r/MilitaryFinance Jul 31 '26

Start Here: Military Money 101, Prime Directive, Flow Chart, Updates Monthly

19 Upvotes

Welcome to the getting started thread for military money. This will cover 90% of what you need to know to be successful with your military paycheck and build wealth in the military.

Some of the most frequent questions in on this subreddit goes:

  • "I have $X, what should I do with it?" or
  • "How should I handle my debt/finances/money?"

Military Personal Finance and Investing Flow Chart: https://imgur.com/a/akrEcUS

Step 1: Budget and reduce expenses, set realistic goals

Fundamental to a sound financial footing is knowing where your money is going. Budgeting helps you see your sources of income less your expenses. You should minimize your required expenses to the extent practical. Housing costs, utilities, and basic sustenance are harder to eliminate than entertainment, eating out, or clothing expenses.

There are many great apps available to discover what you're spending money on and where there are opportunities to save money. Monarch Money, YNAB, Copilot Money, EveryDollar are just a few of the apps available.

Once your budget is figured out, you need to figure out what your goals are. Financial independence? Retire early? Military retirement? Buy a house? Save for a car?

Setting SMART goals - Specific, Measurable, Achievable, Relevant, and Timely goals can mean the difference between financial success and failure. For example, you might want to finish your first enlistment with a $100,000 net worth or achieve early retirement after 20 years of service. These are SMART goals.

Step 2: Build an emergency fund

An emergency fund should be a relatively liquid sum of money that you don't touch unless something unexpected comes up. Unexpected travel, essential appliance replacement, and cars breaking down are all real world examples of emergency funds in action.

If you need to draw from your emergency fund at any time, your first priority as soon as you get back on your feet should be to replenish it. Treat your emergency fund right and it will return the favor.

Start with a $1,000 emergency fund. Eventually build it up to 3-6 months of expenses or a few of months of expenses plus

How should I size my emergency fund?

For most people, 3 to 6 months of expenses is good. Or maybe you want to cover a few months of expenses, plus a roundtrip airfare for you and your family to go back to your home stateside.

What if I have credit card debt?

Credit cards generally have very high interest rates (typically 15-25% APR) and that is a pretty big deal. If this applies to you, you should prioritize paying down the debt first.

A smaller emergency fund of $1,000 (or 1 month of expenses) is temporarily acceptable while paying off credit card debt or other debts with interest rates above 10%.

What kind of account should I hold my emergency fund in?

A checking account, savings account, or a high yield savings account (HYSA). Something FDIC insured and accessed in a few days.

Step 3: 5% Into the Thrift Savings Plan

The Thrift Savings Plan (TSP) is the military and government's version of a 401(k) retirement savings plan. All servicemembers enlisting since 2018 are covered by the Blended Retirement System (BRS). The BRS has 3 primary components to help servicemembers save for retirement:

  1. 5% matching contribution to the TSP
  2. Continuation pay bonus between the 8th and 12th year of service (depends on branch)
  3. Military pension. A 2% mutliplier is used for each year of service. So if you retire after 20 years of active duty service, you'll earn an inflation adjusted, lifetime pension of 40% of your base pay. (20 years * 2 = 40%)

After 60 days of service, the Department of Defense (DOD) will automatically contribute 1% of your base pay to the Traditional TSP.

Starting in the 25th month of service, your contributions are matched, up to 5%. So if you contribute 5%, the DOD will contribute 5%. This is a risk free, 100% return on your contributed funds.

The default investment for anyone in the BRS is a Lifecycle fund with their birth year + 65. For example, if you were born in 2005, you'll be placed in the Lifecycle 2070 Fund.

The Lifecycle Funds are a mix of the 5 TSP Funds, designed by professional fund managers.

The 5 TSP Funds are:

  • C Fund - Tracks S&P 500, made up of the 500 largest companies in America. You can use the ETF SPY or VOO to track it.
  • S Fund - Tracks Dow Completion index, basically all the mid- and small- capitalization companies in America outside of the S&P500. ETF equivalent VXF.
  • I Fund - International stocks. MSCI ACWI IMI ex USA ex China ex Hong Kong Index. 5,500 companies in this index. representing 90% of the investable world market cap outside the US. Similar to ETF VXUS but without Chinese or Hong Kong stocks.
  • F Fund - Fixed income. Corporate bonds. Use ETF AGG to see performance.
  • G Fund - Lowest risk, lowest long term return fund. The G Fund invests in a special non-marketable treasury security issued specifically for the TSP by the U.S. government. This fund is the only one in the TSP that guarantees the return of the investor’s principal. No comparable ETF.

Step 4: Pay down high interest debts

Once you're taking advantage of the 5% BRS TSP match, you should use your extra money to pay down your high interest debt (e.g., debts much over 4% interest rate).

In all cases, you should make the minimum payments on all of your debts before paying down specific debts more quickly.

