.60 3,033.60 3,303.30 3,408.60 3,612.30 3,674.40 3,719.70 3,772.50 E-5 2,231.40 2,381.40 2,496.60 2,614.20 2,797.80 2,989.80 3,147.60 3,166.20 3,166.20 3,166.20 3,166.20 E-4 2,046.00 2,150.40 2,267.10 2,382.00 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40 E-3 1,847.10 1,963.20 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 E-2 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 Fly - Fight - Win E-1 5 1566.90
Allowances Continued… ALLOWANCES Family Separation Allowance All Pay Grades: $250 Basic Allowance for Subsistence (Effective Family Subsistence Supplemental Allowance January 1, 2016) (Effective October 1, 2010) Officers: $253.63 All Pay Grades Enlisted: $368.29 Not to Exceed $1100.00 Clothing Allowances (Effective October 1, 2015) Standard Initial Clothing Allowance (Enlisted Members Only) Army Navy Air Force Marine Corps Male Female Male Female Male Female Male Female 1,643.45 1,888.07 1,797.42 1,982.74 1,389.18 1,597.93 2,007.82 1,945.65 Cash Clothing Replacement Allowance (Enlisted Members Only) Army Navy Air Force Marine Corps Basic Male Female Male Female Male Female Male Female 327.60 349.20 320.40 327.60 248.40 252.00 403.20 392.40 Standard 468.00 496.80 457.20 468.00 352.80 360.00 601.20 576.00 Special 0 0 648.00 669.60 0 0 0 0 Fly - Fight - Win
BAH Rates 2016 BAH (Basic Allowance for Housing) E-1 thru E-4: In dorms/ Approx. $7.80 E-1 thru E-4: Without dependents / $855.00 E-1 thru E-4: With dependents / $1059.00 According to the 2015 Defense Travel Management Study, at Moody AFB: 75% of BAH goes toward rent (on avg.) 25% of BAH goes toward utilities (on avg.) • BAH used to include the cost of renter’s insurance, but in 2015, this changed. You are expected to assume a 1% out of pocket cost for this item. Input new BAH into spending plan in projected category Example: $7.80 current, $855/$1059 projected Fly - Fight - Win
Basic Allowance for Housing www.defensetravel.dod.mil Fly - Fight - Win
Special Pays INCENTIVE AND SPECIAL PAYS Aviation Career Incentive Pay Years of Aviation Service 2 or Over 2 Over 3 Over 4 Over 6 Over 14 Over 22 Over 23 Over 24 Over 25 less 125.00 156.00 188.00 206.00 650.00 840.00 585.00 495.00 385.00 250.00 Career Enlisted Flyer Incentive Pay Years of Aviation Service 4 or less Over 4 Over 8 Over 14 150.00 225.00 350.00 400.00 Hazardous Duty Incentive Pay (Crew Member- Non-AWAC) Pay Pay Pay Pay Pay Grade Amount Amount Amount Amount Amount Grade Grade Grade Grade 150.00 250.00 250.00 240.00 165.00 O-10 O-5 W-5 E-9 E-4 O-9 150.00 O-4 225.00 W-4 250.00 E-8 240.00 E-3 150.00 O-8 150.00 O-3 175.00 W-3 175.00 E-7 240.00 E-2 150.00 O-7 150.00 O-2 150.00 W-2 150.00 E-6 215.00 E-1 150.00 O-6 250.00 O-1 150.00 W-1 150.00 E-5 190.00 Hazardous Duty Incentive Pay (Non-Crew Imminent Danger Pay/Hostile Fire Pay Member) ALL GRADES – 150.00 ALL GRADES – 225.00 Diving Pay HDIP (Parachute, Flight Deck, Demolition, & Others) Officers – 240.00 (Max) Enlisted – 340.00 (Max) All Grades – 150.00 (Member qualified for HALO Pay – 225.00). COMBAT ZONE TAX EXCLUSION For other pays or specific requirements for the pays cited in this table, go to the web at: Basic pay for the MCPO of the Navy, CMSgt of the AF, Sergeant Major of the Army or Marine Corps, basic pay is $7,816.20. Combat Zone Tax Exclusion for O-1 and http://www.dtic.mil/comptroller/fmr/07a/index.html above is based on this basic pay rate plus HFP/IDP ($225). Fly - Fight - Win
Income Definitions Total pay + allowances = Gross Income Gross income – tax deductions – additional deductions such as allotments= Net Income You can think of “net income” as the amount of money you “take home” from each paycheck . Fly - Fight - Win
Net Income Example E-5 over 8 years w/dependents Total compensation (A) $4,774.64 Base Pay $2,845.20, BAS $348.44, BAH $1,581.00 Total tax deductions (B) $351.29 SGLI (self/family/spouse), TSGLI, AFRH, federal taxes, FICA (social security/medicare) Total additional deductions (C) $263.83 Monthly savings $200, monthly investing $63.83 Net Income (A-B-C) $4,159.52 Fly - Fight - Win
Deductions Federal Taxes 2016 FICA Taxes - Social Security (6.2% of Base Pay) - Medicare (1.45% of Base Pay) SGLI AFRH Possibly: State Taxes FSGLI Meal Deduction Fly - Fight - Win
