What are some good financial tips for a young enlisted US Army soldier?

2018-03-07T12:07:34-05:00

Response by SGT Eric Davis made Mar 7 at 2018 12:18 PM

2018-03-07T12:18:14-05:00

Get your bonus and dont spend it. Put half on a CD or IRA with high interest rate for at least a year! Eat at the chow hall and don’t go out to eat everyday. Don’t buy a car cause you will be staying on base but if you have a car already you are good. Don’t go buying things you don’t need! Also attend any training they wanna send you too!

Response by SPC Joseph Wojcik made Mar 7 at 2018 12:21 PM

2018-03-07T12:21:24-05:00

Minimize unnecessary expenses. Instead of ordering delivery, eat at the DEFAC during the work week and buy groceries at the commissary if your barracks has individual or communal kitchens.
Don't take out payday loans or get an AAFES credit card, and if you can live without a car for a couple of years do so.

Response by Sgt Private RallyPoint Member made Mar 7 at 2018 12:22 PM

2018-03-07T12:22:59-05:00

PV2 J M Save and invest a portion of your income. Live beneath your means so you have money to save and invest. Utilize available military savings plans to grow money tax deferred. Own a minimum amount of credit cards and pay them off so you are not paying high interest rates. Be frugal: use coupons, when going out to eat, eat at lunch when it is cheaper, drink water and do not order appetizer or desert. Research purchases so you know if you are getting a fair deal. Ask for discounts when applicable. Budget your money. Track your income each month versus expenditures to see exactly where your money is going. Keep track of your net worth so you can see if your are making progress toward your long term goals. There arte many websites to help you learn to be a smart saver and investor. Managing your money is a skill that can be learned like any other skill.

https://www.investor.gov/

Investor.gov

The SEC’s Investor.gov: Tools to check your investment professional, compound interest calculators, and other objective resources for the average investor.

Response by SSG Private RallyPoint Member made Mar 7 at 2018 12:29 PM

2018-03-07T12:29:17-05:00

Don't get married to any of the first 5 or 10 women you meet. Don't go buy a car with a huge interest rate. Stay out of bars and strip clubs.

Response by Lt Col Jim Coe made Mar 7 at 2018 12:31 PM

2018-03-07T12:31:24-05:00

-Save some money out of each paycheck to cover unexpected expenses or planned "wants".
-Use credit very carefully. If possible, get along without a credit card or no more than one credit card.
-Contribute to your TSP (military version of 401(k)) at least 1% of your income before taxes and move up to 10% as soon as you can.
-Beer is not a grocery item.
-If you're single and living in the Dorm (barracks), eat in the dining facility for nearly all of your meals.
-DO NOT get married if moving out of the barracks is a factor in your decision to do so.
-All cars cost more than the advertised price (tag, tax, maintenance, gas, tickets, etc.).
-Nothing good or inexpensive happens downtown after midnight.

Response by MAJ Private RallyPoint Member made Mar 7 at 2018 12:31 PM

2018-03-07T12:31:37-05:00

Put your TSP contribution at 5% ASAP, buy things with your savings account not with credit. That means buy a cheap, reliable car rather than the corvette you really, really want.
Individual financial restraint is the only criteria for success. Since you're asking this question you're already on the right road. Congrats and do great things with your life and career.

Response by SGT Philip Roncari made Mar 7 at 2018 12:39 PM

2018-03-07T12:39:35-05:00

Listen to all this excellent advice from previous comments,mine will be more basic try to stay out of the bars and strip joints.

Response by SFC Robert Walton made Mar 7 at 2018 12:40 PM

2018-03-07T12:40:27-05:00

Plan ahead keep in your mind need not want need. Put money in the bank in savings or invest some. Make sure you place need before toys. If you invest still keep a few Hundred in the bank for emergencies. Plenty of time for play later learn to be a good and Thrifty Soldier first.

Response by LCpl Shane Couch made Mar 7 at 2018 12:42 PM

2018-03-07T12:42:50-05:00

Make sure you use all available resources. Don't buy fast food or order pizza, use the chow hall. Try and avoid buying unnecessary items such as gaming consoles (someone in the barracks is bound to have one of each). Stay out of strip clubs, need I explain why? Try to limit going to concerts. Try to limit going to the movies off post, most likely there will be a movie theater on your post and it is much cheaper even though the movie choices aren't always the best (at least they weren't when I was in). Don't take your camo utilities/ BDU's (whatever the Army calls them these days) to the cleaners, wash, starch, iron them yourself. If you can, do the same with your service and dress uniforms, just don't burn them when ironing. Stay away from credit cards. I didn't get a credit card until recently and I have made due just fine.