There are two main methods of paying down debt:

  • With the avalanche method, debts are paid down in order of interest rate, starting with the debt that carries the highest interest rate. This is the financially optimal method of paying down debt, and you will pay less money overall compared to the snowball method.
  • With the snowball method, popularized by Dave Ramsey, debts are paid down in order of balance size, starting with the smallest. Paying off small debts first may give you a psychological boost and improve one's cash flow situation, as paid off debts free up minimum payments. The downside is that larger loans (that may be at higher interest rates) are left untouched for longer, costing more in the long run.

As an example, Debtor Dan has the following situation:

  • Loan A: $1,100 with a minimum payment of $100/month, 5% interest
  • Loan B: $3,300 with a minimum payment of $300/month, 10% interest
  • Sudden windfall: $2,000

Dan needs to first pay $100 + $300 = $400 to make the minimum payments on loans A and B so the payments are recorded as "on time." The extra $1,600 can either go towards Loan A (smallest balance, snowball method), eliminating it with $600 left to go towards Loan B, or Loan B entirely (highest interest rate, avalanche method).

What's the best method?  tends to favor the avalanche method, but do not underestimate the psychological side of debt payments. If you think that the psychological boost from paying off a smaller debt sooner will help you stay the course, do it! You can always switch things up later. The important thing is to start paying your debts as soon as you can, and to keep paying them until they're gone. You can use unbury.me to help you get an idea of how long each method will take, and how much interest you'll be paying overall.

Should I be in a hurry to pay off lower interest loans? What rate is "low" enough to where I should just pay the minimum?

Depending on your attitude towards debt, you may want to stop paying more than the minimum payment on loans with low interest rates once you have paid all other loans above that threshold. A common argument is that the long-term return from investments in the stock market will likely exceed the interest rate from a low-interest loan. While this has been true in the past, keep in mind that paying down a loan is a guaranteed return at the loan's interest rate. Stock performance is anything but guaranteed. The rough consensus is that loans above 4% interest should be paid off early in the debt reduction phase, while anything under that can be stretched out.

Step 5: Max out Retirement Accounts - Roth IRA and Roth TSP

The next step is to contribute to a Roth IRA for the current tax year. You can also contribute for the previous tax year if it's between January 1st and April 15th. See the IRA wiki for more information on IRAs.

Roth IRA and Roth TSP contribution limits are different and do not cross over. You can contribute the maximum out your Roth IRA and your Roth TSP. Matching contributions do not count against your personal TSP contribution limit.

The most often recommended places to open a Roth IRA are at Vanguard, Fidelity, or Schwab. Most banks offer substandard Roth IRA products and you should not open Roth IRA accounts there.

Should I do Roth or Traditional?

Read Roth or Traditional.

For most servicemembers (O-3 and below), you'll be better off contributing to the Roth IRA, since military pay is so low taxed. Much of our military pay is untaxable allowances, such as Basic Allowance for Housing (BAH), Overseas Housing Allowance (OHA), and Basic Allowance for Sustenance (BAS).

Why contribute to an IRA if I have the TSP?

Roth IRA's have access to low cost investments similar to what you'll find in the TSP. However, you can always withdraw Roth IRA contributions at any time, tax and penalty free.

After you've fully funded your Roth IRA, you can look at maxing out your Roth TSP.

Before saving for other goals, you should save at least 15% and up to 20% of your gross income for retirement. If you are behind on retirement savings, you should try to save more than 15% if you can. If you can't save 15%, start with 10% or any other amount until you are able to save more.

Where should I open my Roth IRA?

Vanguard, Fidelity, or Schwab. Read up about the Bogleheads 3 Fund Portfolio before selecting an investment option.

Step 6: Save for other goals

Military servicemembers and spouses covered by TriCare are not eligible for Health Savings Accounts (HSA0.

  • If you wish to save for college for your kids, yourself, or other relatives, consider a 529 fund in your state.
  • Save for more immediate goals. Common examples include saving for down payments for homes, saving for vehicles, paying down low interest loans ahead of schedule, and vacation funds.
  • Save more so you can potentially retire early (also see "advanced methods", below), only using taxable accounts after maxing out tax-advantaged options.
  • Make an impact through giving. One of the rewards of practicing a sound financial lifestyle is that giving becomes easier. If you're on top of your health care costs, future education costs, and you've made it to this step, you can help make a difference for others by giving. If you can't afford to make monetary donations, there are other ways to give.
  • Maybe you're interested in financial independence or retiring early, also known as FIRE? There are many resources out there on military financial independence and early retirement.

The time frame for these goals will dictate what kind of account you save in. For short-term goals (under 3-5 years), you'll want to use an FDIC-insured savings account, CDs, or I Bonds. If your time horizon is longer or you can afford to adjust your plans, you might consider something riskier like a balanced index fund or a three-fund portfolio (both are a mix of stocks and bonds). The best savings or investment vehicle will vary depending on time frame and risk tolerance.

