What financial strategies are you using to kill debt & create wealth?

MAJ Steve Sheridan — Fri, 18 Apr 2014 10:29:55 -0400

Response by CW2 Jonathan Kantor made Apr 18 at 2014 10:35 AM

CW2 Jonathan Kantor — Fri, 18 Apr 2014 10:35:17 -0400

Kill debt: attack highest interest debts aggressively and pay them off as soon as possible.<div><br></div><div>Create wealth... Um... yeah... not doing too well on that one.</div>

Response by MSgt Keith Hebert made Apr 18 at 2014 11:01 AM

MSgt Keith Hebert — Fri, 18 Apr 2014 11:01:37 -0400

Dave Ramesy and aggressive growth mutual funds

Response by SGM Matthew Quick made Apr 19 at 2014 10:52 PM

SGM Matthew Quick — Sat, 19 Apr 2014 22:52:01 -0400

Kill debt? I don't live outside my means...although my wife occasionally tries too. ;)

Create wealth? Thrift Savings Plan (TSP)...I hear that's pretty good.

Response by 1SG Shane Hansen made Apr 20 at 2014 9:34 AM

1SG Shane Hansen — Sun, 20 Apr 2014 09:34:13 -0400

I am very persistent and good at killing debt; I refuse to live beyond my means and I don't have credit cards. If I don't have the money, then I don't buy it. Pretty simple really.

Beyond a nicely diversified portfolio of mutual funds, my savings, a traditional IRA, and Roth IRA, I haven't done much to create wealth. I do plan on starting my own business after I retire from the military, but until then I am limited to the amount of time I can devote to my future business endeavors.

I may have to get into debt to make some money though once I do retire. Not looking forward to that stress.

Response by CSM David R. Boone made Apr 20 at 2014 10:29 AM

CSM David R. Boone — Sun, 20 Apr 2014 10:29:54 -0400

I am selling my house in Virginia for quite a bit more than I originally paid for it. I should be able to pay off all my debt and still have a nice chunk of money to put into savings.

Response by SSG Private RallyPoint Member made Apr 23 at 2014 11:48 AM

SSG Private RallyPoint Member — Wed, 23 Apr 2014 11:48:02 -0400

Eliminate depreciating asset loans:

Car loans = paying interest on a depreciating asset. The worst idea ever.

Credit Cards = usually buying stuff that loses value as well. TV etc.

Develop revenue streams.

Buy a house below your means that you can pay off quickly. Be smart when you buy to target the "rental" bracket so you can rent when you PCS to create income streams.

Most importantly, find a way to convince the sig. other that money in the bank is better than luxuries that no one cares about after they meet you anyways (cars, designer clothes, etc)

Response by SPC Brian Curry made Apr 27 at 2014 1:34 PM

SPC Brian Curry — Sun, 27 Apr 2014 13:34:27 -0400

I disagree with using insurance as a form of investments. insurance should always be simply for what it is called . if you have a term life insurance with low monthly rates for a 20 yr period you invest the difference and have more money long term .It also takes years to build a so called cash value that will never match what you could of made from a separate investment. just my opinion

Response by CPL Stephen Kirt made Apr 27 at 2014 1:59 PM

CPL Stephen Kirt — Sun, 27 Apr 2014 13:59:30 -0400

I always wanted to go to the Dave Ramsey FPU classes they did at my last unit but they were always full. So now that I'm here in Kuwait I'm using the extra pay to put money in savings and pay off some of my smaller bills.

Response by SFC Private RallyPoint Member made Oct 9 at 2014 6:47 PM

SFC Private RallyPoint Member — Thu, 09 Oct 2014 18:47:09 -0400

Pay cash for everything. Use credit cards only when in an emergency. Invest in retirement accounts. But first, Give back to God.

Response by CW5 Private RallyPoint Member made Oct 9 at 2014 6:59 PM

CW5 Private RallyPoint Member — Thu, 09 Oct 2014 18:59:43 -0400

I'm finally at a point in life where the only debt I have is a mortgage. It took me quite a while to get here. Friends of mine have the goal of paying off the mortgage before retirement. I won't be there. I have attended Dave Ramsey's FPU, MAJ Steve Sheridan. I like his philosophy on money.

My building wealth strategy consists of savings, TSP, Army retirement (see savings), and an IRA. I would like to retire - for good - and be able to enjoy some years of good health, travel, etc.

Response by MAJ Private RallyPoint Member made Oct 9 at 2014 7:15 PM

MAJ Private RallyPoint Member — Thu, 09 Oct 2014 19:15:26 -0400

The number one thing on the table staring every employee in the face is to max out their deferred compensation contributions each year. This means contribute to your 401(k), or the military equivalent to the 401(k) the Thrift Savings Plan. Bottom line you can take up to $17,500 of your earned income and remove it from taxable income by contributing to these type of plans. Most folks will save at least a minimum of $4,200 each year in taxes (15 percent federal and 9 percent state, if applicable). The added bonus is your earnings on these plans are also tax deferred until you start drawing out money at age 59 1/2 or later (mandatory at age 70 1/2).

The second pillar is to consolidate debt. Get rid of credit card and auto debt ASAP. It's high rate and not even deductible on your tax return. Get a HELOC and pay off your debt with it. HELOC debt is deductible on schedule A and typically low interest.

Third, get on a budget and stick with it.

Finally, get with a reputable financial planner and have them help you with your financial retirement plan. Its never to early to do this. You have to know "how much" you need to pack away each month in order to meet your retirement goals. You also need to know what to invest in and how to diversify risk and meet investment objectives. Investing in high risk stuff without doing the math to diversify is not smart.

Response by SPC David S. made Oct 9 at 2014 7:19 PM

SPC David S. — Thu, 09 Oct 2014 19:19:55 -0400

MAJ Steve Sheridan live within my means and with surplus money I have it is invested. Started investing early in 20's. 850 credit score as this results in lower interest rates. Learned to cook and don't eat out. Don't rent. Never bought a brand new car.

Response by SGT Private RallyPoint Member made Oct 19 at 2014 5:44 PM

SGT Private RallyPoint Member — Sun, 19 Oct 2014 17:44:12 -0400

currently, I'm putting 11% of my pay into a lifecyle fund in the TSP and $500 from every paycheck goes into savings.

Response by 1SG Michael Blount made May 6 at 2015 2:45 PM

1SG Michael Blount — Wed, 06 May 2015 14:45:22 -0400

1. IF you can swing it, transfer your existing balances to an unused credit card, then put your existing credit cards in a drawer someplace.
2. After subtracting rent/mortgage, groceries and other necessaries, every last dime goes against that outstanding debt.
3. After a month, transfer that outstanding balance to another credit card, then see Step #2.
Keeping the interest charges at an absolute minimum will accelerate the time it takes to kill that debt. Oh, and Step #4:
4. Whatever got you into financial hot water - don't ever, ever, ever do it again. It doesn't work.

Response by MAJ Private RallyPoint Member made Sep 12 at 2016 1:55 AM

MAJ Private RallyPoint Member — Mon, 12 Sep 2016 01:55:18 -0400

Refinancing my home with USAA from 30 years to 15 years. I mention USAA because they gave me such an awesome deal. I was going to do it with BoA, the original bank, but their interest was a whole 1% more than USAA and to top it of, USAA closing costs' were $4,000 versus BoA $6,000. That is what I call service!