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5 Tips for Better Money Management for Pilots

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The life of a pilot can be one of high-flying adventures. You get to travel to new places, see the world from up above, and best of all, you get paid to do it. Becoming a pilot comes with years of training and certifications, no matter what type of equipment you fly. Make sure you are protecting all of that hard work by keeping a solid grip on your finances. To help, here are five financial management tips for pilots.

1. Prepare for Unexpected Turbulence
An important first step in managing your finances is to build up an emergency fund. This should contain enough money to cover your expenses for three to six months, in case you are unable to work or have a large unexpected bill. It can also help you get home if you find yourself stranded somewhere on your travels. Set up a new savings account to hold this fund- one that you won't be tempted to raid easily for non-emergency things. You could even have a portion of your pay deposited directly into the account each paycheck to help you save. Having a full emergency fund will give you some peace of mind as well as much more than zero trust that you are prepared for anything.

2. Take Off With General Savings
Once you have an emergency fund in place, you can start saving for general use. This could be a new video game console, a dream vacation, a new car, a new house, or anything else that you want to purchase. Having an emergency fund already in place means that your general savings account won't have to be drained by unexpected expenses. If you work for a commercial airline, your employer may have their own credit union that offers special rates on savings accounts to employees and their families. Start by looking there, and enjoy being on the fast track to hitting your savings goals.

3. Keep Climbing With Investments
Investing your money smartly can help you boost your savings and income. You could start with specialty accounts with low risks such as high-yield savings accounts or CDs. If you feel brave, you could also invest in the stock market or cryptocurrencies. It all depends on how much risk you're willing to take on. Remember that every investment comes with some risk, so do your research to find the best options for you.

4. Cruise Along With a Monthly Budget
No matter what your salary is, planning and sticking to a monthly budget can make all the difference. Start by listing out all of your regular expenses. Things like rent or mortgage, utilities, grocery bills, gas, insurance, and other recurring bills should be listed first. Then, build in some extra money for fun things like going out with friends, new clothes, or other entertainment. Make sure that you aren't spending more than you are earning each month. Do your best to stick to your budget, but don't be afraid to adjust it if your financial situation changes.

5. Plan for Your Final Landing
As great as a career as a pilot can be, it does come with an expiration date. In the US, commercial pilots must retire by age 65. Private pilots and Air Force pilots don't have such an age restriction, but no one can keep flying forever. It would behoove you to start planning for your retirement as early as possible. Not only will this give you more time to save, but it will also let you take advantage of years of compound interest.

Getting a new perspective on your finances as a pilot is very important. Start by developing good savings habits, then take advantage of compound interest to boost your savings and disposable income. Don't forget to plan for your retirement as well. Taking control of your finances can help ensure that you can live comfortably for the rest of your life.

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Tags: fly, management, money