NAS Oceana’s MILITARY SAVES
2009
Truth or Myth Debts Dangers 70%, 20%, or 10% Sources of Help Kill Debt, Build Wealth
Military SavesMilitary SavesCATEGORIESCATEGORIES
MILITARY SAVESTruth or
MythDebts
Dangers70%, 20%,
or 10%Sources of
HelpKill Debt –
Build Wealth
200
300
400
500
100 100
200
300
400
500
100
200
300
400
500
100
200
300
400
500
100
200
300
400
500
TRUTH OR MYTH $100
$
You should always close credit card accounts you no longer use.
WHAT IS . . . A MYTH?
Save and set aside an emergency fund to cover at least three month’s worth of your
expenses.
WHAT IS . . . The Truth?
TRUTH OR MYTH$200
$
The percentage of stock in your portfolio should equal 100 minus your age.
TRUTH OR MYTH$300
WHAT IS . . . A Myth?
$
TRUTH OR MYTH$400
WHAT IS … a Myth?
Always go with a fixed-rate mortgage – especially when interest rates are rising.
$
Truth or Myth $500
WHAT IS . . . The Truth?
Save 10% of your net income
$
Debt’s Dangers $100
$
Using your credit card to get money at an ATM at a much higher rate than a credit
purchase.
WHAT IS … a Cash Advance?
Debt’s Dangers$200
Having legal responsibility for someone else’s loan if they default on the payment.
WHAT IS . . . Co-sighing for a loan?
$
Debt’s Dangers$300
You are four times more likely to be struck by lightening than to get rich by this
method..
WHAT IS . . . Playing the lottery?
$
Debts Dangers$400
Taking a short term loan at 200% to 700% interest.
WHAT IS . . . A Pay-Day Loan?
$
Debts Dangers$500
Buying furniture and appliances, paying two to five times department store prices at
100% to 300% APR.
WHAT IS . . . Rent to Own?
$
70%, 20%, or 10%$100
$
At a minimum, the % of your monthly net income that should be allocated towards
Savings and Investments.
WHAT IS . . . 10%?
70%, 20% or 10%$200
At a maximum, the % of your monthly net income that should be allocated towards
living expenses.
WHAT IS . . . 70%?
$
70%, 20%, or 10%$300
At a maximum, the % of your net monthly income that should be allocated towards debt
repayment (not including a mortgage payment).
WHAT IS . . . 20%?
$
70%, 20%, or 10%$400
The financial investment entity that has an average return of 10% over any 30 year
period, for the last 100 years.
WHAT ARE . . . Stocks?
$
70%, 20%, or 10%$500
The financial tool used to determine if you are financially overextended with debt. (Hint: If this is more than 20% you are
overextended.)
WHAT IS . . . the Debt to Income Ratio?
$
$
The title of the point of contact in Navy commands who provides service members
with sources of help and budget counseling.
WHAT IS . . . The Command Financial Specialist (CFS)?
SOURCES OF HELP$100
The organization where sailors and military family members can attend financial, parenting and resume writing classes at no cost.
WHAT IS . . . Your Fleet and Family Support Center? (Which offer Skills for Living
programs. Class schedules are found in the SIGNAL newsletter.)
SOURCES OF HELP$200
$
Daily Double:Daily Double:
SOURCES OF HELP$300
The place where sailors and marines can go in an emergency, to get financial grants or
interest free loans.
WHAT IS . . . The Navy - Marine Corp Relief Society?
$
The on-base military resource where sailors can take their money, get free investment
advice and counseling.
WHAT IS . . . A Military Bank, Bank of America or Federal Credit Unions like NFCU,
ABNB?
SOURCES OF HELP$400
$
The place where sailors and marines can go to have a will prepared.
WHAT IS . . . The Naval Legal Services Office?
SOURCES OF HELP$500
$
KILL DEBT-BUILD WEALTH$100
$
The average American is likely to spent 30% more using this method of paying for
insignificant purchases like fast food or soda then when using cash.
WHAT IS . . Using a credit card?
KILL DEBT-BUILD WEALTH $200
A secured loan requires ...
WHAT IS . . . “collateral”? (Savings, or other real property considered
“security”.)$
KILL DEBT-BUILD WEALTH $300
The maximum allowable annual contribution to an individual IRA for a saver under the age
of 50.
WHAT IS . . . $5,000 in 2008, ($6,000 if over 50 years old)?
$
Daily Double:Daily Double:
KILL DEBT-BUILD WEALTH $400
The way to get money, but having to pay taxes and a 10% penalty.
WHAT IS . . . Taking an early withdrawal for an IRA or 401(k)?
$
KILL DEBT-BUILD WEALTH $500
This is an advantage of a mutual fund.
WHAT IS . . . Automatic reinvestment of income, deferred sales charges or
diversification?$