If you already own items such as a TV, car, computer, etc., then you could bring them if you are in a barracks. I'm not sure it would be a good idea if you are in squad bay living. Except your car, if you already own one. If your post is fairly close to home, try not to travel home every weekend. If you must, try to go home once a month.

If you are able to put a minimum of 20% of your earnings into savings and never touch it you will be doing better than most young service members. Good luck.

Response by Patricia Overmeyer made Mar 7 at 2018 12:46 PM

2018-03-07T12:46:35-05:00

If you do get married, make sure you get a prenup prior to the marriage to protect your military retirement, alimony, etc. Go to a good attorney who understands military issues in family law for that. It's well worth the investment upfront rather than the thousands down the road when it all goes south. If she isn't willing to agree to a prenup, then walk away and stay single.
Don't think you need a prenup because you don't have any assets, you are in love and she's never going to take you for everything, yada, yada, yada? You should hear my military clients who are getting divorced. A prenup would have been a wise choice. Ah well, you can lead a horse to water but you can't make him think.

Response by Sgt Aaron Kennedy, MS made Mar 7 at 2018 12:47 PM

2018-03-07T12:47:58-05:00

1) Max your TSP contribution. Keep in mind that government matches a % (this is free money just for saving)
2) Eat at the chowhall. $10 saved is $10 earned
3) Don't get a credit card just because you can. It's an anchor you won't be able to get rid of.
4) Watch your credit score.
5) Watch your credit score. Yes, I said that twice
6) Look at secondary retirement options like IRAs and Roth IRAs.
7) Invest in yourself. Not in your "stuff." Stuffs value depreciates over time. Learning generally appreciates.
8) If you don't need a car, don't get a car. It's not just the Car note, but the insurance, and gas as well
9) Take advantage of the base resources. Theater, Pool, Bowling Alley, Education office. Anything you can do on base, do it.
10) Find things that keep you from spending money

Response by LCDR Private RallyPoint Member made Mar 7 at 2018 12:48 PM

2018-03-07T12:48:02-05:00

Mr. Masters-Three things will leave you in financial distress: Not budgeting, acquiring "bad" debt, not maintaining savings. You won't make a great deal starting out, and unless you have a family, your needs should be minimal as well. Don't fall into the temptation of managing your bank account "by memory", or worse still...by ATM receipt. Know how much you earn (exactly, to include with-holdings), how much is in your account, and how much you must spend for essentials. Keep this in some form of record. I recommend a spreadsheet. Take advantage of what is offered you; stay in barracks, eat the food the Army serves, ride don't drive. As TIME passes, and you master the art of economic survival, you can make educated decisions in regards to housing, a personal vehicle, etc. Never get yourself into a situation where it takes every cent you earn (net) to get through a month. When you go into town for fun, never take a credit card or debit card (well, I can think of a few times you might for safety's sake...but in general); take exactly the amount of cash you can afford to spend and still stay on budget. Put half of it somewhere no one's going to look. Beware getting involved too deeply, and too soon with a significant other. You're about to enjoy some of the best years of your life...don't be impatient. As a young man, I spent more money than I'd care to know buying drinks for a girl and everyone at the bar, only to have her walk out at the end of the night leaving me with nothing but the tab. Don't mistake a room-mate for a girlfriend, and vice versa. If at some point in your early career, you opt to live off-base (usually a bad decision), group up with guys from your unit...don't "set up house" with the girl you met last month. You do NOT need to become a father, or sign up to act as someone's father yet. Avoid borrowing. Stay away from "loan sharks", to include "payday loans"-They are all going to "win" in the end. If you want to build credit, get a card with a very low limit, and pay off your balance religiously every month. It will be very hard, nearing impossible starting out, but set a goal of having at least $1,000 in total savings at all times, set aside for emergencies. It seems impossible, but it isn't if you plan ahead, stay disciplined, and maintain a long-range perspective.

Response by SPC David Willis made Mar 7 at 2018 12:51 PM

2018-03-07T12:51:04-05:00

Never been a better time to invest in marijuana. Been a couple years since legalization was granted in a couple states, and Trumps DOJ has said they would crack down on it. Prices are low but I'd imagine legislation to make it legal is coming, especially if we actually get into a trade war!

