Top 4 Financial Mistakes Service-Members Make
There are so many things I wish I had known before joining the military. Like you should find an outlet to channel your frustrations… or simply, that you can buy hair gel in bulk (who knew).
I made mistakes that many people did (if not, just humor me). I wasn’t used to having a stable amount of money in my bank account. Many young whippersnappers in the service feel a level of confidence they aren’t used to walking around with a piece of plastic in their wallets.
To be fair here, I had a TSP (Thrift Savings Plan, its like an IRA) from the start. In boot camp, you’re taught about saving money. You know, when you’re exhausted, drained, can’t breathe from how straight you’re sitting up, and your mind is on everything but money. Every few months we had briefs on fiscal responsibility, but I can’t even describe one, so I imagine they’ve made no impact on the masses.
Here are some of the most mistakes and how to avoid them during your time defending the good ‘ol U S of A.
Don’t Buy a Brand-New Camaro
You may have a steady paycheck right now. It feels powerful. It feels secure. It’s tempting to finance something pretty and expensive. Don’t. The salespeople know that new Marine smell, and what haircut to look out for. They easily take advantage of the naïveté.
It isn’t just so much about how much a monthly payment you can afford. With interest, you have to consider how much you’re paying in the long run. Sure, it’s $35,000, but if you aren’t careful with interest you can end up paying more than double - or worse.
You also have to keep in mind insurance costs and what would happen if anything should happen on the road to the pretty new thing. Plus gas and general upkeep.
TIP: Cars depreciate in value, meaning when you drive that sick af Camaro off the lot, it immediately becomes LESS VALUABLE THAN IT WAS PARKED BESIDE THE SALES BUILDING ON THE LOT. Insane, right? It’s the truth though.
Courtesy of Dave Ramsey
Look for a 3-5 year old car - that way the car is finished depreciating in value
Make a down payment of at least 20%.
Finance a car for no more than four years
Don’t let your total monthly vehicle expense, including principal, interest and insurance, exceed 10% of your gross income - DO NOT PURCHASE SOMETHING THAT IS HALF OF YOUR YEARLY TAKE HOME PAY
2. Your Uniform Items Are Cumulative
The amount of times I had to run to the store for a random uniform item because I lost one, I forgot I needed to replace them, or I forgot them somewhere was asinine.
TIP: Buy a few uniform items at a time and keep them in a safe place. It’s kind of like buying a café mocha double shot no foam every day. Sure, it’s just $4 then… but it’s $4 built up over time.
3. BOOZE
Time to get real. Most civilians have this idealistic viewpoint of what a Marine (or another branch, I guess) is. They picture this noble, strong, do-good figure. It’s not that that image is wrong, it’s that there’s another side.
I did not know very many colleagues with healthy drinking habits. I did not have healthy drinking habits.It can be a lonely world, and many of us were dealing with deep seated emotional problems we had no outlet for. Alcohol was an accessible crutch.
I asked a Staff Sergeant his thoughts, and he echoed this idea, saying how he would spend $400 a week on booze to numb issues he had.
I remember I would go through an entire bottle of wine a night instead of just going to fucking therapy.
This may shock you, but the Marine Corps is full of toxic masculinity - with a narrative of: Shut the fuck up, put your head down, and finish the job… otherwise you’re worthless.
There’s an undeniable culture that disincentives seeking help or healthy coping mechanisms. So, booze it is. I’m not even going to get into the physiological consequences of the binge drinking, but I spent a lot of money on whiskey, beer and going out to bars.
TIP: Set a budget and stick to it. Also, probably talk about your feelings.
4. Marriage. Yup. Marriage.
Bet y’all didn’t think I was going to go there. But here we are.
The military really incentivizes marriage.
If you’re a barracks Marine, your time is deemed less valuable, because you don’t have a family to get back to. therefore, you’re far more likely to be stuck at work doing things for longer periods of time.
Being in the barracks sucks.
You have Field Day. The infrastructure is falling apart. One time, my roommate screamed so loudly in the shower that I thought Norman Bates showed up. The source of the terror? A cockroach crawled out of the drain.
I give it 1 out of 5 stars.
To add to that, if you get married, you’re paid more.
They give you money so you can live in an apartment or a house. It’s called BAH. You get health insurance called Tri Care. You qualify for loans with rock bottom interest rates. You have access to better scholarships. The money aspect of marrying in the military is pretty damn great.
With all of those factors, It’s hard to not want to jump onto that bandwagon.
“Katie, are you telling me that Marines only get married for the money?”
No, I’m not. People get married for all sorts of reasons. I’m saying that on the surface it seems like a samrt idea. Many Marines find someone they can tolerate, and jump into a contract.
At first, it’s probably great. As my Staff Sergeant friend said, “Dependents may like BAH and BAS up front, but rent and having to deal with someone as emotionally immature as you? That comes with associated costs.” He’s right. See mistake #3.
TIP: Wait a bit before you sign that marriage contract. Make sure you’re entering (what is supposed to be) a life-long commitment for the right reasons. Getting married costs money. Getting a divorce? Way more expensive.
Unfortunately, the military doesn’t make watching out for the above easy. It’s a draining job, both physically and mentally.
For emotionally immature men and women facing their own mortality while trying to figure out how to navigate a system that enforces its task management like “an abusive father: erratically and full of double standards,” it’s sometimes impossible to make the right decisions.
As my Staff Sergeant puts it: You have resources at your disposal.
Every base has a financial advisor. Go find them and also find your humility somewhere in the bottom of your pack - because they’re going to give you a reality check.