This article first appeared on YNet, You can view the original in Hebrew by clicking here.
It’s no military secret that soldiers’ salaries are tiny. How can a soldier pay the bills without going into debt? Lt. Gal Zerihan, a Service Conditions Officer in the Galilee Division, shares practical advice to help soldiers manage their salary and cover their regular expenses. For young adults, army service marks the transition from depending on their parents to becoming financially independent. Managing your money wisely during this time can help make that transition much smoother.
Pay Up Front
Choose a debit card over a credit card.
Debit cards help you avoid going into overdraft because every purchase is deducted immediately from your bank account instead of being charged once a month. When your account balance reaches zero, the card simply stops working, preventing unnecessary overspending and unexpected charges at the end of the month.
Use Credit Cards Wisely
If you need a credit card, use it responsibly. Credit cards can make it easy to spend more than you intended.
To better manage your finances, ask your bank or credit card company to set your billing date to the first of the month—the same time you receive your army salary. This makes it easier to compare your monthly income with your expenses.
Beware of Fees
Many soldiers mistakenly believe they are exempt from all banking fees.
In reality, you may still be charged fees for:
- Going over your credit limit
- Entering overdraft
- Insufficient funds (for example, a bounced check)
- Various banking service charges
These fees can add up quickly.
To avoid them:
- Don’t authorize payments if you don’t have enough money in your account.
- Avoid keeping multiple credit cards.
- Most importantly, avoid going into overdraft whenever possible.
Shop Wisely
You don’t have to stop buying snacks or small treats during your army service, but it’s worth spending wisely.
Some simple ways to save money include:
- Avoid buying items at gas station convenience stores.
- Shop at the Shiklit (military canteen) whenever possible.
- Choose supermarket store brands, which are often just as good but cost less.
- Compare prices before making regular purchases.
Small savings can make a significant difference over time.
Loans – Use With Caution
Many soldiers use loans as a quick solution for overdraft or large purchases.
Although banks generally offer loans based on your income, remember that every loan includes monthly repayments and interest. Before taking out a loan, think carefully about whether it’s truly necessary.
If you do need financial assistance, speak with your unit’s Service Conditions Officer (Mashakit Tash) about military loans. Military loans are generally preferable because repayments are deducted directly from your monthly salary and do not include interest.
An Expensive Habit
Smoking can become a significant monthly expense.
A large portion of the cost of cigarettes comes from taxes, which are intended to offset the public healthcare costs associated with smoking. Reducing or quitting smoking can have a meaningful impact on your monthly budget.
Keep Track of Your Expenses
One of the best financial habits you can develop is keeping track of your spending.
You can do this by:
- Reviewing your bank statements regularly
- Monitoring your account through your bank’s website or mobile app
- Asking your Mashakit Tash for financial guidance if needed
Understanding where your money goes each month is the first step toward managing it successfully.