Great financial skills or poor priorities decisions? Can both be mixed?

2015-08-10T15:19:26-04:00

I live on post, the area where I live is for E1-E4 SM. This weekend I was driving around and was kind of shocking seeing the cars that were parked in front of the houses. Jaguars, big nice Trucks, brand new mustangs, turbo charged Subarus, etc. And there was me, driving my 2000 Nissan Maxima in awe.

My wife and me are one of the few couples with no children in the area, we save more than 30% of our income. We've been talking about getting a new car but like 2 years from now. I'm not the kind of person that like to judge others by appearances, and I can't see the inside of their houses so I have to hold my judgement (They can't see my furniture either).

I've seen 2015 Mustangs and Camaros with a baby car seat in the back seat, maybe that means that they wanted the car so bad that it didn't matter that much the practicality of the car. Or maybe his other car is a Dodge Caravan and he had a little trip with the baby. We'll never know.

Have you ever got a Soldier with poor decisions skills or he just had great financial skills?

http://www.duffelblog.com/2012/05/army-pfc-buys-ford-mustang-after-deployment-gets-really-great-deal/

Note: Photo from Google Images

Army Private Gets 'Great Deal' On Ford Mustang

FORT BLISS, TX— Most soldiers draw up lists of what they want to do when they get back from deployment overseas — from biting into a Big Mac to kissing their girl back home. For Private First Class Samuel Ramos, it was his dream to buy a new car. “I’ve never actually owned a car …

Response by SFC Private RallyPoint Member made Aug 10 at 2015 3:22 PM

2015-08-10T15:22:30-04:00

Most of these soldiers have no additional responsibilities...just live within your means. It is something we must ensure our young soldiers learn

Response by SGT Jeremiah B. made Aug 10 at 2015 3:40 PM

2015-08-10T15:40:37-04:00

Most I dealt with just had poor priorities. They had zero expenses so could do whatever they wanted, but weren't exactly planning for the future. I know at least one that regrets burning his college fund on a Mustang, but that's what 20 years of maturing does.

Response by MSgt Curtis Ellis made Aug 10 at 2015 4:08 PM

2015-08-10T16:08:31-04:00

I have to admit, I'm amazed at the financial savvy of some of these younger troops... Definitely more so than when I was at that rank...

Response by SPC Nathan Freeman made Aug 10 at 2015 4:24 PM

2015-08-10T16:24:14-04:00

Keep saving your money. A lot of joes are in debt up to their ears. Cars are not investments. Don't buy them if you don't have to. Build a business (or 2 or 3) with your savings and don't trust the army with your retirement.

Response by CSM Michael J. Uhlig made Aug 10 at 2015 4:33 PM

2015-08-10T16:33:00-04:00

Many of those in our ranks have multiple deployments and what you see is the deployment money, as long as they manage their finances no problem - in those cases, they put their ass on the line so let them spend it the way they want without being judged as irresponsible....rather them spend it on a vehicle than on something illegal or on alcohol.

Now, for the naysayers.....ask any of my Soldiers and you will know that I am a huge proponent of compounding interest and always talk with Soldiers about investing in their future, you cannot get back missed time. And for your investment schedule SGT(P) Private RallyPoint Member, you are doing outstanding with your investment plan! My primary vehicle is a 1989 Jeep Comanche!

Response by SFC Private RallyPoint Member made Aug 10 at 2015 4:41 PM

2015-08-10T16:41:07-04:00

A great deal of responsibility comes with marriage. Even as a single Soldier you got it right it has to be a balance between wanting, needing and ability to afford and item. One thing that my wife which is a Soldier as well says to me is babe let's go and see that shiny stuff that me or you are interested in grab it, look at it and think do you want this or do you need this item. Even if you decide that you needed if is not an emergency wait save money for it and buy it you still so interested in the item. My grandma was a firm believer in savings and she use to say out of that dollar save a quater for a rainy day. You are in the right mindset for holding on having kids right away, saving 30% of your paychecks and living within your means. Me and my way have savings and investment accounts for following the principle of living within our means and is looking great for us as we are getting ready to retire. Can we afford a bigger place, newer cars and fancy trips the answer is yes but why? We are saving for the future so we don't have to be 70yrs of age and still working. We do take vacations and enjoy dinners and like to pamper ourselves but it comes after we save for it, budget and stay within those limits. You are on the right track keep this up and when you get the chance sit down with a financial advisor I know USAA have those handy free of cost or someone in your community that you trust. Once you become that NCO continue to mentor your Soldiers on financial skill in the long run will save relationships, careers and will be a good incentive to not live paycheck to paycheck.

Response by SFC Mark Merino made Aug 10 at 2015 4:56 PM

2015-08-10T16:56:14-04:00

The perfect vehicle for driving in the snow. Stupid financial decisions by our new service members is almost a time honored tradition. I would lasso them immediately when they come in and spend bouque time on financial counseling. Even after putting it in writing, verbal counseling, begging, pleading, etc, they still managed to find ways to fit the stereotype.

