10 Smart Money Moves Every Police Officer Should Consider in Year One
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KEY POINTS: The big picture in seconds
🔑 Learn how to avoid common financial mistakes new officers make.
🔑 Discover 10 actionable money moves to set up your financial future early.
🔑 Understand how to balance savings, retirement, spending, and debt.
🔔 Stick around until the end to find out the one financial move that most rookies overlook—but could set you up for life.
Key Points are powered by ChatGPT and based solely on the content from this article. Findings are reviewed and published according to our editorial policy.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a certified financial advisor for personalized guidance.
Introduction
Congratulations—you’ve made it through the police academy and officially joined the ranks of your agency. Getting paid a great salary with just as good benefits may be as new to you as writing a citation was in field training. That's OK, it's like that for many new law enforcers, especially when the minimum age requirement around the country is between 18-21.
Getting paid for your service and sacrifice is important—and how you manage it from the start matters more than you think.
Unfortunately, many officers don’t receive financial education during their recruit training. As a result, they miss out on critical opportunities to build wealth, avoid debt, and prepare for the future.
PRO TIP: Rookies love case law but you should also consider reading smart finance literature because the arrests that you make are not going to pay you dividends. Check out >> How to build wealth in your 20s and 30s for dummies. >>
Whether you're 21 or 41, your first year on the job is your financial foundation. Here's how to lay the bricks the smart way.
RELATED ARTICLE: Your plastic and badge should fit snug inside of your wallet. Be sure to check out my article >> These Police Badge Wallets are the Perfect Fit [Ultimate Guide] >>
1. Create a Realistic Monthly Budget
Before your first direct deposit hits, know exactly where your money is going. Start with essentials like housing, transportation, insurance, entertainment and groceries, then add savings, retirement contributions, and discretionary spending.
PRO TIP: Your agency will pay you but they won't teach you how to take full advantage of direct deposit. Check out >> How to budget and manage your money by Rachel Mercer
2. Set Up an Emergency Fund
Every officer knows the importance of backup. The same goes for your bank account. An emergency fund gives you peace of mind in case of car repairs, injuries, or unexpected expenses.
A great place to start is with the Acorns App which will give you some beginner exposure to the stock market through round ups and micro investing.
Start with a goal of $1,000, then work toward saving 3–6 months of living expenses. Keep it in a separate high-yield savings account—away from your checking account temptations.
3. Take Advantage of Department Retirement Plans
Many agencies offer 457(b), 401(k), or more commonly, pension plans. Contribute to them from your very first paycheck. The earlier you start, the more compound interest works in your favor.
If your department matches contributions, contribute enough to get the full match. That’s free money.
4. Avoid Debt Traps and High-Interest Loans
You’re finally making steady money. But that doesn’t mean it’s time for a new truck, designer watch, or big vacation—especially on credit.
Avoid:
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Payday loans
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High-interest credit cards
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Financing gear you don’t need
Build your financial reputation with responsible borrowing, not flashy spending.
5. Use Your Uniform and Equipment Stipends Wisely
If your agency provides a clothing or equipment allowance, use it wisely. Don’t blow it all on flashy accessories or unnecessary duplicates like 5 pairs of pants and 5 uniform shirts. Instead, go with 3 pairs, do your laundry, and know that those night shifts are gonna add a few pounds.
Instead, buy durable, high-quality items and save your receipts for tax purposes (where applicable).
6. Start Building Credit the Right Way
If you don’t have established credit yet, get started with a secured credit card or low-limit card and pay the full balance each month.
Good credit will help you:
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Qualify for better loan rates
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Lower your insurance premiums
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Get approved for future home or car purchases
Avoid maxing out cards or missing payments—those mistakes haunt you for years.
7. Live Below Your Means—Even with Overtime
Law enforcement jobs often come with overtime, side jobs, or detail pay. Don’t treat it as guaranteed income.
Use extra income to:
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Pay down debt
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Boost savings
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Invest for the future
Living off your base salary and saving your OT is one of the fastest paths to wealth.
8. Learn the Basics of Investing
Even if you’re not ready to jump into stocks or real estate, start learning the basics now. Read books like The Only Investment Guide You’ll Ever Need or The Simple Path to Wealth.
Knowing the difference between a Roth IRA and a 457(b) or index fund vs. individual stock will give you confidence and help you grow your money.
9. Set Short-Term and Long-Term Financial Goals
Think ahead: Where do you want to be in 1, 5, and 10 years?
Set goals like:
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Pay off $5,000 in credit card debt
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Save for a down payment on a house
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Fund your kids’ college with a 529 plan
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Retire from the force with a pension AND investments
Take it from me, without goals, your money will disappear into stuff you don’t need.
10. Find a Mentor Who’s Financially Savvy
Every department has “that officer” who seems to always have their act together—paid off home, growing investment account, no money drama.
Ask them for advice. Many financially smart officers are happy to share what they’ve learned.
If no one in your department fits that description, seek out a financial advisor who understands first responders or follow reputable online finance educators.
Bonus Tip: The Most Overlooked Financial Move Rookies Miss
OK, the ah-ha moment is here!
Get life and disability insurance—now.
You’re young, healthy, and invincible, right? That’s the perfect time to lock in low premiums. If you get injured or worse, you’ll protect your family and your financial legacy.
Final Thoughts: Build the Foundation Now
Your first year on the job isn’t just about learning to navigate the streets or write reports—it’s about setting yourself up for a lifetime of financial security. Make smart choices now, and you’ll avoid the stress, burnout, and financial regret that too many officers experience later in their careers.
About the Author
Brian Humenuk isn't just an entrepreneur in eCommerce; he is also an informed leader whose experience provides followers and visitors with a look into current and past police issues making headlines in the United States.
Brian has earned three degrees in Criminal Justice, with the most recent being a Master of Science in Criminal Justice Administration.
Brian extends his training, education, and experience to the officers just now getting into the field so that they may become more informed police officers and stay clear of police misconduct and corruption.
You can find out more about Brian and the COPJOT story on the ABOUT US page.
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COPJOT is supported by its audience. If you purchase through links on this site, I may earn a small affiliate commission. Enough to buy myself a small coffee, and I want to thank you in advance.
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