Budgeting Budget about 35% of your net income for rent/utilities. Do you have an emergency fund? Short term goal: $1,000 Long term goal: 3-6 months of living expenses One-time Expenses: Security deposit (normally equal to one month’s rent) Utility deposits/activation fees Moving expenses (gas, eating out, etc.) Pet Deposit Furnishing residence (What about “Rent -to-Own ”?) Setting up household (cleaning supplies, food, etc.) Fly - Fight - Win
Goals Unrealistic Goals Vs. Realistic Goals Short Term Now to 2 years Intermediate Term 2 to 5 years Long Term Beyond 5 years Fly - Fight - Win
Savings and Future Plans Emergency Savings Fund: At least $1,000 Experts recommend setting side 3-6 months of living expenses Future Planning Goal Specific Separation/Retirement Ball Park Estimate www.asec.org Fly - Fight - Win
How do we talk about money? What is the dollar amount that separates a rich man and a poor man? Fly - Fight - Win
What is a spending plan? Simply a plan to put your money where you want it to go! Your A&FRC can help you develop a personalized spending plan! Fly - Fight - Win
SPENDING PLAN ACTIVITY First cash flow plan is a draft. Most of your variable expenses will be estimates. For a more realistic spending plan, track your expenses or review past banking/credit card statements. Revise the original spending plan, incorporating goals based upon changes you’d like to make. Complete spending plan worksheets sections A – J Debt-to-income ratio Income - (Living Expenses + Monthly Debt Pmts) = surplus/deficit/or zero Fly - Fight - Win
Financial Readiness (reference AFI 36-2906) 7.1 Members will pay their just financial obligations in a proper & timely manner 7.2 Will provide adequate financial support of a spouse or child/relative …(court order for child support) 7.3 Will comply with 7.2 for garnishment of wages Fly - Fight - Win
Deployment Readiness Financial Considerations How will your budget change during deployment? Expenses in deployed location Expenses back at home Who will be managing finances? What are your goals? Make a plan for the extra money you will be receiving. (e.g. savings, TSP, debt mgmt.) Are your financial and legal documents organized? Do you have an emergency fund? Fly - Fight - Win
Tips for Success Complete budget before you depart; revisit regularly. Keep track of account balances, due dates for bills, etc. Practice financial fidelity: communicate with spouse about out-of-the-ordinary expenses, bills, etc. Set- up “Active Duty Alert” on credit reports. Organization is key: know where your documents are, keep list of accounts/contact info, etc. Set- up “Auto - Pay” on accounts. Update car insurance. Fly - Fight - Win
Personal & Family Financial Readiness Review LES monthly. Understand entitlements/deductions/allotments . Develop Spending Plan. Revisit regularly. Save for emergencies. Plan for deployments. Fly - Fight - Win
Intro & Spending Plan Questions? Fly - Fight - Win 42
What is the Difference Between Saving and Investing? Saving: To meet short term goals Emergencies Investing: Money set aside for future income, benefit, or profit to meet long term goals What is your “risk tolerance?” Fly - Fight - Win
Savings & Investment Tools & Options Savings Account Certificates of Deposit U.S. Savings Bonds Money Market Accounts/Funds Fly - Fight - Win
Other Options Stocks Bonds Mutual Funds Real Estate Collectibles Fly - Fight - Win
Maximize your Money IRA (Individual Retirement Account) Traditional ROTH Education Any mutual fund, stock, bond, etc. can be part of an IRA account Research companies and review the prospectus before sending any money. Fly - Fight - Win
New AF Blended Retirement System Under the current system, monthly retired pay is calculated as 2.5 percent times the number of years the member served times the average of the highest 36 months of basic pay the member received. All members who enter service, or who sign a contract to serve, on or before December 31, 2017 are grandfathered into the current system, but can opt-into the new BRS. As of 1 Jan 2018 – all joining members will automatically be enrolled in BRS. After 2 years of service – the first 3% of member contribution is matched dollar for dollar by the Service. The next 2% is matched 50 cents on the dollar. Example – if a member contributed 5% of pay to the TSP, the Service will contribute another 4% to the member’s TSP account. Militarypay.defense.gov Fly - Fight - Win
