The easiest financial strategy for the military

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Doing something for the first time is scary. But that’s just because it’s new. In this episode of From Military to Millionaire, David discusses how you can use your time in service to building your overall wealth.

The first step

The first step is critical to building wealth: paying off your high-interest debt. Put every dollar you can into paying off one loan, then move on and on until all your debts are paid off.

Second step

Use the Thrift Savings Plan (TSP) in an automated way. Contribute money through an investment plan that makes sense for you and your goals and leave it there. A light savings strategy is to put 10% of your base salary into your TSP with every paycheck. The government will match five percent, so you’ll save a total of 15%.

Third step

On top of that, put an extra 10% into a savings account with every paycheck. After your first term, you will have a decent amount of savings and a good start for a compound retirement fund.

By following this strategy during your first four years of service, you become a millionaire at retirement age.

Want to know more?

David Pere is a former active duty Marine who is on a mission to educate the military community about financial preparedness. Most people hear the term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without much effort. He teaches personal finance and real estate investing to service members to help them increase their savings and increase their chances of achieving financial freedom.

Want to know more about Father? Check out the Military to Millionaire website and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No BS Guide to Military Life here.

Looking for other ways to be financially strong? Check out what’s new on our Mighty Money page.

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