We were all relieved that the Government avoided a shutdown this week and that our paychecks will be normal on Friday. Many military families felt panic that should be considered a financial warning signal. If you were afraid you weren’t going to be able to feed your family or make the rent because your paycheck was restricted this month, that’s a good indication that your emergency fund it too small.
I’ve previously written about the “8% Challenge” which recommends that your save 8% of your pay for a year in a cash account to build up your emergency fund. In a year you’ll have a month’s pay saved. In three years you’ll have a three month cushion.
Let this experience guide you, and on Friday, put 8% of your military pay in your savings account.
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