The Power of Compounding Interest Ben vs. Arthur: Ben starts investing at age 19. He invests $2,000/year for 8 years. Avg. rate of return: 12% His contributions= $16,000 Arthur starts investing at age 27. He invests $2,000/year for 39 years. Avg. rate of return: 12% His contributions= $78,000 Even though Arthur invested 23 more years than Ben….Ben has more in his account at age 65… all because of compounding interest! Fly - Fight - Win
Thrift Savings Plan: www.tsp.gov Retirement savings and investment plan for Uniformed military members serving on active duty, and members of the Ready Reserve or National Guard of each service in any pay status. Contributions are pre or post-tax dollars then taxed at withdrawal/distribution at current tax rate (tax-deferred). Traditional TSP vs. Roth TSP Can contribute to both Traditional & Roth Traditional contribution limit is $6,000 Roth contribution limit in 2016 is $18,000 ($53,000 if in a combat zone) Number of options available upon separation/retirement: leaving money in TSP, partial/full withdrawal, purchase an annuity, or a combination. Account can be accessed penalty-free at age 59 1/2 Fly - Fight - Win
Thrift Savings Plan: www.tsp.gov Fly - Fight - Win
Traditional vs. Roth TSP The Treatment of… Traditional TSP Roth TSP Contributions Pre-tax After-tax 1 Taxes are deferred *, so less money is Taxes are paid up front* , so more Your Paycheck taken out of your paycheck. money comes out of your paycheck. Transfers allowed from eligible Transfers allowed from Roth 401(k)s, Transfers In employer plans and traditional IRAs Roth 403(b)s, and Roth 457(b)s Transfers allowed to Roth 401(k)s, Transfers allowed to eligible employer Transfers Out Roth 403(b)s, Roth 457(b)s, and Roth plans, traditional IRAs, and Roth IRAs 2 IRAs 3 Tax-free earnings if five years have passed since January 1 of the year you Withdrawals Taxable when withdrawn made your first Roth contribution, AND you are age 59½ or older, permanently disabled, or deceased Fly - Fight - Win
The Benefit of Pre-Tax Investing Regular Savings TSP Savings Basic pay $18,118 Basic pay $18,118 -Tax @ 15% $ 2,718 = Invest 8% $ 1,449 = $ 15,400 $16,669 Invest 8% $ 1,449 -Tax @ 15% $ 2,500 Remainder $ 13,951 Remainder $14,169 $218 more in your pocket!! Based on E-2 with less than 2 yrs service, investing 8% in TSP Fly - Fight - Win
Thrift Savings Plan: www.tsp.gov Contribute in 1% increments up to 100% of your base pay Add 1-100% of any special, bonus or incentive pay IRS elective deferral limit for 2016 is $18,000 Six investment funds: G Fund Government Security Investment Fund When you first start investing in TSP, your contributions will default to the G fund. Fly - Fight - Win
Thrift Savings Plan: www.tsp.gov C Fund F Fund Common Stock Index Fixed Income Index Investment Fund Investment Fund Tracks S&P 500 Tracks Barclays Capital US (Large/medium sized Aggregate Bond index companies) Fly - Fight - Win
Thrift Savings Plan: www.tsp.gov S Fund I Fund Small Capitalization Stock International Stock Index Index Investment Fund Investment Fund Tracks DOW Jones Tracks Morgan Stanley (small/medium sizes Capital Int’l EAFE Index companies) Fly - Fight - Win
Thrift Savings Plan: www.tsp.gov L Funds (Life Cycle Funds) Professionally determined investment mixes Fly - Fight - Win
Savings Deposit Program Total of $10,000 may be deposited during each deployment and will earn 10% interest annually. Must be a SDP-eligible combat zone. Must be receiving Hostile Fire Pay. Deposits may be made in cash, by check, or through allotment. Once started, allotments may be increased/decreased as your financial situation changes. Your allotment will stop upon your departure from the combat zone. Will continue earning interest for 90 days upon return. Money can be withdrawn via request through MyPay. Contact Accounting & Finance for more information. Fly - Fight - Win
