This is the second part of a two-part column on personal finance. As I mentioned last week, this topic is important and your financial health concerns me.

Let me repeat how strongly I feel about payday lending. It isn’t an answer and it’s not a solution.  Payday loans are a shovel with which to dig a deeper financial hole. Avoid them!

If you have financial problems, seek help - there’s nothing to be ashamed of. Don’t let pride get in the way of getting the right help.  Remember that your Command Financial Specialist is available to help and should be your first stop.

But, the best answer is to not have financial problems in the first place. A great way to avoid financial problems is to plan for your financial future.

Understand your leave and earning statement or pay stub. Keep track of what you earn and keep your eyes on the automatic deductions such as tax withholding, social security (FICA) and allotments. Note and deal with any discrepancies.

Know how much you pay for TRICARE (or other insurance plans), SGLI, and dental insurance. Understand any special pays that you receive and what the rules are about those pays (qualification, etc.). Remember that when you budget, special pays don’t last forever; family separation allowance, sea pay, and COLA are great examples.

Finally, make sure that what gets deposited in your bank account matches what your pay statement indicates. Be careful with checks. Although checks are a great way to avoid carrying a lot of cash (and a good way to avoid the temptation of using a credit card), bounced checks have a high cost.  Not only do most financial institutions charge you a hefty fee when a check bounces, certain states have criminal penalties for writing bad checks. 

Remember, too, that servicemembers can run afoul of the UCMJ.  Consider obtaining overdraft protection on your checking account. Keep your checkbook up to date and balanced; at least once a month is recommended. Remember, never write a check if you don’t have money in your account for it.

Plan and strategize. I can’t emphasize this point enough. Without a family financial plan and without a yearly/monthly/weekly budget you’re setting a course for a monetary shipwreck.  A budget will help you identify where your money is coming from, where it’s going, and how much you have.  Your command financial specialist can assist you with basic budgeting tools, as can the Navy and Marine Corps Relief Society.

You must save!  Why?  First, you and your family will undoubtedly have the need or desire to purchase things of great cost such as homes, vehicles, or appliances. Savings are a great way to purchase those items without resorting to credit or to help offset the initial purchase price.  Second, emergencies will arise. 

Whether medical, transportation, or otherwise, financial emergencies have a big impact on your budget. Experts recommend having up to three months set aside in case of unexpected financial hardship; individual cases will vary, but having money set aside always helps. Third, eventually you’ll want to (or have to) retire. 

Having savings will make that transition easier and will also make your retirement years more enjoyable.  Regardless, pay yourself first and set money aside in a savings account.

Plan and save for your retirement. DoD’s Thrift Savings Plan is an excellent (and fee-free) tool to do so. There are countless other ways to invest and save; I strongly recommend you talk about your retirement goals with a financial advisor or your financial institution.

Filing taxes is a yearly necessity.  Plan for it. Whether you file a very simple 1040EZ or you and your spouse have complex filing that accounts for two incomes, investments, and real-estate, planning can not only make the filing process easier, but also will help you avoid nasty surprises with regard to your tax bill.

The Navy Legal Service Office is the overall coordinator for Navy’s VITA (Volunteer Income Tax Assistance) program and can assist military members with filing or advice on seeking tax assistance outside the Navy. With regard to planning for taxes, make sure that your W-4 (tax withholding statement) is up to date with respect to exceptions and dependents. Your military or civilian personnel office can help you update and submit your W-4.

Don’t budget and plan and then live in a vacuum.  Your spouse is an integral part of your family’s financial plan. 

Both of you should plan the budget together, know how you handle the day-to-day finances (bill paying, credit card spending, etc.), and be aware of your financial goals and priorities. Even if one spouse is the primary manager of family finances, both spouses should have knowledge of the family’s financial plan. Remember, a shared awareness creates family financial harmony.

Living paycheck to paycheck isn’t fun and it’s not healthy. Predatory lending and other high-interest, quick-fix, easy-money programs can have terrible consequences for your budget, financial and family health, and career. However, with some thoughtful advance planning, you can set a course for strong financial health.