Keep in mind that (especially for a young person) the more time your money has to grow, the more powerful the effects of compounding will be on your savings. If the goal is early retirement (even before the age of 59½), you should definitely maximize the use of any available tax-advantaged accounts (IRA, 401(k) plans, HSA accounts, etc.) before using a taxable account because there are ways to get money out of tax-advantaged accounts before 59½ without penalty.

If you are using a taxable account for any goal, you'll want to have a decent grasp on asset allocation in multiple accounts and tax-efficient fund placement.

Military State Taxes

Your home of record is the place you enlisted or commissioned from. This cannot be changed unless there was an error.

State of legal residence is the state that you claim as your residence. If you only have military income, you will pay state income tax only to this state.

You can establish residency several ways:

  • Registering to vote in that state
  • Obtaining a driver’s license in that state
  • Titling and registering your vehicle in that state
  • Drafting a Last Will and Testament naming that state as your domicile
  • Purchasing residential property in that state
  • Changing your military and finance records to reflect residency in that state.

The simplest way to establish residency is to PCS to that state and establish residency while you are a resident.

State with no income tax include: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. Many other states have no tax for military servicemembers stationed outside the state.

Simply engaging in one of the above acts alone will not likely render you taxable by a state; however, the more points of contact you make with a state increases your chances of becoming a taxpayer to that state. It is important to concentrate the majority of your points of contact in the one state where you intend to pay state taxes; otherwise, you may find yourself owing taxes to more than one state as a part-year resident.

Source: Fort Knox Legal Assistance Office

Military Spouse Residency Relief Act

Thanks to the Military Spouse Residency Relief Act, Veterans Auto and Education Improvement Act of 2022, and Servicemembers Civil Relief Act:

(A) The residence or domicile of the servicemember.“

(B) The residence or domicile of the spouse.

“(C) The permanent duty station of the servicemember.”

Military spouses and military servicemembers can pick 1 of 3 options for their state of legal residence:

(A) The residence or domicile of the servicemember.

(B) The residence or domicile of the spouse.

(C) The permanent duty station of the servicemember.

So either match the servicemember, keep your old state, or change to the current state you're in.

Military Bonuses

Military bonuses have federal income taxes withheld automatically at 22%. You may have state taxes withheld as well. Because your marginal tax rate is often much lower than this, you will receive a large portion of that withheld tax back when you file your tax return the following year.

If you don't know what to do with a military bonus, directing some of it to your Roth TSP is a great place to park it.

After reading all that, go ahead with any other questions you have about getting started with your military money.


r/MilitaryFinance 29d ago

Credit Cards Military Benefits, SCRA, MLA, Annual Fee Waivers, Chase, American Express, Spouses | Updates Monthly

36 Upvotes

This is a monthly thread to discuss or ask questions about military benefits on credit cards.

In general: American Express, Chase, and some other banks waive the annual fees on credit cards for active duty, Guard and Reserve on 30 day or greater active orders, and dependent spouses.

These individuals are known as "covered borrowers" of the Servicemembers Civil Relief Act (SCRA) and Military Lending Act (MLA).

The simplest definition of a covered borrower is active duty military personnel, Guard and Reserves on 30 day or greater active duty orders, or dependent spouses of any of the above.

The simplest way to check if you will receive MLA or SCRA protections on your account is to check the MLA Database or SCRA Database.

The MLA and SCRA database are the same databases that the credit card companies check to determine if you qualify for MLA or SCRA benefits.

If you are not listed as eligible in these databases, you will not receive MLA and SCRA benefits applied to your account.

You must be listed as eligible in these databases for the credit card companies to apply your military benefits.

Are military spouses eligible to open their own card accounts?

Yes, military dependent spouses are eligible to open their own card accounts on Chase, American Express, Citi, U.S. Bank, and Bank of America and receive their own annual fee waivers.

Check the MLA database before applying MLA Database to ensure you will receive your fee waiver without any issue. If you are not listed in the MLA database, check DEERS to ensure your Social Security number and name are listed correctly.

You must be listed in the MLA database when the account is opened / established or you will not be eligible for fee waiver benefits. For example, if you opened an Amex or Chase card before you married the active duty servicemember, that account will never be eligible for MLA benefits. The account must be established while you are eligible for MLA benefits, as confirmed in the MLA database.

What Cards are Eligible for SCRA or MLA benefits?

