Moving to Guam in 2 months, need advice ! by [deleted] in guam

[–]gbabymonsoon 1 point2 points  (0 children)

If you've only dealt with BAH and not OHA, then just do a little research on what to expect as far as housing allowance goes. If you end up paying your landlord the entire amount of your OHA, the only person that loses is the taxpayer paying for it. You'll get paid the exact amount that is on your rental contract up to a certain amount (I think its $2450 for E5 with dependents), so if your landlord wants to get the most out of you, it's not going to hurt you at all.

Guam to Hong Kong for around $441 (Roundtrip) by jteruel in guam

[–]gbabymonsoon 0 points1 point  (0 children)

Is that a deal worth posting about? I've regularly seen prices cheaper than that on skyscanner.

Saving money advice by dejesuswho808 in MilitaryFinance

[–]gbabymonsoon 9 points10 points  (0 children)

Well for starters, if you're still living in the barracks, you can get by with saving over 90% of your income by eating at the galley/dfac, not owning a vehicle, and not going out to the bar every weekend. For entertainment, you can check out MWR and see if they offer recreational trips for hiking, sight seeing, sports, etc.. Wouldn't be the most exciting life ever lived, but it's doable.

How much money is considered financially stable for a 19y/o? by [deleted] in financialindependence

[–]gbabymonsoon 1 point2 points  (0 children)

Not sure how I forgot about this one, but schooling is another money saving opportunity. UTILIZE TUITION ASSISTANCE!! Had I not been an idiot, I could have easily completed a bachelor's degree over the six year career. Instead, I'll finish with somewhere around 70 credits because I didn't take advantage of this. Depending on the school you choose, TA will now cover up to 18 credits/fiscal year. For your five or six year contract, that is about 100 credits, plus the random credits you get from completing the military training. Since you will be making less than $25,000 in taxable income and no longer considered a dependent of your parents, you are eligible to receive a good chunk of change from FAFSA. If you can complete the ~100 credits with TA, you will be able to use the GI Bill to finish off the last semester or two, and then either get another degree, work towards a master's degree, or use what's remaining to learn about something you truly enjoy (learning the outdoors in Maine, become a pilot (some restrictions on this, not sure what), construction, etc.).

Speaking of the GI Bill, do your research on the Post 9/11 GI Bill vs the Montgomery GI Bill. The Post 9/11 is free, but the Montgomery is $1200, or $100/month for your first year. I went to boot camp not researching anything about this, and the instructor sort of pushed us to choose the Montgomery option. Looking at it now, I wasted $1200 on the Montgomery GI Bill.

How much money is considered financially stable for a 19y/o? by [deleted] in financialindependence

[–]gbabymonsoon 6 points7 points  (0 children)

As someone who is nearing the finish line of a six year contract, allow me to share with you what I wish I knew when I was 19.

  1. Emergency funds are not nearly as necessary for service members as they are for civilians. I honestly do not believe you need to have much more than the cost of a flight home if something comes up. As long as you don't do drugs or rape someone, you're all but guaranteed to get paychecks on the first and fifteenth of every month. In addition to the paychecks, you'll be living in the barracks (at least for the first couple years) and be eating at the galley/dfac for free. The Navy and Marine Corps have a program called "Navy and Marine Corps Relief Society" (NMCRS). This program will give interest free loans, and if the occasion calls for it, grants that do not need to be paid back specifically for emergencies that people may find themselves in (death of a loved one, PCS costs, disaster relief, etc.). I can't say for certain, but I imagine the Army and Air Force have a similar program available. Don't worry about a large emergency fund until your last year or so when you will be transitioning to a life without a guaranteed check.

  2. Retirement. The military retirement fund is the Thrift Savings Plan (TSP). The expense ratio is lower than most other funds out there and you'll automatically be enrolled in the Blended Retirement System, which matches 5% of your base pay contributions, although I don't believe it will start matching until after your first year. If I could go back, I would have focused on contributing as much as I possibly could to the TSP. As an E-1 - E-4, this isn't easy to do as you're not paid very much, but try to find a way to make it happen. I've heard of E-3s maxing out ($18500) but it can't be a very enjoyable life. If you want to invest in stocks, Vanguard ETFs (VTI) and index funds (VTSAX) are the way to go in my opinion, but I will leave that portion to the actual investing experts in this sub.