Response by SGT Private RallyPoint Member made Mar 7 at 2018 12:58 PM

2018-03-07T12:58:20-05:00

SAVE! And start using the TSP right away, especially if you’re in the new retirement plan and can get the match.

Response by Sgt William Pilgrim Jr. made Mar 7 at 2018 1:04 PM

2018-03-07T13:04:29-05:00

Start saving and putting away money in a saving account.. Start with $50 Dollars a payday and when you make rank , put that money into and don't spend it . Make sure you keep your money in and don't spend it and maybe by the time you retire from the service you'll have a good chunk of change and invest it into a roll over account and save that or stay with your original saving account.. Save as much as you can until your ready for retirement at what ever age you do retire at..

Response by PO1 Private RallyPoint Member made Mar 7 at 2018 1:27 PM

2018-03-07T13:27:37-05:00

Make sure that you select the ROTH TSP versus the traditional TSP. The difference is that with Roth you pay taxes up front on your contributions meaning that all future earnings and withdrawals will not be taxed. Whereas with the traditional TSP you do not pay taxes on the contributions but any earnings or withdrawals you will pay taxes on (at the date of receipt). As the Cost of Living and tax trend continues to increase generation to generation (think how much a dollar could get in 1930 versus today) this could be a concern for future investments. If you have the traditional TSP you can contact TSP and request to roll your current amounts into a ROTH account and will be required to pay current taxes on the amount transferred. Using the TSP can provide long term benefits (outside of retirement) such as taking out a low interest loan against your contributions (see https://www.tsp.gov/PlanParticipation/LoansAndWithdrawals/index.html).

See these links for additional information of Roth TSP vs. Traditional TSP:
https://www.futureadvisor.com/content/blog/traditional-vs-roth-thrift-savings-plan-tsp-contributions
https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/TaxTreatment/index.html
https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/TaxTreatment/comparisonMatrix.html

TSP: Page Not Found (Error 404)

The URL may be obsolete, or it may have been mistyped. You can re-enter the page URL or use one of the frequently accessed TSP menu links below.

Response by SFC Private RallyPoint Member made Mar 7 at 2018 1:29 PM

2018-03-07T13:29:14-05:00

If you don't have a long credit history because of age, you can always get an AAFES star card and pay on time to build your credit. If you plan on making the military a career, you can enroll in the Thrift Savings Plan (TSP).

Response by SFC Private RallyPoint Member made Mar 7 at 2018 1:36 PM

2018-03-07T13:36:43-05:00

Stay in your barracks and play video games all the while saving most of your money, haha. Eat only Ramon noodles. This will also help you stay out of trouble.

Response by Capt Private RallyPoint Member made Mar 7 at 2018 1:42 PM

2018-03-07T13:42:31-05:00

Spend less save more.

Learn the difference between want and need.

Response by LTC Private RallyPoint Member made Mar 7 at 2018 1:46 PM

2018-03-07T13:46:31-05:00

Investments have been mentioned: TSP, ROTH IRAs, gold, possibly rental properties as you obtain rank/grade. I recommend getting a credit card like one offered from USAA that gives you points. The program is called the Eagle Points Program. I use my USAA card for every purchase. (American Airlines has a great credit card as well). It gets payed off monthly. At the end of the month I get hundreds or thousands of points. Those points are redeemable at hotels, airlines, cruises, restaurants, etc. I also use every discount I can such as GroupOn. Learn to live by not paying full price. I'm not saying to buy cheap. You buy quality once. And last: in whatever profession you choose if and when you advance and get a raise don't use it. You never had that money so invest it. Being financially secure will give you incredible confidence and conversely having poor financial decisions will utterly wreck havoc on your career and those around you.

Response by Cpl Mark A. Morris made Mar 7 at 2018 2:13 PM

2018-03-07T14:13:25-05:00

Live on ship, or barracks. Save half your paycheck. Do not get married. Take online courses.
I did. But, I went through the Dept of the Navy Regents College.
Get connected here and read how some hard chargers write. You will start to notice how America's 1% is the example to our country and why the American military wins.
Kill!

Response by 1LT Jon Sigafoos made Mar 7 at 2018 2:21 PM

2018-03-07T14:21:29-05:00

Most of these are great answers. You should check out Dave Ramsey Financial Peace University. https://www.daveramsey.com/fpu

It is awesome and has a lot of great ways to stay on top of your finances. Just like anything plan the work and work the plan. Best of Luck!

fpu

Response by SFC Private RallyPoint Member made Mar 7 at 2018 2:22 PM

2018-03-07T14:22:55-05:00

If you don't have anyone to support but yourself: invest 10% of your take home pay with a certified financial planner (CFA). A CPA has a fiducial responsibility to put your wellbeing before his own. For someone your age I would advise a Roth IRA.

