A young active-duty Navy couple I know is in trouble.
Big trouble.
The Davidsons (not their real name) are a typical young Navy family. Jeff, 24, is a hardworking third class petty officer aspiring to move up through the ranks. Sheryl, 22, brings their two children to a babysitter every morning so she can hold down a full-time $8.50 an hour job.
The Davidsons have a car payment and insurance, credit cards and furniture payments, rent, utilities - all sorts of monthly expenses. The problem is that one month last spring they suddenly ran out of money before they ran out of “month.”
Ever since, they have discovered how expensive deficit spending can be when a household budget isn’t properly maintained.
To make ends meet, the Davidsons have been forced to stiff a couple of babysitters, stop making payments on their credit cards. They’ve also had their telephone and power turned off over the months.
They talk about “catching up” with hopeful, well-intentioned gestures - paying a few dollars here, borrowing a few more there. As time passes, the hole they’re in only seems to get deeper.
What’s wrong with the Davidsons?
The same thing that’s wrong with too many Navy couples out there trying to maintain lifestyles beyond their means.
Let’s face it, unless a spouse is bringing in an above-average paycheck, a third class petty officer with a family can’t afford to live in an expensive apartment filled with furnishings bought on credit while driving a car payment around.
Lower-ranking married sailors can’t afford these payments plus daycare, substantial cell phone bills, credit cards and numerous other family luxuries - not to mention common mini-emergencies like car repairs and bank overdraft charges - without a well-executed family budget and a few bucks sitting in the bank.
What about the Navy? Is it fair when its sailors are stretched beyond their means?
Not when you consider the countless letters of indebtedness that commands have to deal with. And the man hours lost due to financial counseling or lecture sessions from Chief Petty Officers. Plus the number of sailors whose performance suffers because they come to work exhausted from moonlighting as gas station attendants and pizza delivery drivers.
When it comes to your paycheck, it’s important to be sharp:
- Watch out for credit card companies for being so eager to extend hefty credit lines to those bringing in a government paycheck, regardless of rank and ability to pay.
- Learn the meaning of the word “restraint” by taking a good, hard look at the interest rates attached to guaranteed credit and the financial disadvantages of having spouses leave the home to work when there are children and expensive daycare fees to consider. Many opportunities exist for spouses to earn a good income right from home.
- Get serious about a family budget and stick to it - no matter what. It’s the only way to achieve financial security for yourself and your family, regardless of paygrade and rank.