Educate Yourself Library Internet Comparison shop for investment companies Compare advertised rates of return to the average and benchmark for that category Beware of investment and insurance scams Fly - Fight - Win
Practical Tips Establish emergency fund first. $1,000 3-6 months of living expenses Use allotments or direct-invest. Pay yourself first! Many companies allow you to invest $50/month. Plan to save/invest a realistic amount (10% is the goal). Fly - Fight - Win
Easy Street! Fly - Fight - Win
Saving & Investment Basics Questions? Fly - Fight - Win 64
Headquarters U.S. Air Force I n t e g r i t y - S e r v i c e - E x c e l l e n c e Banking Airman & Family Readiness Center FTAC Presentation
Banks vs. Credit Unions Banks: Credit Unions: • Generally run by a group of • Democratically controlled by investors with capital members • For profit • Not for profit • Federally insured by the Federal • Insured by the National Credit Deposit Insurance Corporation Union Administration (FDIC) • May offer greater accessibility and • May offer lower-cost services and a wider range of services higher interest rates on savings Fly - Fight - Win
Choosing a Financial Institution: What do they offer? Checking & Savings Accounts Credit cards/debit cards Lines of credit Personal, business, and auto loans Mortgages Online or mobile banking Automatic bill pay International banking Financial planning Investment management Health, home and car insurance Retirement programs Fly - Fight - Win
And what about the fees? Monthly Service Charge Charge per Check Insufficient Funds Overdraft Protection: (Median Fee= $34 for each transaction while in overdraft status) The Consumer Financial Protection Bureau estimates that overdraft and non-sufficient fund fees represent 60% or more of consumer checking account fee income. ATM Use- some financial institutions reimburse you for ATM fees International Transaction Fees Fly - Fight - Win
Banking Questions? Fly - Fight - Win 71
Headquarters U.S. Air Force I n t e g r i t y - S e r v i c e - E x c e l l e n c e Credit and Debt Management Airman & Family Readiness Center FTAC Presentation
Credit Defined • Credit vs. Debt • Benefits of good credit: • keep/obtain a security clearance • obtain lower payments and interest rates on credit cards/loans • buy a home, a car, or just about any “high” ticket item on credit • borrow money quickly to cope with an emergency Fly - Fight - Win
Why Use Credit? Credit can be used: to purchase items today that you couldn’t normally afford and spread the cost over time to make high cost purchases easier and quicker to obtain to conveniently pay for items to obtain frequent flyer miles, points, etc… for “free” items or cash rebates to build upon existing credit by making on-time monthly payments Fly - Fight - Win
“Worthwhile” Debt Provides long term or future value Fly - Fight - Win
“Not so Worthwhile” Debt Food Clothing CDs / DVDs “Entertainment” Items of temporary value Miscellaneous stuff Fly - Fight - Win
Establishing Credit Open checking/savings account Secured credit card Use Military STAR or Club Card wisely, then apply for a national credit card. Use a credit card for small amounts, and pay it off each month to build your credit history. Obtain a small signature loan, put money in savings and make payments as required. Fly - Fight - Win
Choose & Use Credit Wisely Know the interest rates and fees: Purchases Cash advances Transfers from other cards Penalty Fees What is your current balance and limit? What is the minimum payment? When is your payment due? Make payments on-time, every time!!! Fly - Fight - Win
Calculate Your Monthly Interest Charges 1. Divide your APR by 12 months. This gives you a monthly percentage rate. APR of 18%: 18% ÷ 12 months = 1.5% 2. Multiply your balance by this monthly interest rate. The result is your interest charge. On a balance of $500, your interest charge would be $500 x .015 = $7.50 3. Add the interest charge to your balance to determine your new balance. So, your new balance would be: $500 + $7.50 = $507.50 Next month payment calculation $507.50 x .015 = $7.61 so $507.50 + $7.61 = $515.11 Fly - Fight - Win