Response by SGT Joseph Gunderson made Mar 7 at 2018 2:23 PM

2018-03-07T14:23:55-05:00

1. Don't go blowing your money on a stupid car
2. There is no reason to go get married; you barely know who you are at that age and thus you cannot know the kind of woman that you want to spend your life with.
3. If you are of age to drink, don't go blowing your money on alcohol every weekend because that is stupid and just not worth it. If you aren't of age to drink then don't; plain and simple.
4. You don't always need the newest video game console
5. You don't need to drive a brand new vehicle, that beat of POS that you dealt with all through HS is fine until it breaks down.
6. There is no chick that you should be buying jewelry for until you are married. They aren't worth it.
7. Keep on top of your LES so that you know what is going on there. Ask your NCOs if there is something that you don't understand
8. Stay out of trouble so they don't start grabbing at your pay.
9. Find a good bank to go through. USAA or Navy Federal are the best in my opinion.
10. Open a savings account and deposit a little bit in it every month and just forget about it
11. Set up your TSP or whatever so that you have a retirement account also growing
12. Do not pick up smoking or dipping or whatever; believe me when I say that it is a VERY expensive habit and a waste of money in the long run because you WILL end up quitting when you get older.
13. Use your clothing allowances for CLOTHING. If you do not require new uniforms, then throw that money into your savings account. Eventually, you will need new clothing and uniforms or maybe you just want a new pair of boots and you will want to still have that money.
14. If you received a bonus, DO NOT SPEND IT ALL. Throw 80-100% of it into your savings account and just forget about it. There is no reason EVER to blow all that money. This also applies to receiving re-up bonuses. You did fine without that money so you don't need to go blowing it.
15. Use common sense, kid.

Response by PVT Mark Brown made Mar 7 at 2018 2:24 PM

2018-03-07T14:24:32-05:00

Don't expect to get rich.

Response by LTC Eugene Chu made Mar 7 at 2018 2:52 PM

2018-03-07T14:52:32-05:00

Get a credit card, BUT...

1. Use sparingly and pay off balance each month to avoid interest
2. Find one with rewards program. Spend a little, but pay off balance and can get points.
3. Check statements online regularly to ensure ID is intact
4. Use points from credit card rewards for items or leave
5. Don't use at ATM for cash

Response by SSG Private RallyPoint Member made Mar 7 at 2018 3:18 PM

2018-03-07T15:18:25-05:00

Buy a vehicle of Craigslist that’s under 4K, set up a Roth 401 or 457 and contribute at least 7%. Create a savings account and put in $100 each pay period. So $200 a month. Don’t get Married at least after your first deployment or when up for reenlistment. Credit cards are a no-go.

Response by Maj John Bell made Mar 7 at 2018 3:31 PM

2018-03-07T15:31:37-05:00

_Your budget for necessities and "fun" is ___% less than your take home. I suggest 15%.

_Until you are debt free, that __% (over and above minimum payments) goes to debt reduction. Kill the highest interest rate debt first.

_ Once you are debt free, that __% goes to immediately available savings. That savings is only to be touched for emergencies, until you have three months take home pay saved up.

_Next, set up an investment portfolio. Set up an allotment so that 2/3rds of that __% goes to your retirement. 1/3rd goes to "Savings for big things I want in the future."

_Never finance a luxury/nice to have item. If you don't have the cash, you haven't earned it.

_Don't turn up you nose at buying used stuff. You can furnish a starter home from garage sales, thrift stores, and craigslist for 20% of what it would cost you new from a retail store.

Response by SSG(P) Private RallyPoint Member made Mar 7 at 2018 3:44 PM

2018-03-07T15:44:55-05:00

If your bills are $1200 a month, you should save a 6 month surplus or $7200 in case of emergencies, government shutdowns, etc.

Response by MSG Danny Mathers made Mar 7 at 2018 4:34 PM

2018-03-07T16:34:47-05:00

No tabacco use. You can buy a cheap car for the cost of smokes and chew. Save a little money every payday. Little money add up to bigger money in time. Wait until you can afford toys.

