rugal living is coming back into style, and military families are proving to be the trendsetters.

The latest findings of the First Command Financial Behaviors Index™ reveal military families with household incomes of at least $50,000 are putting more dollars toward savings and reducing debt than other middle-class consumers. During the first quarter of this year military families on average:

• Put 6 percent more per month into  their retirement accounts and short- and long-term savings than other middle-class Americans.
• Dedicated 9 percent more per month to debt reduction payments than the general population.

These impressive results show that military households have responded to the recent economic turmoil by taking control of their personal finances. Their continued focus on fiscal responsibility is a model for the nation at large.

So how strong are your financial habits? Do you make saving money and cutting debt a priority? Or does money slip through your fingers in spite of all your good intentions? First Command Financial Services offers a few helpful tips for managing your money.

Tip #1: Establish specific goals for things you really want. Saving as a matter of principle just doesn’t provide the necessary motivation for most people. You must have definite goals – things you really wish to have.

Tip #2: Set definite deadlines for reaching your goals. Be realistic about how much will be required to reach your goals. How soon will you need it?

Tip #3: Pay yourself first – fundamental to every financial plan. When you make out the checks to pay the bills, don’t put yourself last. You may never get there. Make that first check out to yourself.

Tip #4: Get your money out of sight and out of mind. Automatic savings tools – such as bank drafts and the Thrift Savings Plan – are an excellent means to this end.

Tip #5: Establish specific accounts for each separate goal. If you have two or more basic objectives, establish two or more accounts to achieve them.

Tip #6: Stick with your plan. The best plan in the world is useless if it is not activated or if it is abandoned. If your goals are meaningful to you, you must stick with your original plan.

Tip #7: Hire a financial coach. Military households who have a financial plan through a financial planner put a higher amount, on average, into savings and investment accounts than other military households. Planners serve the role of a coach, encouraging and inspiring their clients to embrace positive financial behaviors and stick with their long-term plans. During the first quarter, military families with a financial plan through a planner devoted on average:

• $2,721 to overall savings compared to $2,256 for those without.
• $1,301 to long-term debt payments compared to $1,113 for those without.

Military families without a financial plan are twice as likely to feel financially stretched than those with a plan. By saving more and cutting debt, people feel less stressed and more optimistic about their financial future.

First Command Financial Services, Inc., parent of First Command Financial Planning, Inc. Investment products and services offered by First Command Financial Planning, Inc. (Member SIPC, FINRA). A financial plan, by itself, cannot assure that retirement or other financial goals will be met.