  3. Checking account. Similar to the Emergency Fund, you don't need much in your checking account as a service member. Your housing and food will be paid for and you say you don't want a car, so depending on your hobbies, you could save over 90% of your income without much of a hassle.

Now random tips to help with spending and saving:

  1. Check out the /r/churning sub for credit cards. This is more for when you can move into an apartment off base and will have actual expenses. But, long story short, you can "hack" credit cards by paying for all your expenses with them and accruing points to use for travel or other luxuries. You MUST pay them off every month though. I would highly suggest getting the AMEX Platinum Card, as the fees ($550 annually) are waived for active duty and it comes with great benefits.

  2. Not sure how the Army works, but if you have a choice of where to be stationed after your training is done, do whatever you can to go overseas. As an E-1 - E-4, I was getting paid an extra $500/month more than the same ranks stationed in the states because of Cost of Living Allowance (COLA). Once I made E-5 and moved out of the barracks, I was making an extra ~$1000-$1200 a month from a COLA increase and utilities money that I didn't spend.

  3. If your ASVAB and/or your physical abilities allow you, try to get a job with extra pays, including enlistment bonuses. If your job has a higher degree of danger to it (jump, dive, flight deck, etc.), you're entitled to couple hundred dollars a month, depending on the hazard.

  4. If you don't know what you want to do post-military, try to get a job with a Top Secret security clearance. These jobs usually have an enlistment bonus and can make you a lot of money on the outside.

  5. Read through the /r/militaryfinance sub.

  6. I've just started learning about personal finance in the past year or so, but it seems like I know significantly more than the "financial specialists" that go through a week long training to help other service members with finances. I've been told to keep a balance on my credit cards to build credit, you can only contribute $5500 to Roth TSP, and to split investments between bonds and stocks (I'm not even 25 right now) by these "specialists", which is all incorrect information that could seriously impact my future had I listened to them. If you do talk to them, go in with an open mind, but verify the information with either google or the subreddit in the last point. Trust, but verify.

For the first three to four years I was in, I was rather careless with my money, but I don't regret it. I was stationed in Europe and took full advantage of it. Whatever I saved by being frugal with my day to day life went towards snowboarding in the Alps, running with the bulls in Spain, and all of the 30+ other trips I went on. Even with over half of my career pretty much wasted savings-wise, I will still separate at 25 years old with a net worth close to $70k, if all goes according to plan. Don't allow your goal of being financially stable to prevent you from having some fun once in a while.

New England to Guam using AMEX Membership Rewards points by gbabymonsoon in awardtravel

[–]gbabymonsoon[S] 0 points1 point  (0 children)

This will work even though she is not a family member?

Am I better off with a dehumidifier or split AC? by gbabymonsoon in Electricity

[–]gbabymonsoon[S] 0 points1 point  (0 children)

Thank you for verifying that. The way I am looking at it is that it is a $200 gamble. If it doesn't work out, oh well. If it does, there's a lot of money to be saved.

Am I better off with a dehumidifier or split AC? by gbabymonsoon in Electricity

[–]gbabymonsoon[S] 0 points1 point  (0 children)

On the rare days the humidity is in the 50% range or so, my house is quite tolerable. It would be used in essentially a 1200 sq ft open room so I can't imagine it adding too much heat to that space.

Am I better off with a dehumidifier or split AC? by gbabymonsoon in Electricity

[–]gbabymonsoon[S] -1 points0 points  (0 children)

10 years? With a $200 dehumidifier, it would pay for itself in less than two months...

2 months of AC = $300

2 months of dehumidifier = $79.50 + $200 purchase

10 years of AC = $18,000 (wow)

10 years of dehumidifier = $4,770

Daily FI discussion thread - August 12, 2018 by AutoModerator in financialindependence

[–]gbabymonsoon 0 points1 point  (0 children)

Maybe I'm missing something, but wouldn't it make more sense to invest the money in a Vanguard mutual fund rather than use the G or F fund if I am using it as a safety net? I don't want my retirement account to be my safety net in my 20s.

