How to Build Positive Financial Habits with Armed Forces Bank

Bad financial habits can catch anyone off guard. Whether it’s overspending on your credit card, neglecting your savings account, or living paycheck to paycheck without a solid financial plan, these behaviors can damage your long-term financial health. Fortunately, with the support of Armed Forces Bank, your military bank, you can break these habits and regain control of your finances. Let’s explore effective ways to develop better financial habits using essential tools like checking accounts, secured credit cards, and savings accounts provided by your military bank.

1. Track Expenses with a Checking Account

One of the first missions in breaking bad financial habits is knowing where your money goes. Many people fall into the ambush of not tracking their spending, leading to their own overspending and financial stress.

A checking account is a strategic tool to help monitor your spending. Armed Forces Bank offers online banking and mobile apps that let you to track every transaction in real time. By regularly reviewing your purchases, you can identify unnecessary expenses and find areas where you can cut back.

EXPERT TIP: Set up account alerts through Armed Forces Bank’s Online Banking to get notified when your balance is low or when large transactions happen. This helps you stay on top of your spending and prevents overdrafts.

2. Combat Credit Card Debt with a Secured Credit Card

If you’re constantly carrying high balances on your credit card, it's time to take action before it becomes a long-term financial battle. One method for improving your credit habits is switching to a secured credit card, which is the best way to build credit.

A secured credit card, like Armed Forces Bank’s Credit Builder Secured Visa® Credit Card,¹ requires an upfront cash deposit, which serves as collateral and sets your credit limit. This tool is ideal for rebuilding credit if you’ve made past mistakes. With a secured credit card, you can practice responsible spending by only charging what you can afford to pay off each month. And better yet, your activity is reported to the credit bureaus, which helps you repair or build credit over time.

EXPERT TIP: Wondering what to buy to build credit? Use your secured credit card for small, manageable charges like groceries or gas. Don’t forget to pay the balance in full each month. This keeps you from accumulating debt and interest charges.

3. Set Up Automatic Transfers to Your Savings Account

Neglecting savings is a common misstep that can leave you unprepared for emergencies or future goals. A smart way to tackle this is by automating your savings.

With a savings account with Armed Forces Bank, you can set up automatic transfers from your checking to your savings account or round up your debit card purchases with Armed Forces Bank’s Saving Cents program.² This ensures that a portion of your income is funneled into savings every time you are paid—without having to think about it. Applying this method helps you build consistent savings habits, which is important for creating a financial safety net.

EXPERT TIP: Start with a small, manageable amount, like 5-10% of your income, and increase it as your financial situation improves. The goal is to make saving a routine, not an afterthought.

4. Make a Budget and Stick to It

Without a solid budget, it’s easy to fall into the trap of overspending more than you earn. Creating a budget is your battle plan for prioritizing financial goals, controlling spending, and identifying areas for improvement.

Begin by listing your monthly income and expenses, including bills, debt payments, and discretionary spending. Use tools like your checking account statement to get a clear view of your spending habits. Once you have the full picture, adjust your budget to make sure that you are living within your means and setting aside money for savings. Armed Forces Bank offers a Home Budget Calculator to help you keep track your expenses.

EXPERT TIP: Conduct a budget review at the end of each month and make necessary adjustments. This will help you stay on course and prevent a fallback into old habits.

5. Create an Emergency Fund to Avoid Credit Card Reliance

Relying on credit cards for unexpected expenses can quickly lead to debt. Instead, focus on building an emergency fund in your savings account. This fund serves as your financial safety net, allowing you to handle unforeseen expenses—like car repairs or medical bills—without depending on credit cards or loans.

Try to save at least three to six months’ worth of living expenses. While this may seem like a big mission, starting small and contributing regularly will help you hit your target. Try Armed Forces Bank’s Emergency Savings Calculator or Compounding Interest Calculator to map out how long it will take you to reach your goal.

EXPERT TIP: Funnel any extra funds, like tax refunds or bonuses, into your emergency fund to give it a strong boost.

6. Eliminate Unnecessary Fees

If you are often hit with overdraft fees or late payment penalties, it’s time to put a stop to those avoidable charges. While small fees may seem minor, but they can add up and gradually drain your checking account.

Armed Forces Bank provides tools to help you dodge fees by setting up account alerts, overdraft protection, and automatic bill payments. Keeping tabs on your balances and scheduling payments can prevent these financial hits.

EXPERT TIP: Many banks offer budgeting tools their online banking platforms to help you manage your account and avoid overdrawing. Check out Armed Forces Bank’s Free Online Calculators page for more helpful financial tools.

Building Strong Financial Habits for Long-Term Success

Breaking bad financial habits takes time, but with the right mindset and tools, you can take command of your finances. Using your military bank checking account to track spending, managing your credit card or secured credit card wisely, and growing your savings account will set you up for long-term financial stability and success.

At Armed Forces Bank, we’re committed to supporting you at every stage. We offer the tools, resources, and guidance you need to build a solid financial future. It’s time to break old habits and take control of your financial well-being!

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*Subject to credit approval. Improved credit score is not guaranteed. Transaction and Penalty fees apply. Credit Builder Savings account required. $5.00 quarterly fee charged to the Credit Builder Savings account if not enrolled in eStatements. Credit score is determined by credit reporting agencies based on multiple factors, but satisfactory performance on a credit card product can improve your credit score. Default on a credit card, including missed or late payments can damage your credit score. Once added, funds cannot be withdrawn from the Credit Builder Savings account and the Credit Builder card without closing the savings account and the credit card.

² Choose from $1 to $5 increment to round up on your debit card purchases from your checking account. Each night all the extra change will automatically transfer from your checking to your savings.