Response by SGT Dave Tracy made Mar 7 at 2018 4:39 PM

2018-03-07T16:39:45-05:00

Avoid the pretty girls at the local malls trying to sell you electronics (at 20%+ interest!).

Response by Sgt Wayne Wood made Mar 7 at 2018 4:50 PM

2018-03-07T16:50:27-05:00

Open a bank account that requires TWO signatures for check or withdrawals an a pre-paid debit/credit card with a fixed limit.

Direct deposit & learn to live with the self-imposed limits.

Act like an adult.

Response by MSgt Private RallyPoint Member made Mar 7 at 2018 7:38 PM

2018-03-07T19:38:04-05:00

Don’t get married and start mKing babies while you are still an E1

Response by 1SG Private RallyPoint Member made Mar 7 at 2018 10:30 PM

2018-03-07T22:30:54-05:00

Set up some sort of deposit into a savings account that you will forget about.

You will have a home and food provided. You can easily learn to deal with a reduced paycheck, knowing that sometime in the future you will have a good nest egg put away.

Make sure you take advantage of retirement savings as well.

think twice about

Response by SSG Private RallyPoint Member made Mar 8 at 2018 12:55 AM

2018-03-08T00:55:59-05:00

I like the answers the first couple of people said especially SGT Aaron Kennedy. I constantly preach to the new Soldiers daily to start a TSP and save while you are still young. You can save $500.00 a month, which is $250.00 on 1st & 15th that you will not miss. The average young Soldier these days can blow 500 or more on any given weekend at the bar, club, strip joint or PX....... Something else to look at and consider is Roth IRA and stocks........... I remember someone was talking to me about investing in the bitcoin stock 7 to 8 years ago when it first came out. I looked it up and saw it was 5 cents a share. I didn't know anything about this bitcoin or crypto currency as we know today. If I would have listened to the person and just invested $50.00, I would be a millionaire today. If I were you, I would listen to some of the things these guys are saying.

Response by 1stSgt Mack Housman made Mar 8 at 2018 12:38 PM

2018-03-08T12:38:55-05:00

1. Stay as far away from credit cards as possible. They are an anchor that nearly impossible to unshackle and it's a constant drain!
2. Use the education benefit that the military provides. You won't always be in uniform and it opens tons of doors, many of which will provide with promotion opportunities and higher salaries!
3. Save money. TSP, IRA, Savings account. You will need some that is easily accessible (this will keep you from the desire to use a credit card wastefully), but you need some that you can't put your hands on if you have a tendency to binge.
4. Although we have all complained about the Chow Hall (DFAC), it is a huge money saver.
5. MWR has a lot of money saving recreational offers.
YOU'RE WAY AHEAD OF THE GAME BY ASKING THESE QUESTIONS NOW. Best of Luck!!!

Response by CMDCM Maurice Conner made Mar 10 at 2018 10:39 PM

2018-03-10T22:39:38-05:00

Pay yourself FIRST...every payday put 10% of your check into an account that you can't readily get to. As this payday savings account grows look for high yield long term CD's to build towards your retirement or muster out date. If you have access to TSP put an amount equal to at least the gov't matching amount...double it if you can.

Response by SGT Aric Lier made Mar 11 at 2018 11:07 AM

2018-03-11T11:07:06-04:00

25 years ago I was stationed with a guy that only kept $25 of every check, he invested the rest. today he is a millionaire and im still working....but hey I have great bar stories

Response by SGT Aric Lier made Mar 11 at 2018 11:31 AM

2018-03-11T11:31:21-04:00

I see a lot of responses downing credit cards, and I have to say while some people are idiots CC are the best tool for building credit when used properly. I know a guy that has over 100 cards.what does that mean, well that bank financed car at 29.99% he puts it on a 6% card. be responsible with it and they are fine. never use them for intangibles ie food gas etc you will be paying interest on something you no longer have. have a car payment due? pay with CC and then immediately send said payment to card holder. and keep your balance under 30% of your limit
never accept a card that charges a fees. and if bad credit or starting out goto your bank and apply for a secured card with 500 cash

Response by Lt Col Dana Morrill made Mar 12 at 2018 2:17 PM

2018-03-12T14:17:04-04:00

Deal in cash. You do not need a credit card until you know how to manage you money. There are money management courses that are offered, go, learn and apply it. Stay out of dives. Just deal with needs not wants, if you don't know the difference talk to your first sergeant, they will instruct you on the difference.