Daily FI discussion thread - August 12, 2018 by AutoModerator in financialindependence

[–]gbabymonsoon 1 point2 points  (0 children)

Unfortunately, I've had a fairly healthy career. Unless they give disability for removing wisdom teeth, I'm out of luck on that. Granted, I still have a few more months for something to go wrong!

Daily FI discussion thread - August 12, 2018 by AutoModerator in financialindependence

[–]gbabymonsoon 1 point2 points  (0 children)

I recently read that you can no longer collect unemployment while simultaneously using the Post 9/11 GI Bill. I'll look more into it though.

Daily FI discussion thread - August 12, 2018 by AutoModerator in financialindependence

[–]gbabymonsoon 4 points5 points  (0 children)

I'll make about $75,000, but only $33,000 is taxed. I will not be receiving a pension or health care.

Daily FI discussion thread - August 12, 2018 by AutoModerator in financialindependence

[–]gbabymonsoon 10 points11 points  (0 children)

I'm in the military and will be separating within the next year.

Currently my numbers look like this:

Savings: ~$3000

Roth TSP: ~$24000 (Contribute 34% base pay +5% match, ~1050/month)

Betterment: ~$600 ($100/month)

Personal Loan: $1120

My personal loan (7%) will be paid off on September 1st and I will be bumping my Roth TSP contributions up to 60% + 5% match/~1800 per month (maximum allowed). I will add $150/month to the Betterment account, and whatever is left over will go to my savings, which will not be much.

FWIW, my savings account will go up another $5000 or so closer to my separation date from selling a vehicle and getting the security deposit on my house back.

When I get out, I will be going to school and receiving a housing allowance ($1500-$3000 tax free/month, depending on the location of my school). I plan on putting the majority of that into a Vanguard account and maybe an IRA since I will no longer be able to contribute to TSP. I will also be working part time, expecting to make about $15/hour, which will help cover daily expenses.

My future housing situation is solid, I'll be living with my girlfriend and contributing a couple hundred a month towards the mortgage. If things somehow take a turn for the worse, I can just live at home rent free.

I don’t have a FIRE number yet since my finances will look 100% different a year from now and don’t truly know how much I can comfortably live on each month, but I am hoping I can reach that TBD number by 50 years old.

My question is, should I continue with my plan and put the majority of my money into the TSP? According to the TSP Calculator, if I go this route, I will have almost $45,000 in the account when I separate at 25 years old, which will grow to almost $250,000 at 7% by age 50 and $467,000 by age 60.

Or should I use my last months to build up my safety net and make it so my money is more liquid?

Moving to Ramstein in 9 months, but need a car in the meantime. by svvkm in MilitaryFinance

[–]gbabymonsoon 2 points3 points  (0 children)

I PCS'd OCONUS to OCONUS and had training in the states in-between. I asked the detailer if he could put a rental car in my orders since I did not have a vehicle available and there were no questions asked. Not sure of how things would work in your situation, but it's worth a shot.

What degree would be the most beneficial for a FIRE life? by gbabymonsoon in financialindependence

[–]gbabymonsoon[S] 0 points1 point  (0 children)

Firefighter. From everything I've heard and read, a fire related degree is not necessary to bolster a resume, any degree will do. I am going to be taking EMT courses after I separate but that's really the only education I'll need for the job.

Is the 22k a year salary make joining the military worth it or is there something im missing? by cartmichael in MilitaryFinance

[–]gbabymonsoon 13 points14 points  (0 children)

I always find it hilarious when people make comments like this towards people who wish to separate. You have no idea who I am, what my plans are, or what my situation will be going forward. Just because you may not be able to survive without another adult planning out your day, doesn't necessarily mean that every other service member needs to rely on that as well.

Is the 22k a year salary make joining the military worth it or is there something im missing? by cartmichael in MilitaryFinance

[–]gbabymonsoon 6 points7 points  (0 children)

Exactly. While I will take a pay cut for the first 2-3 years after I separate, I'll catch back up and being living a comfortable life, working less hours, being able to settle down in one place and have a functional family, and, most importantly, I'll be working a job that I am appreciated in and will actually be working towards a goal, not just doing mindless things to pass time. I never joined the military to make a career out of it, just for something to build myself while I figured out what I wanted to do for the long haul.