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Financial advice for a young military man.

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Old 11-25-2013, 08:31 AM   #81
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Quote:
Originally Posted by BamaToy1997 View Post
I haven't read everything, but I will chime in with my recommendations.

1. Pay yourself before you pay ANYTHING.

What this means is start NOW for your retirement. You will find it impossible to play catch up later. Take a MINIMUM of 10% of your gross income and place it in whatever retirement fund opportunity you have available (401k, IRA, etc) Then budget your expenses based on what is left over. Make this rule #1!!!

2. When establishing credit, the common thought is to get a small credit card, use it for things like gas only, and pay it off at the end of the month. While this is great for LEARNING to budget, it does not help your actual credit rate as much as people think. Credit score rating is best increased by maintaining about 30% credit debt. So if you have a $300 credit card, maintain about $100 balance at all times. You can then do as you want and buy just gas, then pay down your card each month (including interest) to the average balance of 30%. What this does is brings you into a revolving credit score. It increases that number that everyone worries about. Having a credit card with a zero average monthly balance does little to increase your actual score. This is a very common practice talked about in credit planning to increase your score.

3. As for your savings account. General rule is to calculate out your ENTIRE monthly budget (everything from rent, utilities, gas, insurance, food, entertainment...EVERYTHING). Now take that number and multiply it by 3. This is how much you should have in a savings account at ALL times. This money is NOT to be used for "oh, I want that mod!". This money is for "My pay check didn't get deposited on time, but rent is due." Pay your rent with this money, then when the paycheck DOES get deposited, put the money BACK. This money CAN be used in other emergencies like if your Tacoma breaks down, and you need it for repairs, however you should get this money saved back up as fast as possible.


Those are my 3 biggest suggestions.
In response to:

1)Already there, started back in april, i have two separate accounts, one has about 400 w/ 50$ going into it every month and i recently after returning from basic/AIT with my spare money opened another ROTH ira account with USAA and that has 600$ w/ 100$ going into it every month, when next year rolls around i'll increase the increments to 100$ and 150$/month respectively. My scholarship payed for my school so i have a bit of money to throw around after paying bills and such.

2)As with the credit card, i only use it to pay my internet bill(30$) based on your logic with the 30% i suppose i could buy gas once a month as well and that'll get me around the 100$ mark.

3)When i know for certain what i plan on spending(I will by january) i will do exactly that, take a sum of money and throw it in the ole' savings account.

Thanks for the advice!

Quote:
Originally Posted by toyodajeff View Post
Maybe look into an ira or roth ira, I'm not an expert on them but some have a lot of fees and not much return. When I open one up in a few months I think i will go with vangaurd mutual fund. Also the gov has a small stimulus program for low and middle income you could look into as well.
See above post.
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Old 11-25-2013, 08:49 AM   #82
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Quote:
Originally Posted by ChamYota View Post
In response to:

1)Already there, started back in april, i have two separate accounts, one has about 400 w/ 50$ going into it every month and i recently after returning from basic/AIT with my spare money opened another ROTH ira account with USAA and that has 600$ w/ 100$ going into it every month, when next year rolls around i'll increase the increments to 100$ and 150$/month respectively. My scholarship payed for my school so i have a bit of money to throw around after paying bills and such.

2)As with the credit card, i only use it to pay my internet bill(30$) based on your logic with the 30% i suppose i could buy gas once a month as well and that'll get me around the 100$ mark.

3)When i know for certain what i plan on spending(I will by january) i will do exactly that, take a sum of money and throw it in the ole' savings account.

Thanks for the advice!



See above post.
Just make sure, as far as #1 is concerned, to keep it at a 10% level. That way as your pay increases, your investments ALSO increase, but if you have a bad month, then your 10% matches. ALWAYS keep it at 10% of gross pay. Then, when you finally get married, be sure she does the same.

You mentioned going into the intelligence sector. If that is a true goal, when you DO get married, make sure your future spouse has a good financial background as well. Security clearances for intelligence don't just look at YOU, they look at your FAMILY.
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Old 11-25-2013, 08:57 AM   #83
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Seems like you're already doing this but the more diverse your finicial profile is the better. Invest in more then just one forum of retirement savings.

I don't see the point in not using the credit card for all of your monthly bills that you are already goin to have. For example, I always put my gas, groceries, ect on my credit card. I pay it off in full every month and it is easy to track my spending that way too.
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Old 11-25-2013, 09:02 AM   #84
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Quote:
Originally Posted by BamaToy1997 View Post
Just make sure, as far as #1 is concerned, to keep it at a 10% level. That way as your pay increases, your investments ALSO increase, but if you have a bad month, then your 10% matches. ALWAYS keep it at 10% of gross pay. Then, when you finally get married, be sure she does the same.

You mentioned going into the intelligence sector. If that is a true goal, when you DO get married, make sure your future spouse has a good financial background as well. Security clearances for intelligence don't just look at YOU, they look at your FAMILY.
10% huh. i guess if my income isnt increasing(not yet anyway), i'll just leave things the way they are, dont wanna be going too far into the monies, didnt think about it like that.

My spouse will have good finances, it'll be one of those things that weighs heavily amongst other things of course.
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Old 11-25-2013, 09:03 AM   #85
ChamYota [OP] ChamYota is offline
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Quote:
Originally Posted by PkTaco View Post
Seems like you're already doing this but the more diverse your finicial profile is the better. Invest in more then just one forum of retirement savings.

I don't see the point in not using the credit card for all of your monthly bills that you are already goin to have. For example, I always put my gas, groceries, ect on my credit card. I pay it off in full every month and it is easy to track my spending that way too.
well the card i got only has a 300$ limit on it. I do see what you mean, having it one one card, the debit card i use for college has all my stuff on it and i review it everyday.

My bills will equal close to around 600-700$ after it all said and done
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