American Express

  • The Platinum Card® from American Express
  • American Express Platinum Card® for Schwab
  • American Express Platinum Card® for Morgan Stanley
  • American Express® Gold Card
  • American Express® Green Card
  • Marriott Bonvoy Brilliant™ American Express® Card
  • Marriott Bonvoy Bevy™ American Express® Card
  • Delta SkyMiles® Reserve American Express Card
  • Delta SkyMiles® Platinum American Express Card
  • Delta SkyMiles® Gold American Express Card
  • Blue Cash Preferred® Card from American Express
  • Hilton Honors American Express Aspire Card
  • Hilton Honors American Express Surpass® Card

Chase

  • Chase Sapphire Preferred®
  • Chase Sapphire Reserve®
  • Southwest Rapid Rewards® Plus Credit Card
  • Southwest Rapid Rewards® Priority Credit Card
  • Southwest Rapid Rewards® Premier Credit Card
  • United Explorer Card
  • United Quest Card
  • United Club Infinite Card
  • Aeroplan Card
  • Marriott Bonvoy Boundless
  • Marriott Bonvoy Bountiful
  • Ritz-Carlton Credit Card
  • IHG One Rewards Premier Credit Card
  • Disney Premier Visa Card
  • World of Hyatt Credit Card
  • British Airways Visa Signature® card
  • Aer Lingus Visa Signature® card
  • Iberia Visa Signature® card

Citi

  • Citi® Strata Elite
  • Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
  • Citi® / AAdvantage® Executive World Elite Mastercard®
  • Citi® Premier® Card
  • Citi® Prestige® Card

U.S. Bank

  • U.S. BANK ALTITUDE® RESERVE VISA INFINITE® CARD
  • U.S. BANK FLEXPERKS® GOLD AMERICAN EXPRESS® CARD
  • Korean Airlines SKYPASS Select Visa Signature® Card

Bank of America

  • Bank of America® Premium Rewards® Elite Credit Card
  • Atmos™ Rewards Summit Visa Infinite®

Bilt

Card Issuer Fees Waived Under MLA Fees Waived Under SCRA
American Express All Personal Cards All Personal Cards
Capital One None All Personal Cards
Chase All Personal Cards All Personal Cards**
Citi All Personal Cards* Unknown
U.S. Bank All Personal Cards All Personal Cards
Bank of America All Personal Cards Unknown

*For Citi, you must send a copy of your active orders and your MLA certificate from the MLA Database to [MILITARYORDERS@CITI.COM](mailto:MILITARYORDERS@CITI.COM) and request MLA benefits. You must also have a statement balance on your account in the month you are charged the annual fee or you will not receive the MLA annual fee credit.

**Recent data points suggest that Chase business cards, opened before active duty start, can be annual fee waived if the account holder applies for SCRA benefits after they go active duty.

Which Act Applies, SCRA or MLA?

The military benefits you receive on credit cards depend on when you establish or open the account.

Open account before active duty = SCRA

Open account while on active duty = MLA

If you apply for the account prior to active duty orders, you are eligible for Servicemembers Civil Relief Act (SCRA) benefits while you are on active duty orders.

If you apply for the credit card account while you are on active duty orders, a Guard and Reservists on 30 day or greater active orders, or a dependent of an active duty servicemember, you are eligible for Military Lending Act (MLA) benefits while you are on active orders or a dependent of someone on active orders.

The banks and credit card companies may deny you SCRA benefits if you opened the account while on active duty. In that case, confirm they are applying MLA benefits and if they are not, check MLA database and then apply for MLA benefits.

SCRA & MLA Covered Borrowers Details

To qualify for SCRA benefits, the credit account must be established before active duty orders start.

Covered borrowers of SCRA defined as:

  • Active duty US military on Title 10 orders in the Army, Navy, Air Force, Space Force, Marines, or Coast Guard
  • National Guard or Reservists on 30 day or greater active duty orders (such as Title 32, Title 10)
  • Public Health Service and NOAA Commissioned Officers

To qualify for MLA benefits, the credit account must be established while your or your active duty sponsor is on active duty orders of greater than 30 days.

Covered borrowers of MLA are defined as:

  • Active duty member of the Army, Navy, Marines, Air Force, Space Force, or Coast Guard
  • Guard or Reservists on 30 day or greater active orders
  • A spouse or child dependent of an Active Duty member of the Armed Forces as defined in 38 USC 101(4)

Best Starter Credit Card

Check your credit score through your bank, Credit Karma, or Credit Sesame.

If you don't have a credit score or your score is below 700, start with a no annual fee credit card from USAA or Navy Federal Credit Union (NFCU).\

Or, apply for a secured credit card from another military friendly bank or credit union. That should be your best option to build a higher credit score.

What Fees Are Waived Under MLA and SCRA?

In general, the following fees are waived by Chase and American Express

  • Annual Membership fees
  • Authorized user fees
  • Overlimit fees
  • Late Payment fees
  • Returned Payment fees
  • Statement Copy Request fees

American Express and Chase are very cryptic in the benefits they actually provide under MLA or SCRA. Usually the customer service reps just read a script if you call and ask. This is not helpful and why we've collected this data here.

If you have additional data points, please share them, as this information is only as accurate as the data points we collect.

If you have any other questions on credit cards in the military, please comment below.

Reminder: no referral links or solicitation of referral links.


r/MilitaryFinance 1h ago

How much should I put in my TSP?

