How much can someone coming in as an E-1 save in a 4 year enlistment?

When I did it, I didn’t save hardly a dime...I have learned a lot since then and my son now is maxing his savings everyplace he can. In his initial enlistment he is going to have saved over $10k without sacrificing anything. Just focused and watched his budget. He has also been able to take advantage of the stock market adding to his overal net worth. At 22 y.o. He has developed the habit of saving and maxing his retirement investments...the discipline itself it worth way more than the actual dollars and cents currently saved because it will be a habit he retains for a lifetime. I hope you and others can make that happen for you and your families too!

Honestly, that all depends on the individual. What you save in 4 years is what you save in 4 years.

Jordan Dang No one can tell you how much you will save because there are two many variables. I saved because I was disciplined and had always saved. It helped that I served in places where I could not spend money, drew combat pay, etc. Do your research about investing so you make the best choices possible. Be familiar with your savings plan/retirement plan choices. Studying personal finance is a lifelong task and the more that you study the better investor you will become. Save, invest wisely, spend wisely. Good luck.

https://www.investor.gov/

The military, especially for Jr enlisted are like parents. The military pays them, feeds them, houses them, and keeps on top of their physical well being. Every penny they get from the military is expendable income (especially for singles).

In the equations for "Time Value of Money", TIME is the most powerful variable in savings. Sooner is better than later, and more is better than less.

When I enlisted at 39 I walked away from a 20 year financial career and have an MBA/CFA. I was saving since day one out of college. So at 39 I stopped saving and entered the USAR. Since I was saving all that time while I was young I basically locked in my retirement nest egg before I was 40.

Actually. I locked in my retirement nest egg when I was 30 (but I stopped saving at 39). If someone starts saving as much as they can from ages 20-30 and then entirely stop saving from age 31-60 they will still have 90% of the portfolio the person that continued to save until the day they retired. So yes, the first 10 years of savings is 9 times as much as the next 11-30 years of savings.

A dollar saved by a 20 year old today grows to the power of 40 (retirement age 60). $1(1+rate)^40, the next year when age 21 the dollar they save will grow to the power of 39. $1(1+rate)^39, at age 22 it will be the power of 38 as so forth.

So for those that decide to save later they lose the opportunity to get compounding years of 40,39,38,37,36,35, etc............ The years to "catch up" quickly pass and the amount needed to stash away to catch up to missing the early years quickly becomes insurmountable.

A young person that can save $100 a month can still get to $1,000,000 at retirement. But they have to do it in their teens.

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I get it, I didn't disclose the finer details to my assumptions in my calculations. I feel in the context of this conversation such detail is lost in the larger message SOONER IS BETTER THAN LATER, and cannot be emphasized enough.

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My young toddlers are so lucky to have me. We as parents have been stashing away savings each year for them and well, their investment HORIZON is SIXTY YEARS. I hope they don't blow it on stupid stuff.

I met a guy that retired while I was still in. He was advanced (promoted) from E-1 to E-4 - and then banked EVERYTHING thereafter. Just as an example, his E-4 pay was $600/month: Every year when we got a pay raise, he'd bank everything over that $600. When he was advanced to E-5, he banked everything over that $600. He and his (working) wife raised two kids on $600/month, and when he retired after about 6-years as an E-7, he had MAJOR money in his private 401k and Roth IRAs.

Personally, I couldn't do it - but it's an option.

Theoretically you can save almost every penny. You get a room, your food is covered, you have a gym, medical, dental etc. all you will have to spend is on hair cuts and toiletries. Take 50 to a hundred for your hair and toiletries, multiple the remaking, after tax by 12x4 and you have it.

Is this realistic not necessarily. I can say that I have known if a few Sokdiers who did it and were successful.

If you don't blow your pay on strippers and shiny toys, you should be able to save 80%, or better, of your pay. your monthly expenses could be virtually zero if your goal is to save money. eat in the chow hall every meal, living in the barracks. your only bills should be a cell phone bill and car payment/insurance.

One of the thing that did actually save money for My future use was the US savings bonds, they helped a lot in later life when I needed it. Like a lot of young guys a lot of money got wasted but that acquired value and never got touched until it was actually needed. I did save a lot of money when I was serving in Vietnam and sent it home to to My parents to be put in My bank account there especially as there wasn't much to spend it on there.

Jordan, I was able to save $3,500 while in Vietnam ($23,000 today’s value) because I did not smoke, drink, or do drugs. But I did visit some of the girls off-base. Also, I did not have any debts at home, such as a car loan, child support, or supporting a girlfriend. My income was solely from my tax-free pay and combat pay (Hazardous Duty Pay) of $55 a month. Because I delayed my “gratification” until I left (ETS) the Army in January 1969, I was able to buy a used 1967 Mustang, paid in full, with money left over to pay my room rent while attending the University of Washington. The VA was paying for my tuition and books/supplies. Save your money – it will be worth it after you get out.

Jordan Dang You have received some excellent financial information and strategies, Turning that information into action will be on you. My recommendation is that you clearly identify your NEEDS versus WANTS. Set aside in whatever investment pool a percentage of your income that leaves you enough to meet your needs, and build an accessible pool for your wants. If possible, do NOT get a credit card - too easy to get overboard with spending. Just my .02 and I didn't do any of the above when I was an E-1.