We all want to learn new ways to save more money and invest the right way. But for lots of service members and military families, that’s a little difficult. PCSing costs money, plenty of military spouses can’t find employment and it’s not like the DoD gives merit-based raises.
If you’re ready to embrace financial freedom, check out this amazing free plan from David Pere.
Thrift Savings Plan
Financial freedom in the military is possible. The first thing to do when joining the military is learn about the matching Thrift Savings Plan (TSP) contribution. Put in at least 5% immediately; once you hit 24 months in the military, the government starts matching the 5%. Next, build a one-month emergency fund. Whatever you spend in a month, have that saved in case of an emergency.
Pay Off Debt ASAP
Pay off all your high-interest debt and don’t acquire it again. Start house hacking, where you use the zero-down VA loan to buy a two to four-unit home and rent the units you don’t live in. Your tenants pay your mortgage, and you live rent-free (or close to it).
Build Cash Reserves
Keep $10,000 in cash reserves in case something goes wrong with your property. From there, increase your emergency fund to cover three to six months, and maximize your TSP contributions, maybe also opening a ROTH IRA and maxing out those contributions as well. Lastly, invest in either real estate or index funds, depending on your preference. If investing in index funds, put in at least a little bit every month.
Find Out More
David Pere is an active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.
Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No B.S. Guide to Military Life here.
Looking for more ways you can be financially strong? Check out what’s new on our Mighty Money page.