MyPay
- MyPay is an automated system that puts you in control of your pay account.
- MyPay allows 24/7 access to your account to change or review your current information or to check you recent pay statements.
- Using MyPay you can:
- View pay statements, tax forms, and travel advice
- Print your Leave and Earnings Statement
- Change federal and state tax withholdings
- Update direct deposit data
- Manage allotments
- Buy savings bonds
- Enroll in the Thrift Savings Plan
- Make contribution percentage changes
Leave and Earnings Statement (LES)
- A monthly statement showing all pay changes and information for the month including entitlements (pay and allowances), deductions and allotments, and pay-related remarks.
- Sections of an LES include:
- Personal Information
- Entitlements
- Deductions
- Allotments
- Summary
- Leave Summary
- Tax Summary
- Pay Data Summary
- Thrift Savings Plan Summary
- Remarks
Direct Deposit System (DDS)
- All members of the Navy are required to participate in DDS.
- Failure to establish and maintain a DDS account may be grounds for administrative and/or disciplinary action.
- You are highly encouraged to open an account with a local bank before leaving for reporting to Recruit Training Command (RTC)
- A completed 1199A Direct Deposit Sign-up Form should be brought with you to RTC
- If you do not have a bank account on arrival at RTC you will be able to open one once you arrive.
Goal Setting
- Setting goals and writing them down can help you manage your money easier.
- When making goals they should be SMART goals:
- Specific
- Measurable
- Action-oriented
- Realistic
- Timely (start and stop dates)
- Goal-Getter Fund
- For short term goals
- a goal is short term if it will be realized in 5 years or less.
- Money in this fund should be easily accessible in liquid accounts such as savings of short-term CDs (Certificate of Deposit)
The Financial Planning Pyramid
- Management Level
- Includes the most basic elements of planning:
- Adequate income - Using all pay, allowances, and benefits
- Controlled Spending - Using a written plan
- Adequate Insurance - Protection against financial loss
- Savings Level
- Reserve Fund - Used for non-monthly expenses
- Emergency Fund - Used for unexpected life events
- Investing Level
- Used for long term financial goals
- Never invest money you may need in short-term
Budget or Savings Plan
- The best way to gain financial success is to have a solid, well thought out and flexible plan.
- Be realistic - budget as realistically as possible for expenses you will have
- Plan for the unexpected - unexpected life events can throw your financial plan into a tailspin, minimize the effect by budgeting for non-monthly expenses and setting aside extra money when possible
- Savings - Contribute regularly to a savings account, bank allotments can help with this
- Develop your spending plan - a written method to achieve your financial goals by measuring and managing the money that comes in and goes out of your pocket
- A solid spending plan is:
- Easy to understand
- Should be no more complex than necessary
- Reflects your needs, wants, values and goals
- Should reflect the way you actually spend your money
- is based on current income and expenses
- needs to be practical and realistic
- must be flexible
- Must provide for pleasures as well as necessities
- Maintains good credit history
- Is efficient
- Reduces financial stress and arguments
Maintaining Good Credit
- Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date.
- It is important to maintain good credit so that you can make 'big ticket' purchases in the future, such as buying a car or a house.
- You can build and maintain good credit by:
- paying your bills on time
- keeping a steady source of income
- remaining at one address for an extended period
- if you have a credit card: use it regularly, do not exceed you credit cards' limit, and make steady, on time payments towards paying it back
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