It takes a special type of person to embark on a military career. It is challenging and rife with dangers and uncertainties, among other things. For those who serve in the military, one of the unfortunate concerns they face is making ends meet, especially given the increasingly high cost of living. Luckily, there are ways to boost your income and create a comfortable lifestyle for yourself and your loved ones. This post will reveal the top secrets to help you increase your military income and unlock financial freedom.
Budget, Budget, Budget
Like with any other job, you need to learn financial responsibility, budgeting, and not spending more than you earn. As a young person in the military, you may be tempted to spend time drinking with your buddies. But that is an expensive lifestyle. And you can easily blow $100 (or more) in a night. Even, if you are making $20 an hour, that is the equivalent of 5 hours of work! In the military, you may not think about what your “hourly wage” is because you often work all sorts of crazy hours. But if you take your monthly take-home pay and divide it by the number of hours you put in during a week (times 4.3 i.e. the number of weeks in a month), you will get a rough idea of your hourly pay.
Monthly pay / (weekly hours x 4.3) = $/hr
If an Army E1 makes $1,833.30 / mo. and works 40 hours a week, that would be $1,833.30 / (40 x 4.3) = $1,833.30 / 172 = $10.66 + benefits like housing. But if you spend $100 on Friday night, you had to work 9.38 hours (or more than one day) for that Friday night. $100 / $10.66 = 9.38 hrs.
The next time you go out, keep in mind how many hours you have to work to pay for that fun. And then decide if it is really worth it. When you create your budget, it is fine to include recreation in that budget, but when it comes time to spend, don’t exceed the amount that you allocated once the beers start flowing. Learning responsibility, and self-control is one of the major benefits of a military career, and an extension of that is learning fiscal responsibility and self-control when it comes to spending. It can be difficult when your buddies are begging you to go out, or just buy one more beer (or round). But it is an important skill to master if you want any financial security in the future.
Take Advantage of Education Benefits
The military offers numerous educational benefits, including tuition assistance, scholarships, and GI Bill. By enrolling in college courses or pursuing a degree, you can enjoy a salary increase and expand your career opportunities. For instance, certain college courses or degrees can qualify you for advanced promotion opportunities or specialty pay. Plus, studying while you’re serving can help you gain invaluable skills that will come in handy after you leave the military. There’s even an online university for military personnel. With so many options to further your education, you’re sure to find success.
Make the Most of Military Bonus and Incentive Programs
The military offers various monetary incentives to service members, including enlistment bonuses, reenlistment bonuses, and critical skills retention bonuses. These programs are designed to reward military members for their service and hard work, and they can significantly increase your income. As of this writing, the military seems especially desperate to retain good personnel, and so the incentives are truly exceptional.
Take Advantage of Tax Exemptions and Benefits
According to the IRS, Military members enjoy several tax benefits and exemptions, which can significantly reduce their tax burden. For instance, qualifying military members can get free tax preparation services through the Volunteer Income Tax Assistance (VITA) program. You can use the VITA/TCE locator tool to find a site near you.
Other Benefits include:
- Combat pay exclusion
- Non-Taxable Benefits
- Moving Expenses
- Deadline Extensions
- Earned Income Tax Credit ( Special rules)
- ROTC Allowances
- Special Filing Software
Join Professional Organizations and Networks
Joining professional military organizations and networks can provide you with access to exclusive job opportunities, mentorship programs, and leadership development training. These groups are also an excellent source of information and resources on financial management, career development, and personal growth.
Serving in the military is a noble calling that comes with numerous challenges, including financial ones. However, by leveraging the available resources and opportunities, you can enjoy a comfortable and fulfilling life while serving your country. Taking advantage of educational benefits, exploring part-time jobs, and making the most of incentive and tax programs can significantly increase your income and help you secure a brighter future. Joining professional organizations and networks is equally crucial to improving your skills, expanding your network, and advancing your career. So, go ahead and start implementing these tips today, and unlock financial freedom and success in the military.
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