Response by PO1 Mike Dean made Mar 20 at 2018 6:39 PM

2018-03-20T18:39:11-04:00

Lots of good advice here from about everyone. But I'd add that if you are married or become married, marry a woman with a job and good work ethic who can help with expenses and don't start a family until you make at least E-4.

Response by SSG Brian G. made Mar 28 at 2018 11:13 AM

2018-03-28T11:13:48-04:00

Unless you just need to get out of the barracks, don't. Stay in there. It's free all the way around.
Eat at the chow hall. The expense of buying food or eating out adds up quickly and why waste the $100 bucks a week.
Invest in yourself. Education.
Maximize your TSP contributions, it really adds up over time.
If you find you need a car, look to the post/bases "lemon lot" as these are vehicles that are being sold by members that have PCSed and could not take it with them. If you need to buy a car, DO NOT buy local around your duty station as they are higher in price and interest rate. Do NOT mention that you are in the military as that just brings out the vultures.
Avoid that first credit card for as long as possible. DO NOT get the STAR card that exchanges offer you get better rates in banks and credits unions and if you get in a pinch, they are more lenient than STAR. Use cash to pay for what you want. If you cannot pay for it all at once, save it up then get it.

Response by LTC Robert Pennington made Mar 31 at 2018 1:20 PM

2018-03-31T13:20:20-04:00

It's simple - live within your means. Just because you're now "employed" you don't need that fancy new car, or video game, or to constantly "treat" your comrades to a round on you.

Response by CMSgt Steve Pennington made Mar 31 at 2018 6:41 PM

2018-03-31T18:41:11-04:00

Don't go into credit card debt! Don't impulse buy. Get into the habit of saving a litle each month, the amount isn't as important as the routine. When I left for basic in 1969 my dad gave me a piece of advice to always have at least $20 in my wallet the day before payday. Big bucks for an E-1 in those days, but I was never flat broke.

Response by SSG Private RallyPoint Member made Apr 4 at 2018 3:55 PM

2018-04-04T15:55:08-04:00

One tip is to always pay yourself first. Being a young soldier new to the military , it is imperative that you pay yourself. You do all the work to turn around and pay other people or agencies what you have worked hard for. As previously suggested:
1. max out your TSP contributions (as much as you can reasonably afford to.
2. start an allotment for the 100 dollars that you don't get anyway for your college fund and continue to sock it away. I am old school hopefully that hasn't changed.
3 Do Not over spend. Live within your means or less. Having all the new hotness gadgets that are out there will make you feel good now but your wallet and bank account will feel the pain.

First and foremost, sit down and make out a realistic budget. how much do you (Net) every month, that is after taxes and other deductions are made. Then calculate how much of your money is going out, cell phone, internet, etc. Once you figure out what you have left over then you can see what you will have to save and/or invest for your future.

Response by SGM Bill Frazer made Apr 5 at 2018 9:17 PM

2018-04-05T21:17:19-04:00

Watch your credit- save your money, stay away from credit cards and places near the Post.

Response by SSG Ray Elliott made Apr 7 at 2018 11:26 AM

2018-04-07T11:26:18-04:00

Pay yourself first, have a set amount of your pay go directly into some sort of savings account. 10% is a good amount to set aside and be consistent do it every payday. If you can put away more for a rainy day by all means do. Don't get into debt. It's OK to have a credit card, but don't carry a balance pay it off every month (find one that gives you cash back on your purchases). The only thing worth paying interest on is a house, save and pay cash for everything else. Buy used cars and let someone else take the initial bite on new ones. Lease returns and program cars are good deals and still have some manufacturers warranty left. Don't pay for extended warranties on appliances, cars, etc. The chances of you needing them before the run out are slim, and they will normally cost you more in the long run than the repair you may need.

Response by Sgt Jon Mcvay made Apr 10 at 2018 7:20 AM

2018-04-10T07:20:06-04:00

Take it slow. Watch your finances and keep your uniforms up to inspection first. Make no what seem to be rational moves for the first year. Like buying a car/motorcycle. Write to home as much as you can. Remember these people you meet are acquaintances like people at work in the civilian life. Don't lend or borrow funds, it only brings hurt. Save as much as you can. Think weather you like this job and want to ride it out or get out when your time is up. Good luck and Thank you.

Response by SSG John Bacon made Apr 15 at 2018 7:22 PM

2018-04-15T19:22:17-04:00

Never put expendables (Food, Drinks, Gas) on credit cards. Only use credit for things you could sell back if you get into a scrape.