Tips for Avoiding Credit Pitfalls Ensure debt doesn’t exceed 15% of monthly income Shop around for credit- look for low interest rates, no annual fees, and benefits. (www.bankrate.com) Never lend credit cards to anyone. Check credit report for FREE at www.annualcreditreport.com Fly - Fight - Win
More Tips… Track your spending… purchases can add up fast! Save your receipts and report problems if needed. Pay more than the minimum amount. Fly - Fight - Win
Understanding Terms & Conditions Associated With Credit Truth in Lending Act: Requires creditors to disclose, in writing, the following: Annual Percentage Rate (e.g. cost of the credit expressed as an annual % of the original amount of credit provided) Terms of the loan True costs to the borrower Fly - Fight - Win
Types of Credit Revolving credit Credit cards Installment credit Car loans Mortgage Fly - Fight - Win
Credit Cards vs. Debit Cards Credit Cards Debit Cards Covered by the Truth Covered by Electronic in Lending Act Funds Transfer Act Liability limit = $50 Liability Limit = $50 (if (if fraudulently used) reported w/in 2 business days) or $500 or Right not to pay everything in account + disputed charges line of credit (if fail to report w/in 60 days) Dispute procedures in place Fly - Fight - Win
Stored Value Cards Examples: Gift cards, phone cards, etc. NOT a debit card NOT tied to a checking account NOT covered by any federal law or regulation Dispute procedures established by card issuer Liability limit = value stored on card BLUF: Lose your card = lose your money Fly - Fight - Win
Cost of Credit: Loan Amount $1,000 Interest Rate 19.8% Monthly Payment 3% of balance ($30) # Years to Pay 4 years, 1 month Total Finance Charge $463.84 Visit http://www.powerpay.org Fly - Fight - Win
When is it too much? Monthly Minimum Payments Take Home Pay Debt Divided by Income= Debt Income Ratio (DIR) Example: $250 debt payments = 25% DIR for $1000 take home pay Fly - Fight - Win
When is it too much? (Cont’d) 0 - 5%: Doing well 10 - 15%: Manageable Go on a “credit diet” 20% +: 28%: Maximum for a mortgage 36%: Combined maximum for consumer credit debt and a mortgage Fly - Fight - Win
Credit Reports/Scores Your credit report contains: Personal info Employer info 7 – 10 years history Inquiries (“soft /hard”) Negative indicators: Bankruptcy Charge-off and collection info http://www.experian.com/credit_report_basics/pdf/samplecreditreport.pdf Fly - Fight - Win
Cre redit dit Scor ores How Do I What is a Why Should Influence Credit I Care? Score? My Score? • Three digit number • 65% based upon • Influences what generated by a payment history credit products will mathematical and amount owed algorithm based on be available to you • Pay on time and the cost of information in your • Keep balances well credit report those products below credit limit (not • • Lower scores = Fair Isaac & Co. more than 10% of (FICO) – Most overall higher cost; available credit) common or even inability to • Check your report • obtain credit FICO Range : 300 - and correct errors 850 Fly - Fight - Win
Credit Score Recipe 35% 30% 10% 15% 10% Payment History Outstanding Debt Length of Credit New Credit Types of Credit Fly - Fight - Win
Credit’s Impact $16,000 Vehicle Loan $406.29 $450 $372.29 $400 $339.95 $324.42 $309.32 Car Payment $294.66 $350 $300 $250 $200 $150 $100 $50 $0 500-559 560-619 620-674 675-699 700-719 720-850 Credit (FICO) Score Fly - Fight - Win
Credit’s Impact $200,000 Home Loan $395,000 $400,000 $353,000 $350,000 $308,000 Total Interest Paid $300,000 $250,000 $227,000 $250,000 $217,000 $200,000 $150,000 $100,000 $50,000 $0 500-559 560-619 620-674 675-699 700-719 720-850 Credit (FICO) Score Fly - Fight - Win
How to Improve Your Credit Score Pay on time…every time! Pay more than the minimum Limit yourself to 1 credit card Keep your debt level low Don’t “max” out your credit card Check your myFICO Fly - Fight - Win
FIC ICO O Scor ore Fly - Fight - Win
Credit and Debt Management Security Clearances Fly - Fight - Win
Security Clearance Financial Considerations Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds. DoD Directive 5200 2-R Appendix 8 Fly - Fight - Win
