Yes. Yes. Yes.
The military is the best place to invest. You are given extra money for housing and food or it is provided. Your paycheck is steady and you can have allotments send money straight to various accounts. Here are some tips to get you started.
Buy an inexpensive car. Expensive cars will not help you grow your wealth. Your car should be less than $5000. Period. My first car in the military was $8500 back in the year $2000. It had 18% interest because I had no credit. It was a nightmare. After that, my next car was $2800 back in 2008. It was a 2001 Ford ZX2, red. Finally, my current car cost $7500 and is a 2012 Ford Focus. Do not spend too much money on your car. Put your money into things that make you more money.
Know your military pay. Study your military pay terms such as BAH (housing allowance), BAS (food), and FSA (family separation). Many of your benefits are tax-free.
Use allotments. You can choose to send your money directly to different accounts. Use this to send money different to different savings and investing accounts. It is also a good way to avoid lifestyle inflation.
Live below your means. If you are comfortable living as an E-5, then keep that lifestyle. Even when you pick up E-6 or E-7. There is a term called “Lifestyle Inflation” which means as you make more money your lifestyle also goes up. Do the opposite. Spend less, save more, and be happier. Knowing that you have the resources to handle any emergency is a great feeling.
Buy a house early. I know it is scary but buy a small house as soon as you can. The military has the “VA loan” which essentially allows you not to pay a down payment. Everyone else is working hard to save for a down payment and you have been gifted the opportunity to get into a house early. Look at your BAH rates for your location. Find a home that BAH can cover your house mortgage (principal, interest, insurance, and property taxes) and most of your bills. For example, we bought our second home in 2017 in Pensacola, Fl. The total mortgage was $1050 and my housing allowance was $1600. This is a sure way to build wealth.
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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