Winter 2004-05
Michelle Singletary has developed a reputation for cutting through the gobbledygook typical of business writing, earning a following among readers that usually find most financial issues too difficult to penetrate.
Singletary writes a twice-weekly syndicated column, "The Color of Money", and is a personal finance commentator for National Public Radio. In 2004, she published her first book, "Seven Money Mantras for a Richer Life: How to Live Well With the Money You Have." (Random House)
She discussed with Military Money™ her common-sense lessons about life and money – and how they can apply to military families.
MM: How does a family make ends meet on a military salary?
SINGLETARY: No matter what kind of money you make, you absolutely must have a sense of what's coming in and what's going out. That means the dreaded "b" word: budget! It's important for both the husband and the wife to understand the family finances. In our family, we sit down together and look at our budget every couple of months.
MM: Given the limitations of a military income, is pinching pennies going to be a fact of life?
SINGLETARY: Sure, for the younger members. But I hear so many stories about young military men going out and buying a fancy new car. Buy a used car instead! The big message I would want to leave with military folks, not making much money, is to just take it slow. Go a year or two before making major purchases so you develop a stronger sense of your budget and your priorities.
MM: How does one develop this mentality of making the best with what you have?
SINGLETARY: You need to decide what you want out of life. Do you want to save toward a down payment on a house? Do you want to send your kids to college? Is that fancy car so important? You can't live in your car, and you can't send your car to college! When you set priorities, all those pressures you may feel about things like a car, new furniture, fancy clothes, electronic equipment – they just aren't that important, because you know what you really want.
MM: What are some of the things you do on a day-to-day basis to save money?
SINGLETARY: Every time I go to spend money on something, I ask myself, "Do I really need this? Or do I want this? Is there anything better that I could do with this money?" You'll find that at least sometimes you'll put stuff back. You'll know that the money would be better spent toward one of the priority items in your life.
MM: What can parents do to teach their kids these same values?
SINGLETARY: Set your priorities, and let your kids know what they are. When my nine-year-old asks for something and I say no, I don't just say that I don't have the money. I have an honest conversation with her. I keep the message positive and consistent. She'll put her hands on her hips and give me that look, but she knows we're keeping our focus on things that are most important for her and our family. I think too many people forget that the best thing they can do for themselves and for their kids is to maintain a sense of financial security.
MM: What is your view of payday lenders, who often set up shop near military bases?
SINGLETARY: I understand why people are tempted to use these services, but it's dangerous because you're using money you haven't yet earned. You'll never come out ahead. Many people don't realize that with credit card bills and other bills, they can call and possibly work something out. Never take out a payday loan.
MM: Is a military career a sound financial decision for the long run?
SINGLETARY: The decision to serve your country is honorable. Since the pay isn't up there with some jobs in the private sector, you should go into it with the realization that you'll need to do a better job of handling your money than other people. But a lot of benefits come with it: medical care, commissary privileges, paid retirement. My brother-in-law served 20 years in the Air Force and has never had any regrets.
MM: What is one piece of financial advice you would give to military families?
SINGLETARY: Priorities lead to prosperity. You can live well with the money you have. Success is not measured by the amount of stuff you have. You are serving your country; you already are a success. You will be able to get what you really want in life. It will take time, but that's OK.