Credit Management and Security Clearances Inability or unwillingness to satisfy debts Irresponsible spending History of not meeting financial obligations Deceptive or illegal financial practices (theft, fraud, income tax evasion) Financial problems linked to drug abuse, alcoholism, and gambling problems Unexplained affluence Fly - Fight - Win
What about your Government ?? Accrual voucher and use split disbursement Know what is authorized: Meals Lodging Rental car Cash advances for official expenses only Airlines tickets for official travel Fly - Fight - Win
Servicemember’s Relief Act Lower interest rates on debts incurred prior to joining the military to 6% (w/exceptions) Exempting the military member from paying property taxes on vehicles (w/exceptions) Exempting the military member from paying state taxes on vehicles (w/exception) Fly - Fight - Win
Credit Problems? Talk to Creditors Visit Power Pay (www.powerpay.org) Contact your Airman & Family Readiness Center Contact the Legal Office Contact a Consumer Credit Counseling Service Fly - Fight - Win
Credit and Debt Management Questions? Fly - Fight - Win 111
Headquarters U.S. Air Force I n t e g r i t y - S e r v i c e - E x c e l l e n c e Understanding the “Car Buying Game” Airman & Family Readiness Center FTAC Presentation
Shopping with Confidence 1 Step Fly - Fight - Win
Consider Your Needs WANTs vs. NEEDS What’s important to you? Style Nationality of origin Performance Body size – sub-compact, compact, midsize, etc. Utility Body style – 2-door, 4-door, convertible, SUV, etc. Safety Engine size Handling Possibly higher insurance rates Economy Transmission – manual, automatic Price Drive train – 2-wheel drive, 4-wheel drive Image Reliability 1 Step Fly - Fight - Win
Consider Your Needs and Budget What equipment options do you want? Air conditioning Power windows Power locks Tilt steering Cruise control Sunroof Sound system Determine approx. monthly costs for payment, insurance, 1 gas, and maintenance. Make those payments to yourself Step (savings acct.) for 1-3 months. Can you afford it? Ad Valorem Tax Fly - Fight - Win
Where and When to Shop Where: “Auto Malls” Neighborhood dealerships Automobile and truck shows Used car marts Neighborhood used car lots Private parties Public and Police auctions When: Salesmen have weekend quotas to meet… Shop on weekdays or weekday evenings Especially the last few days of the month 1 Step Fly - Fight - Win
Your Car Shopping Goals On your first shopping trip: See which cars fit your needs and budget- Can accomplish these goals by following a step-by-step shopping game plan… 1 Step Fly - Fight - Win
Your Car Shopping Game Plan Greet the salesman. Tell him exactly what you want to see. Look at the factory window sticker. Inquire about other versions of the same car (DX, SE, LX). Sit inside the car. Test drive the car. Don’t baby the car; drive like you normally would. After the drive, ask for a brochure. Ask more questions. Thank the salesman. 1 Leave! Step Fly - Fight - Win
Used Car Shopping Tips Problem - Never quite sure what you are getting. Useful tips: Examine body of vehicle Examine interior Look under hood Look under vehicle Check odometer Check the car’s VIN Use CARFAX or another method to checkout the car’s history. Have your mechanic inspect vehicle before you buy. If the seller won’t allow this, be suspicious. 1 Step Fly - Fight - Win
Choosing the Right Car 2 Step Fly - Fight - Win
Clear Up Your Confusion Many of the new and late-model vehicles are alike. The perfect car does not exist. This is not a life-or-death situation. You may need to re-examine your needs. You may need to re-examine your budget. 2 Step Fly - Fight - Win
Do Some Additional Research Manufacturer’s Brochures Auto and Consumer Magazines US Government Safety Publications and Websites Auto Manufacturers’ Websites 2 Step Fly - Fight - Win
Making the Big Decision Once satisfied with shopping and research… Narrow down choices: Which car is the right one for you? The car that’s right for you is the one that fits your needs and your spending plan… And feels right! 2 Step Fly - Fight - Win
Preparing to Buy 3 Step Fly - Fight - Win
Determining the Invoice Price New Cars and Trucks www.edmunds.com Used Cars and Trucks www.kbb.com 3 Step Fly - Fight - Win
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