Response by SSgt Jennifer Stafford made Apr 16 at 2018 2:23 PM

2018-04-16T14:23:37-04:00

Take advantage of the resources available on base, and join USAA.

Response by SFC Private RallyPoint Member made Apr 16 at 2018 2:48 PM

2018-04-16T14:48:59-04:00

-From day one, invest at lease 10- 15% into TSP. Get your account info and get your investments out of the G fund and into the three equity funds (C,S,I). Do this, and you will be on a path of becoming a millionaire by 60-65 with a 10% rate of return.

- Stay away from car dealerships offering "great military specials" Take leadership; TAKE LEADERSHIP That truly cares (even if it is the PSG) with you to shop for a vehicle.
- Don't try to win the popularity contest with cars/clothes/every electronic out there, etc..

Believe it or not, even as a private, You have the potential to build wealth that future you will look back on and be thankful you didn't buy that new 2018 Challenger just to turn a few heads of people you don't know at the red light.

- Seek out the civilian financial advisor embedded with your unit, or go to whichever one that your post provides.

Lastly, observe those who give you advice. Rank does not make you wise, age does not make you "experienced" and being the "cool guy" does not make you wealthy. You will see a lot of guys/girls giving bad advice, just thank them for their time and be conscious enough to know they are probably not the best person to take financial advice from.

Response by SSG Trevor S. made Apr 18 at 2018 10:31 AM

2018-04-18T10:31:55-04:00

1. Don't buy a car without your NCO's advise and consent.
2. Don't buy a car within cab distance of base.
3. You don't owe anyone at home a big chunk of your paycheck unless it is court ordered.
4. Get your spending spree out of the way. Get your computer and the TV too big for your barracks room as soon as you can pay CASH for them. Then stop spending.
5. You don't need the newest iPhone. By the time you can afford it through savings a newer one will come out. It is OK to skip a version.
6. The Snap On truck guy is not your friend.
7. Start an allotment now for a savings/ retirement fund. If you don't get used to seeing it on payday, you won't miss it.
8. If you meet a local of your the gender(s) you are attracted to that seems to be racing you to the courthouse to get married, tell them that you will consider it after the relationship has gone through at least one deployment. Not field exercise, not some TDY trip, a full on deployment. If a deployment isn't available do a Korea and return. It sounds like a huge requirement, but please trust me on this. You will find out more about him/her and their commitment to you through a deployment.
9. "Those establishments" are only for entertainment. It's part of the act.

Response by SPC Joseph Durham made Apr 20 at 2018 11:33 PM

2018-04-20T23:33:20-04:00

Two things: (IDK if there is an plan like this or name of plans)
1) Take part of your monthly pay and save it in a bank account near where you grew up at. At least $50 per month. You can go way higher too. Just start saving. Use autopay or deferred deposit to direct a portion of your pay to that bank account. Then do not touch this money. Take 50% of your sign up or re-signing bonus and put into this account. Then do not touch this money. Forgetting you have this account is a good thing. Just let it build over the years.
2) Sign up for Credit Karma. Add in all accounts including the one above.

Now you are saving money, your credit score will start to go up. At some point, your score will stop going up. Then get a small loan or CC and spend a little. It's important it's a little. $500 loan or debit on a credit card. Pay it off. One or two months. Then watch your Credit Score go up for about 6 months. Getting out of the first 4 years of service with a credit score above 750 is simple. You have college you can attend while in service. Get your degree. Online degrees are good now. Talk to your counselors to avoid deployment times. Some schools will temporarily suspend your classes while on short deployments. Just need to ask before signing up. Know this: Your GI Bill will not get you a degree. Having your Associates by the time of your first term is up will get you your degree.

Once you followed this saving plan for 20 years, pay cash for your first home. Yes. You can do that now. Then down payment on a nice car that will last for 10 or more years. Enjoy your life and look back at everything you have done in the service. You can always stay in the service longer than 20 years. But that is totally your choice now. Having choices is a good thing.

Response by MSgt Brian Dady made Apr 20 at 2018 11:46 PM

2018-04-20T23:46:31-04:00

+1 all that and watch your credit rating. Additionally, watch your credit rating!