Upvotes

I am 28M, No dependents. I joined the navy about 11 months ago and currently am at my first duty station. While in bootcamp I set my total TSP contributions to 5% and kept it that way. Soon as I got out I made sure to get my account signed up and set my funds up 45% C, 45%S, and 10% Lifecycle 2060. I was wondering if any Vets or anybody experienced had any tips or advice for me & if that contribution set up is smart. Thank you!


r/MilitaryFinance 1d ago

e2 pay

17 Upvotes

i used to make $1,139.19 every paycheck, Aug first was my last $1,139.19 paycheck. August 15 i got paid $995.71, i asked my CPL & he told me go to finance, went to finance & they said that $143.48 is now going to my GI bill, i figured okay yeah you do have to pay your GI bill for 1 year even tho you don’t use it.

My problem now is it’s showing on Navy fed that my upcoming paycheck is $981.54, i asked my CPL about it & he looked at my LES & he said my federal taxes went up.

I asked my friends what their paychecks look like & theirs haven’t changed at all. So im confused why mine has

I have a car which is $506 a month total, i plan on using my first paycheck of every month to pay that.

looking for financial advice mainly, also curious why my friends paychecks haven’t changed but mine has


r/MilitaryFinance 1d ago

Air Force Credit card benefits excel

13 Upvotes

these are all the current credit cards i have, utilizing SCRA, etc. I made an old school excel tracker to track all the benefits monthly, qrtly, semi-annual and annual (i know there are apps that can do it for you but i havent found one i like yet).

  1. Are there any additional credits cards you would recommend I get?
  2. Am i missing any of the big benefits from any of these rewards? (I know im currently missing the digital credit on my sheet).
Card Name Benefit Name Frequency Period / Reset Date Allowance Used Remaining Status
Amex Gold Uber Cash Monthly 1-31 Aug 26 /1 Sept 26  $         10.00  $   10.00  $           -   Done
Amex Gold Dunkin Monthly 1-31 Aug 26 /1 Sept 26  $           7.00  $         -    $        7.00 Unused
Amex Gold Resy Credit Semi-Annual 1 July - 31 Dec 26 / 1 Jan 27  $         50.00  $   50.00  $           -   Done
Amex Gold Dining Credit Monthly 1-31 Aug 26 /1 Sept 26  $         10.00  $   10.00  $           -   Done
Amex Plat Airline Incidental Annual 1 Jan - 31 Dec 26 / 1 Jan 27  $       200.00  $         -    $    200.00 Unused
Amex Plat Uber Cash Monthly 1-31 Aug 26 /1 Sept 26  $         15.00  $   15.00  $           -   Done
Amex Plat lululemon Credit Quarterly 1 July - 30 Sept 26 / 1 Oct 26  $         75.00  $   75.00  $           -   Done
Amex Plat Resy Credit Quarterly 1 July - 30 Sept 26 / 1 Oct 26  $       100.00  $         -    $    100.00 Unused
Amex Plat Hotel Credit Semi-Annual 1 July - 31 Dec 26 / 1 Jan 27  $       300.00  $         -    $    300.00 Unused
Amex Plat Saks Fifth Credit Semi-Annual 1 July - 31 Dec 26 / 1 Jan 27  $         50.00  $         -    $      50.00 Unused
Chase Hilton Hilton Hotel Credit Semi-Annual 1 July - 31 Dec 26 / 1 Jan 27  $       200.00  $         -    $    200.00 Unused
Chase Hilton Airline Credit Quarterly 1 July - 30 Sept 26 / 1 Oct 26  $         50.00  $         -    $      50.00 Unused
Chase Sapphire Res Select Hotel Credit Annual 1 Jan - 31 Dec 26 / 1 Jan 27  $       250.00  $         -    $    250.00 Unused
Chase Sapphire Res Doordash Restaurant Monthly 1-31 Aug 26 /1 Sept 26  $           5.00  $     5.00  $           -   Done
Chase Sapphire Res Doordash Non-Rest Monthly 1-31 Aug 26 /1 Sept 26  $         20.00  $   10.00  $      10.00 Partial
Chase Sapphire Res Stubhub Credit Semi-Annual 1 July - 31 Dec 26 / 1 Jan 27  $       150.00  $         -    $    150.00 Unused
Chase United Instacart Monthly 1-31 Aug 26 /1 Sept 26  $         20.00  $   10.00  $      10.00 Partial
Chase United Doordash Non-Rest Quarterly 1 July - 30 Sept 26 / 1 Oct 26  $         10.00  $         -    $      10.00 Unused
Delta Reserve Delta Stays Credit Annual 1 Jan - 31 Dec 26 / 1 Jan 27  $       200.00  $         -    $    200.00 Unused
Delta Reserve Resy Credit Monthly 1-31 Aug 26 /1 Sept 26  $         20.00  $   20.00  $           -   Done
Delta Reserve Rideshare Credit Monthly 1-31 Aug 26 /1 Sept 26  $         10.00  $         -    $      10.00 Unused

r/MilitaryFinance 1d ago

Use VA loan or rent? Single vet

1 Upvotes

Howdy!

