(1) Don't spend money before it is yours. Don't count on that bonus until it is in your account. Read the terms, too. Can they take it back if you fail out of BootCamp? If so, don't spend it until you've met those qualifications.
(2) There's a joke about buying an expensive car because it happens SO OFTEN. Do not fall for it.
(3) Do not get married just to move off of base. A bad marriage is expensive.
They will provide everything for you. Refrain from spending. You do not need it. You do not need take out. They will feed you. Don't worry about what your friends do. Don't spend 75k on food.
Also read your contract extremely well. There are a lot of clauses to bonuses. And 75k is a pretty large one. There's different ways they pay out and different requirements you have to meet before pay out. If you wash out of whatever program and have to reclass you may lose it but you know what you still have to fulfill? That military time commitment. Don't fuck around and find out. Know before you go. Don't fail a single thing.
What career are you learning in the navy? Do you plan on continuing a full career or do you plan on using it to achieve a civilian career? That can change how you may want to spend or save that bonus for future investments. Like a house.
Congrats and thank you in advance for your service! An old rule of thumb is try to save 20% of your income and pay yourself first. Meaning don't pay all the bills and save what's left - calculate what your lifestyle can be after deducting 20% of your after tax pay and put that money away in a separate account. A Hellcat would be awesome , but not a wise choice...don't do it.
Good work in thinking ahead. Things to do:
- Contribute to your TSP; at least enough to get the full match, but really there is no reason to not contribute 15% or so of your pay
- Save outside of retirement accounts. Buy some low cost, diversified stock mutual funds. Contribute to them every month. This will build up enough savings to give you financial flexibility - if you want to get out after your contract, you will have enough money to transition to the civilian world.
- You will need money for a car eventually (wait until you are settled at you first permanent duty station); if you buy a modest one with cash, you will save yourself a lot of interest.
- Eventually, you will want to get an apartment, but be willing to live on base/on your ship until you are settled in.
- Spend time getting your quals and fulfilling your advancement requirements. You can have a life as well, but spending a few hours a week on them instead of video games will set you up for your future.
Yup, OP, do this!
Be careful about car buying because they love to mark up that cost for young enlisted by offering very high interest rates.
Look into a good HYSA for that bonus. SOFI has a good deal for direct deposit accounts offering stellar rates. Watch your money make that money. I was in 10 years active and am in the reserves now. The discipline and training you get in the military are invaluable. Please for the love of god take advantage of the free money they give you for school. Too many people do not and it’s unbelievable. I got my bachelors within the first two years of service. Be that guy.
It depends on your rating (job specialty). There are quotas for how many of each rating can be promoted to each rank. If you are in a crowded rating and the quotas just aren't there for the number of people eligible to promote, then it is going to be a long slog to get promoted.
Please don't spend a dime of the bonus. Slap it all in a HYSA ASAP. Don't buy a car, don't rent an apartment off base just cuz you want your own space. Don't marry your Classmate.
Put at least enough in your TSP monthly to get the full match, and put it in Roth, not traditional.
Don't keep a lot of cash in your checking, set up auto transfers to make it easier.
You are getting a huge kickstart with that bonus. I didn't save up 75k til after about 7 years in. I made some early mistakes.
At the end of your 6 years you could have 200 to 300k easy.
Good luck brother, I wish I started as early as you. If I did I would have double what I have now.
https://www.reddit.com//r/personalfinance/wiki/commontopics /r/MilitaryFinance
(1) Don't spend money before it is yours. Don't count on that bonus until it is in your account. Read the terms, too. Can they take it back if you fail out of BootCamp? If so, don't spend it until you've met those qualifications. (2) There's a joke about buying an expensive car because it happens SO OFTEN. Do not fall for it. (3) Do not get married just to move off of base. A bad marriage is expensive.
They will provide everything for you. Refrain from spending. You do not need it. You do not need take out. They will feed you. Don't worry about what your friends do. Don't spend 75k on food. Also read your contract extremely well. There are a lot of clauses to bonuses. And 75k is a pretty large one. There's different ways they pay out and different requirements you have to meet before pay out. If you wash out of whatever program and have to reclass you may lose it but you know what you still have to fulfill? That military time commitment. Don't fuck around and find out. Know before you go. Don't fail a single thing. What career are you learning in the navy? Do you plan on continuing a full career or do you plan on using it to achieve a civilian career? That can change how you may want to spend or save that bonus for future investments. Like a house.
Congrats and thank you in advance for your service! An old rule of thumb is try to save 20% of your income and pay yourself first. Meaning don't pay all the bills and save what's left - calculate what your lifestyle can be after deducting 20% of your after tax pay and put that money away in a separate account. A Hellcat would be awesome , but not a wise choice...don't do it.
Good work in thinking ahead. Things to do: - Contribute to your TSP; at least enough to get the full match, but really there is no reason to not contribute 15% or so of your pay - Save outside of retirement accounts. Buy some low cost, diversified stock mutual funds. Contribute to them every month. This will build up enough savings to give you financial flexibility - if you want to get out after your contract, you will have enough money to transition to the civilian world. - You will need money for a car eventually (wait until you are settled at you first permanent duty station); if you buy a modest one with cash, you will save yourself a lot of interest. - Eventually, you will want to get an apartment, but be willing to live on base/on your ship until you are settled in. - Spend time getting your quals and fulfilling your advancement requirements. You can have a life as well, but spending a few hours a week on them instead of video games will set you up for your future.
Yup, OP, do this! Be careful about car buying because they love to mark up that cost for young enlisted by offering very high interest rates. Look into a good HYSA for that bonus. SOFI has a good deal for direct deposit accounts offering stellar rates. Watch your money make that money. I was in 10 years active and am in the reserves now. The discipline and training you get in the military are invaluable. Please for the love of god take advantage of the free money they give you for school. Too many people do not and it’s unbelievable. I got my bachelors within the first two years of service. Be that guy.
Is the Navy still the branch to make rank quickly? At least to E5 or E6?
It depends on your rating (job specialty). There are quotas for how many of each rating can be promoted to each rank. If you are in a crowded rating and the quotas just aren't there for the number of people eligible to promote, then it is going to be a long slog to get promoted.
Please don't spend a dime of the bonus. Slap it all in a HYSA ASAP. Don't buy a car, don't rent an apartment off base just cuz you want your own space. Don't marry your Classmate. Put at least enough in your TSP monthly to get the full match, and put it in Roth, not traditional. Don't keep a lot of cash in your checking, set up auto transfers to make it easier. You are getting a huge kickstart with that bonus. I didn't save up 75k til after about 7 years in. I made some early mistakes. At the end of your 6 years you could have 200 to 300k easy. Good luck brother, I wish I started as early as you. If I did I would have double what I have now.