Finance
Enlisted
Money
Responses: 66
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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
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
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SSG (Join to see)
3) I disagree on this one. Getting a credit card is good for building your credit history / score. If you don't plan on making large purchases in the next 2-3 years then get two credit cards (Star Card from AAFES to save on gas, and regular one from your bank as long as there an no annual fees). Just make sure you pay it off in full every month so you don't pay interest. As an added benefit, credit card purchases often have more protection against fraudulent purchases than debit cards or checks.
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Sgt Aaron Kennedy, MS
SSG (Join to see) - The key point on #3 is "just because you can." Credit is a valuable tool, just like many others. Get it because you need the tool. It's generally easier to build credit history than REBuild credit if you screw it up.
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SSG (Join to see)
The problem with the way credit score works is that more accounts the better off you are, and older accounts have even bigger effect. So sometimes it makes sense to get credit cards "because you can", even if you don't plan on using them (just make a small purchase every couple months in case your bank closes inactive accounts). There is a drawback - credit inquiries lower your score - but this is temporary (about two years), so a new Soldier who is unlikely make large purchases won't be affected by getting couple cards in a short petiod of time. In fact, by the time he makes SPC he has two accounts, each at about two years, and the credit inquiries are gone.
Of course that's just one way to build credit history, but it worked for me: from literally zero credit history (not sure how it translates to score but probably pretty low) to 700s in 2-3 years; over 780 in less than 5.
Of course that's just one way to build credit history, but it worked for me: from literally zero credit history (not sure how it translates to score but probably pretty low) to 700s in 2-3 years; over 780 in less than 5.
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LTC John Bush
Good advice. Credit gets more young (and old) soldiers in trouble than anything else and is often the root of other problems. Getting credit is far too easy and getting out of the debt trap takes years and is often the root of family dysfunction. If you get a credit card pay it off every month, do not carry it with you and if you do not have that level of personal discipline do no get one. Your best credit reference for a serious requirement is a healthy bank account and a steady income. The credit history story is often a ploy to suck you into debt. Been there done that got the Tshirt and am OK now!
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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.
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SPC David Willis
Best piece of advice I ever got was if you go to a bar/club. Take out your cash and your ID and leave your card at home. If a naked woman is asking for money and you have access to it she will get it, if you don't have access to it she wont...
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SPC David Willis
SGT (Join to see) no but I’d have gladly given it up. Put several single moms through school and no medal of freedom for me…
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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.
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.
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LCpl Shane Couch
Funny about the payday loans. My barracks roommate took out a payday loan every paycheck, but only enough for what he was going to use for that pay period. They were paid every pay period, on time. By doing this he got his credit score to near perfect.
Now that being said, I do not suggest doing that. But it something that I remember having happened and every time I see or hear about payday loans, I always remember my roommate.
Now that being said, I do not suggest doing that. But it something that I remember having happened and every time I see or hear about payday loans, I always remember my roommate.
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SSG (Join to see)
I would also include, taking some financial classes, talk to your NCO when you decide to by a car. I have personally witnessed a car being towed from the barracks because a PV1 fresh to the unit went and bought a car he couldn't afford.
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SPC Matthew Tinder
LCpl Shane Couch - There is a less expensive way to do that. Get a credit card- even if all you can get is an extremely high interest rate. Pay it off just like above every month or pay period as you like but save a ton on interest and fees of payday (predatory)loans. All major credit cards will report to the bureaus ensuring your score accurately reflects your responsible actions. I would not put that same faith in a payday loan outlet.
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LCpl Shane Couch
SPC Matthew Tinder - Oh I very much agree. It's just something I always remember about my roommate.
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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.
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.
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LCDR (Join to see)
There oughta be a grizzled old vet standing outside every nightshade car dealer outside every base.
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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.
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.
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LCpl Shane Couch
Cpl Bill Fleischauer - LOL! Yes there can be memories made, both good and bad. And there are some memories that money can't wash away.
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LTC Jason Mackay
To tag on to uniform care, use your military clothing allowance for military clothing. Do not waste your money on setting up your dress uniform. Look at the reg, get with your Sqaud Leader, and do it yourself. Easy money right there.
If you have a situation where you need shiny black boots ( like the 82d), shine them yourself. Don't pay the offpost boot-black guy.
If you have a situation where you need shiny black boots ( like the 82d), shine them yourself. Don't pay the offpost boot-black guy.
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LCpl Shane Couch
And avoid that fake boot black "paint", it will look good until you begin to walk in them. I remember several people getting that done and it looks like crap once it cracks and begins to peel off. Polish and water work great and polish and alcohol work even better. Shining your boots just takes time and practice. For dress shoes, go with coraframs (or however it is spelled). They will never lose their shine as long as you take care of them.
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-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.
-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.
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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
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.
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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.
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.
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Patricia Overmeyer
Ok, just finished talking with a new client. Another one who should have gotten a prenup. She maxed out four credit cards that he didn't even know she had. Guess what, he gets to pay half of those debts because they were acquired during marriage. Doesn't matter that he didn't know. With a prenup, his ass would have been saved from that debt because debts racked up by each party are their own debts, unless you get a mutual credit card. Never do that.
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Listen to all this excellent advice from previous comments,mine will be more basic try to stay out of the bars and strip joints.
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