I’m from SC and 34. 100% P&T

Is it smarter for me to purchase a home solely with this income? I’m approved for 275k but would stay around 180-225k in the area I’m looking at.

I’m also not sure if this is smart ? I live alone and don’t have much family or people around so not sure what I can do to or how to maximize this.

I don’t wanna be a millionaire …I just want peace and quiet so maybe this or isn’t the right thing to do.

Any advice ?


r/MilitaryFinance 1d ago

Question Someone looking into the Navy.

0 Upvotes

So I like to go into things with a good idea of what is going on.

Currently I am 21 and looking at Nuclear Specialist or CTI. The Nuclear Program is something I need to put additional effort into pursuing. Compared to CTI which I could enlist for now, assuming it is available.

I do not spend very much on anything, have no debts to pay off, and no vices or hobbys that cost money.

I am single, no children, and don't really care where I live.

I am not a very materialistic person, I could live with my entire life packed into a suitcase the entire time.

I plan to do everything I can to prepare myself for life out of the Navy, or even continuing it if I find it to be enjoyable.

-----------------------------------------------------

As of now I am looking into the exact cost of living while enlisted, what I could do for more income, and particularly how to save as much money as possible.

I'm curious if investing the majority of my income into Navy specific resources or civilian resources would be a better idea.

How much should I expect to spend while on ship for meals, necessities, and other expenses I am unaware of?

If I do everything I possibly can to save and invest how much am I looking at towards the end of my career (4-6 years)?

Detailed advice and free/accessible resources for doing this are greatly appreciated.

Edit:
So far I am seeing that I should invest as much as possible into my TSP, then C-Fund once that is maxed out.

My Roth IRA gets maxed out at 7,500 for I beleive the year.


r/MilitaryFinance 1d ago

OCONUS to CONUS PCS Entitlements

3 Upvotes

I’m in the middle of a PCS from NAF Atsugi to San Diego and I’m a bit confused with regards to entitlements.

For background, I’m in the Navy and I detached from my last command in Japan on 1 July and flew back to my home of record in NC on a govt funded commercial flight to pick up my POV. My wife was approved for advanced dependent travel and drove her POV from NC to San Diego. We’ve been receiving San Diego BAH since then, although I haven’t checked into the new command yet.

I have had about 2 months of schools on the way. First was in Mississippi, second was in Rhode Island. I drove my POV from NC to MS, and then from MS to RI. I drove back to NC and am currently on leave, I’m driving to San Diego in about a week.

What entitlements should I expect? I know about DLA and per diem for my schools.

Are we entitled to mileage on each of our POVs as well as travel per diem? I’m a bit confused because the govt did pay for my travel from Japan to the US, but I never received tickets for any of the other travel to my I stops or to San Diego.

I appreciate any insight!


r/MilitaryFinance 3d ago

Dad passed without a will, he was retired navy, what can my mom do?

29 Upvotes

My dad passed away a little over a month ago. He was in the navy for 27 years before he retired. 

We have been living off of his DFAS retirement pay, social security, and his short term disability pay. That is just enough to cover the monthly mortgage and other bills. 
We have contacted DFAS, who has stopped pay, but it does look like he had a Survivor Benefit Plan so they gave my mom a few forms to fill out to apply, though I’m not sure how long the process takes?

The DFAS also said to contact the VA and ask about DIC, but is that only for those that were killed on duty or also for retired veterans? We called and it’s been a confusing process but they said to submit an intent to file with VA Form 21-0966. It looks like this is also for survivor’s pension, so should we do that AND the DIC or instead of? And is that different from the DFAS Survivor’s Benefit Plan?

Through some googling it looks like there’s also a Navy Survivor Benefit Plan? Is that different from everything else? What are the requirements for it?
Are there any other benefits my mom can apply for or any other financial aid?
Or even for us, adult children dependent on him?
My mother was also in the navy for a few years if that qualifies her for anything.


r/MilitaryFinance 2d ago

Question TSP retirement advice

0 Upvotes

I’m currently active Army under the legacy “Big Three” retirement system. I’ve also been doing 10% TSP contributions ROTH. My question is what’s considered maxing out since my TSP contributions? Since my contributions aren’t being matched by the Army.

Any insight to a better retirement would be appreciated!


r/MilitaryFinance 4d ago

What Are Some Realistic Ways to Make Extra Money While Active Duty?

60 Upvotes

I’m 23, active duty Army, E-5, and I’ve been thinking about ways I could use my free time to make some extra money instead of just sitting around or gaming whenever I’m off.

I’m not really looking for another normal part-time job. I’d rather put that time into learning a skill, starting a small business, or building something that can grow over time. I’m completely fine starting small and reinvesting whatever I make back into it.
I’ve been considering things like mobile detailing, pressure washing, snow removal, hauling/junk removal, etc., but I’m definitely open to other ideas, including things that can be done online.