Response by SFC Private RallyPoint Member made Aug 10 at 2015 5:23 PM

2015-08-10T17:23:53-04:00

Its all in how your credit looks. Some people have priorities that lie in material things, others prefer to invest. Weve all known that Soldier who went and got ripped off on a car. A good leader would always go with a Soldier when making a large purchase to help ensure he isn't getting screwed.

Response by TSgt Joshua Copeland made Aug 10 at 2015 6:32 PM

2015-08-10T18:32:51-04:00

Can't really say much more than what my fellow leaders have said here. If the member is making their bills, living within their means. I wont judge them. I might counsel them (once) on how to that money might be better (subjective) invested. Like many of the other Senior folks, I am a buy it, pay it off as quickly as possible and drive it till the wheels fall off kind of guy myself.

Response by MAJ Ken Landgren made Aug 10 at 2015 6:49 PM

2015-08-10T18:49:44-04:00

Many people will invest on luxury today than for investment in the future. Instant gratification.

Response by CMSgt Private RallyPoint Member made Aug 10 at 2015 7:46 PM

2015-08-10T19:46:00-04:00

They are either: (a) trustfund babies, (b) independently wealthy, (c) deployment SMEs, and/or (d) in debt up to their eyeballs. Dealer's choice. :)

Response by CAPT Kevin B. made Aug 10 at 2015 7:47 PM

2015-08-10T19:47:14-04:00

The most awkward one was this E-5 Seabee showed up on Adak with a low riding pink Cadillac. It could only go on 10% of the roads. Reminded me of the ride in "Escape from New York". Had bling before there was bling.

Response by SrA Jonathan Carbonaro made Aug 11 at 2015 3:23 PM

2015-08-11T15:23:13-04:00

I was overseas for 3 years, 2 years in England and 1 year in Korea. I had one back base deployment while I was in England. If I was going somewhere I either hitched a ride, or I walked. I saved up 20K and bought a 2014 Nissan Frontier in cash, and I'll drive for another 5-8 years before I can see an upgrade to a different car/truck happening.
The First words I heard at my new base was "Typical Airman, buying Brand New Cars" What they didn't know was what I sacrificed to be able to afford the brand new car.

Response by SGT Lawrence Corser made Aug 12 at 2015 8:57 AM

2015-08-12T08:57:27-04:00

A lot of dummies get back from deployment and just buy awesome rides, after like a year a ton of them are either given back or repoed and dudes are getting counseled for bad financial planning/management.

Response by MAJ Ken Landgren made Aug 14 at 2015 12:02 PM

2015-08-14T12:02:22-04:00

I worked with a 1SG with one more year to hit 20 in 2000. He had a nice nest egg saved up like $250,000 because he started saving as a private. His portfolio would be like $400,000 today.

Response by SGT Dave Tracy made Oct 21 at 2015 9:52 AM

2015-10-21T09:52:35-04:00

Definitely sounds like you are financially wise...and disciplined. You sound like a good example for others.

Some people make bad money choices; that’s just how it is. From my experience, the Chain-of-Command tries to help soldiers make better choices, but they can only do so much and they themselves may not be a great source of financial knowledge. I know when I was at my last (Active Duty) unit, the Chain-of-Command mostly had to sign off on all big ticket purchases-or they tried to at any rate. I think it may have helped some people, I don’t know. It mattered little to me as I didn’t need a new house or car, but I wouldn’t like having to get financially counseled by my Chain-of-Command; especially since I was older and more financially experienced than most of the Chain, and on top of that I hold a finance degree from an accredited university. If I had to, I still would have have done it though.

I have seen soldiers--even young ones--who save every penny and waste nothing. The flip side is that, like you, I've seen conspicuous spending too; the new trucks, Mustangs, Evos, I even saw a 1LT get into an Aston Martin. That said, I don't have a complete picture of their financial situation to properly make judgements on how wise it is for them to buy such things.

Certainly some make bad or impulse decisions, if that's the case, then that's what they have to live with. Do consider however, since you cited cars as a prime example, that cars have been a mode of freedom of travel and expression for as long as there have been cars; this is especially true here in the US. Some probably view their ride as their outlet of expression...their hobby, and hobbies can be expensive. Still, I do think that one's car and/or hobbies, should fit into a budget that takes NEEDS into account ahead of WANTS.

You can only teach those willing to learn, so if someone is unwilling to learn to make solid financial decisions or do not have the discipline to follow through on those decisions, all you can do is sit back and let them do as they will.

Response by SPC David S. made Oct 21 at 2015 9:55 AM

2015-10-21T09:55:39-04:00

The best vehicle to put your money in is an investment vehicle. Over the long run - so far - stocks have provided the best inflation adjusted returns for period of 15-20 years or more. Buy a used but dependable car and invest - Honda Accord or Toyota Camry.