In this episode of From Military to Millionaire, former Marine David Pere breaks down how to budget the right way and still keep your beer money.
TSP, TSP, TSP
If you’re smart with your money and make good decisions, you can exit the military with a nice chunk of cash. First of all, pick a specialty job that gets you extra pay. Then, take that extra money and save it. Next, make sure you utilize your Thrift Savings Plan (TSP). If you invest in your TSP and max it out as much as possible for the first four or five years, by the time you retire, you can live comfortably on that money alone.
Set up a savings allotment, always put the money in there, and then don’t touch it until you can start investing in other ways. When living in the barracks, eat at the chow hall. Don’t increase the amount of money you spend when you get a pay increase. Volunteer for training, as being out in the field forces you to not spend money. When you’re deployed, maximize your TSP allotment.
Make a Budget and Use It
Make a budget for your alcohol consumption to keep yourself from overspending. No, really. Set out how much you’re going to spend on fun stuff like going out with friends and stick to that number. It sounds basic, but it’s the first step to financial readiness.
Use Your VA Loan!
Utilize the VA Loan to buy up to a fourplex for no money down, live in one unit, and rent out the rest. The money from your tenants will probably cover your mortgage, meaning you live rent-free while building equity. If you must buy a car, buy a used one that is three-five years old. Marry someone who doesn’t need you and who has good spending habits.
Ready to Find Out More?
David Pere is a former 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.