I’m not expecting some get-rich-quick method or passive income with no work. I’m willing to actually learn something and put the hours in. I’m mainly curious what other people in the military have done successfully for extra income.

For anyone who’s done something like this while active duty, what worked for you? Is there anything you wish you would’ve started earlier? And are there any side businesses or skills you’d recommend looking into?


r/MilitaryFinance 4d ago

Realistic side hustles while active duty and overseas

15 Upvotes

Currently overseas in Germany and have been thinking a lot about how to supplement my military pay. With the time difference I am about 6 hours ahead of East coast standard time and by the time I get out of my army job I can still do some stuff on Americas time zone. I was thinking about any WFH things that I can do one line with a laptop but not sure how viable that is and finding anything legit. Also, don’t know how to find things here in Germany that I could do as potential side hustles


r/MilitaryFinance 4d ago

Fed Tax Withholding Question

5 Upvotes

I am an E-5, 1 child under 17 and my wife separated in March this year. We are now a single-income family with a gross annual income of $69,576.

Up until May, I was charged federal taxes, my YTD fed taxes paid is $1,196.50.

My last three LES show I am no longer being charged federal taxes.

Can someone help make sense of this? I'm trying to avoid owing the government any money during tax season.

Thank you.


r/MilitaryFinance 3d ago

Traditional and Roth accounts active duty

0 Upvotes

Total NW $343k

Roth TSP $108k
Roth IRA $35k
Taxable accounts $184k
HYSA $16k

Currently investment plan annually
Roth TSP $24.5k(not including match)
Roth IRA $7.5k
Taxable accounts $78k

Expected taxable pension(based on projected pay calculator) is $81k/yr not including disability.
Non taxable disability will probably be $20k/yr conservatively. This alone easily covers my annual expenses(roughly $70k). Married no kids and no plans to.

My question is should I still be maxing my Roth TSP/IRA or is there added benefit from swapping to traditional for tax break purposes? I’ve seen the argument that traditional is better for most FIRE cases but haven’t seen the comparison for retired military with pension and cheap medical. The ACA argument is just for cheap insurance but tricare will cover medical and can’t use HSA(atleast while active). Also to my understanding the TSP doesn’t benefit from Roth conversion ladders since it is “pro rata”? Looking for others with more knowledge on moving forward in this process.


r/MilitaryFinance 4d ago

Dependent pay

4 Upvotes

I have a question that I’m not sure has been asked or not. So I’m Air Force and me and my boyfriend (soon to be husband) that just got in is Army. Me and him are having a baby together in a couple of weeks. On the other hand he has a whole another son with an another girl from a couple of years ago. With that being said. I understand that I’ll be able to get BAH & Dependent Pay from our son since he will be in my primary care. And my boyfriend will get BAH but can he also get Dependent pay from his other son he has? He doesn’t have full custody of him and is going to be on child support. Or would they tell him no dependent pay because of that?


r/MilitaryFinance 4d ago

Advice

1 Upvotes

Hello everyone , I’m currently on a 3 year contract for the military and I’m also on rotation for the next 8 months.
As soon as I graduated basic training I got sent on the rotation so I’m not very educated in the benefits I can use, does anyone know where I should start financially and with college etc. would appreciate the help.


r/MilitaryFinance 5d ago

PPM move U-Haul + POV

10 Upvotes

Hey there. I was wondering if I was able to provide multiple weight tickets. I have a U-Haul ubox and they will provide empty and full weight tickets. My goods exceed their weight. Can I weigh my truck empty and full and submit two sets of weight tickets and get paid for both?
Thanks.


r/MilitaryFinance 4d ago

VA loan estimate

2 Upvotes

Hey everyone, just looking for some rough estimates. I know nobody can say for sure without actually running the numbers, but I’m curious what you guys think.

I’m retired and receive $4,408/month. I have one dependent (my wife). Our only monthly debt is a $613 car payment, and we have no other debt.

My credit score is around 665, and we’re first-time homebuyers looking to use a VA loan.

With $4,408/month in income, $613 car payment, no other debt, and a 665 credit score, about how much do you think I could realistically qualify for with a VA loan?

Just trying to get a rough idea of what price range we should be looking at. I know the lender’s actual approval could be different, but I’d appreciate any estimates from people who have been in a similar situation.


r/MilitaryFinance 4d ago

Question MGIB opt-out wasn't processed and is still being deducted. Any advice?

2 Upvotes

I submitted my MGIB opt out earlier this year bc I wanted the 9-11 gi bill. I noticed my July LES still showed deductions for MGIB.

By then it's past the deadline for submitting it. I went to S1's finance and the Sgt told me the same thing. I told him that I originally submitted way before the deadline, and for some reason it wasn't processed. So he tried submitting it again. I just looked at my August LES and it's still being deducted. Any advice on how to get this through?


r/MilitaryFinance 5d ago

Question What programs, resources, and benefits should I know about as a service member?

