Doing anything for the first time feels scary. But that’s just because it’s new. In this episode of From Military to Millionaire, David breaks down how you can use your time in service to building your overall wealth.
The first step is essential for building wealth: pay off your high-interest debt. Put every dollar you can into paying off one loan, then move on to the next and the next until all your debt is paid off.
Utilize the Thrift Savings Plan (TSP) in an automated way. Contribute money through an investment plan that makes sense for you and your goals and leave it there. A mild savings strategy includes putting 10% of your base pay into your TSP every paycheck. The government will match five percent, so you’ll be saving a total of 15%.
On top of that, put another 10% into a savings account every paycheck. After your first term, you’ll have a decent amount of savings and a great start to a compounding retirement fund.
Following this strategy during your first four years of service, you set yourself up to be a millionaire by retirement age.
Want to Know 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.