Response by MAJ Hugh Blanchard made Apr 29 at 2018 10:10 PM

2018-04-29T22:10:16-04:00

1. Save your money. Set up a savings account and put away at least 6 months' expenses.
2. Don't buy a bunch of stuff on credit. You can get into trouble quickly with credit cards.
3. Don't buy a car, a stereo or other expensive things you cannot afford to buy with cash.
4. Learn about money and investing. Look into the base library, college courses and on-line.
5. Get a college degree, and follow up to earn a Master's degree if you can. You will earn a LOT more money in your life with an advanced degree. Cyber security, Business, Computer Science, and Operations Research degrees will pay HUGE dividends.

Response by MSG Ray Manzano made May 9 at 2018 11:57 AM

2018-05-09T11:57:51-04:00

There's a lot of good advice here for you. What I taught my son is to have only one credit card for emergencies. But if you are getting one make sure it doesn't have an annual fee and if you do use it more often than an emergency then make sure you have money to pay it off. It's okay to use the banks money for 30 days, but when it's do pay it off in full. Besides having a Roth TSP, you should take 10% of your pay each pay day and put it in some kind of savings like a money market savings so you can withdraw it easy, but get paid a higher interest rate. This 10% savings would just be for creating an emergency fund. If possible don't use regular big banks for anything, to many fees. Try getting into a credit union with free checking, debit card (for ATM), better interest rates for money market savings. The main thing is to pay cash for everything. If you can pay cash for it then you don't need it or save the money for it. Don't end up owing anyone or thing, being debt free is the quickest way to be financially free in the future. At less this is what I taught my son, he owes no one and has a credit score of 790 and has about $60,000 saved and he's just turned 25. Just my opinion along with a lot of other good advice here to improve your financial stability.

Response by SFC Rodrick Carter made May 14 at 2018 6:05 AM

2018-05-14T06:05:00-04:00

First of all, save your money. As a single Soldier, you are provided with quarters, a meal card, and uniforms. Stay away from pawn shops, payday loans, and check cashing venues that seek to lure you in and charge high rates. The thrift savings plan is great especially if you are planning to make the military a career. Also, look into a reputable multi-level marketing company that can generate some residual income on the side and not interfere with your duties. Inbox me for info as i know a few that are legit. Last but not least, seek to further your education as well as professional development courses that will benefit your career. My advice is to wait before starting a family.

Response by CPT Earl George made May 18 at 2018 10:32 PM

2018-05-18T22:32:28-04:00

don't lose anything you are signed for.

Response by MSG Greg Kelly made May 19 at 2018 7:29 PM

2018-05-19T19:29:48-04:00

Do not get married and save your money.

Response by GySgt Moses Lozano made May 20 at 2018 2:07 PM

2018-05-20T14:07:16-04:00

Party within reason, (believe it or not, partying gets old and expensive)
Don't buy a new car get a good used on that you can pay off with 2 or 3 years
Don't get married too soon. It's a lifetime/lifestyle expense!
Use your TA college money don't wait until you get out.
Eat at the chow hall more than eating out
Do you really need a $1,000 phone?

Response by SGT Scott Henderson made May 26 at 2018 1:39 PM

2018-05-26T13:39:45-04:00

1) Stay single
2) Max your TSP
3) DON'T buy tacticool shit
4) Stay away from strip clubs

Response by 1SG Harold Piet made May 28 at 2018 1:26 PM

2018-05-28T13:26:37-04:00

Save 10% of your pay for large purchases
save 10% of your pay for retirement
give 10% of your pay to your favorite charity
Go to school as often as possible.
Live on 70% of your pay with out credit.

Response by SPC Ronald Larson made Jun 3 at 2018 12:12 PM

2018-06-03T12:12:46-04:00

I agree eat at the chow hall and don’t get any credit cards or even a car because you won’t need these right away and your wallet will appreciate it when you save your money. I would wait until you transition out of the military to get a car and buy it where you are going to live. You won’t have any payments if you saved enough money leaving you a cushion if you are going to school or finding a job which nowadays is tough.

Response by SGT Joseph Alanzo made Jun 4 at 2018 7:56 PM

2018-06-04T19:56:08-04:00

KEEP THE MONEY IN THE BACK AND BUY ONLY WHAT YOU NEED

Response by SPC Kevin Ford made Apr 7 at 2020 11:10 PM

2020-04-07T23:10:49-04:00

There are lots of educational opportunities in the military. Take advantage of them. There are few investments you can make that will give you better dividends than advanced education.

Well assuming you get a degree in something useful (sorry ancient Babylonian literature majors).

Response by LTC Terrence Farrier, PhD made Nov 29 at 2021 7:42 PM

2021-11-29T19:42:47-05:00

See http://www.cpbs.us. Go to products.