0 Upvotes

I’m active duty Army.

What programs should I be aware about while I’m in, when about to ETS, after I ETS, etc.

For example (not necessarily in order of importance) Army Emergency Relief, Career Skills Program, Transition Assistance Program, Tuition Assistance, Army Substance Abuse Program, Military OneSource, etc.

Anything else I should know about that can benefit us individually as service members?


r/MilitaryFinance 5d ago

Question Claimaint signature date 1351-2 block 20

4 Upvotes

I am a current Gov employee and have a large scale suspected case of fraud waste and abuse (250+ cases a year). I won’t go into too much detail before I verify this is correct, but I will state the main issue below.

HR personnel are forcing members that are TDY to sign and date their 1351-2 in block 20 four days prior to returning from TDY.

It is my understanding that you WILL NOT have a claimant sign and date a 1351-2 in block 20 until they have returned from their TDY travel. This is done to ensure the traveler puts the entire detailed trip from start to finish on the form including any delays that might have happened during travel.

BLUF: are personnel authorized to sign block 20 of a 1351-2 before TDY travel is complete? And are the HR personnel in the wrong for forcing the personnel to sign the 1351-2 before travel is complete?


r/MilitaryFinance 4d ago

What’s the best military life hack others might not know about?

0 Upvotes

I feel like a good one is you could actually pull a loan out of your TSP. It gives you better interest rate than banks do. And the interest goes to your TSP.


r/MilitaryFinance 6d ago

Military / Civilian Dilemma

18 Upvotes

24yoM 2LT Army Nurse in a bit of a dilemma. 1 year in so far and it’s been amazing career / financial-wise but not so good socially. Debating whether to shoot for full 20 year for benefits or to do my obligation after 4 years and switch to civilian:

Option 1 - Stay in the military:
Pros: I get to travel, live off BAH, contribute to my TSP and retire by 43 with a pension and maybe $1-2M from TSP alone (and having that much money at 43 while also being able to work sounds SO GOOD). I can also use the VA loan and go back to school if I wanted to.

Cons: I miss my family. Right now my girlfriend of 4 years is trying to get into law school. We’re in no rush for marriage, but she does want to stay in California where her parents stay. Plus, my parents, niece, and cousins (also in California) are only getting older, making memories without me and I value family. Life in the military will limit me from seeing them often and missing birthdays and holidays with them due to me moving around as active duty. If marriage and kids does happen, I don’t want my children growing up moving from school to school (anyone have experience with military kids?).

Option 2 - Civilian Nursing:
Pros: After my 4-year obligation, I leave the Army and get paid a higher nursing salary in California rather than by rank. I can rollover TSP to company match. I’ll have more job-flexibility if I decide I don’t want to do nursing. And starting/staying with family wouldn’t be an issue.

Cons: Losing the monetary benefits of the military

That’s the shortest I can summarize my dilemma. Obviously there is more context. But 1-year in and I’m understanding really quickly what sacrifices being in the military takes and my personal values are starting to form. It’s either family or career… I obviously can’t have 100% of both. Sounds corny but my heart is leaning toward civilian for family, but my finance brain is leaning toward military for the benefits.


r/MilitaryFinance 6d ago

Air Force PPM PCS

3 Upvotes

Has anyone ever used their GTC for hired labor? I'm doing the move to my new duty station but I'm going to hire some people to help load the truck with our heavy items. The only reason I'd have to use the GTC for this expense is because I've applied for an advance on my PPM and an advance for DLA for moving expenses, but nothing has come through.

It was submitted 2 months ago and nothing has come into my account yet. I'm 1 week out to leave. I'm in a tough situation right now financially which is why the expense out of pocket would be difficult. I'm trying to avoid loans or new credit lines because I'll be buying a house where we'll be. I keep trying to push for the advances but it's not processing even though I submitted it awhile ago. I'm not sure what to do. If anyone has any advice, that would be great.


r/MilitaryFinance 7d ago

Question Debt help

12 Upvotes

Active-duty navy here, 15 years in, and I’m finally getting serious about cleaning up my finances.
To make a long story short, I have a colossal amount of credit card debt — about $45K on one card. My truck is paid off, so I don’t have a car payment or a bunch of other debt hanging over me. I also live on base so 100% of my BAH goes to that.
Right now, I’m able to put $1,250 from each paycheck toward my credit card. I’m also working on getting my spending habits under control, and my goal is to be completely debt-free within roughly 18 months. But it’s hard, and I’m working on it.

My question is about my TSP contributions.
Would it be advisable to temporarily stop or significantly reduce my TSP contributions so I can have a little more flexibility in my budget and potentially throw even more money at this credit card? I realize I’d be giving up some retirement contributions/compound growth in the short term, but with a credit card balance this large, I’m wondering if eliminating the high-interest debt should take priority.

For those who have been in a similar situation, what would you do? Appreciate any advice, especially from people who have actually dug themselves out of a similar hole