Financial Advice requested

The Dude · 09-09-2005, 05:43

Hello everyone.

I was wondering if someone could maybe give me some advice or tell me how they might have dealt with a situation similar to mine.

I'd like to join 20th SF as a REP-63, I'd be looking at maybe leaving early spring or so.

What I've been struggling with is how to afford it. I currently make in the mid 50s. I'm not worried about affording deployments so much, because I know there are some bonus and tax incentives, etc. What worries me is the initial training OSUT, Airborne, SFAS, etc.) and how to overcome that income disparity.

It's not that I'm whining about the pay, it's just that housing in my area is notoriously expensive (DC Metro), so our house payment is a fairly significant part of our monthly budget. I have my first child on the way, and I'd prefer not to lose my house in serving my country. It'd also be a much easier sale to the wife if I could assure her that our financial risk is minimal. Do you guys know of any options I might have, or know other guys that were in a similar situation and how they handled it?

sharkmanII · 09-09-2005, 06:06

You just suck it up and drive on. Every one of us had to start at the bottom and work to get where we are. I know "You can't have your cake and eat it too" is an over used cliche but... . Do you attempt to be a true warrior or do you want to be a "wannabe warrior"? Good luck with your decision.

**Pete** · 09-09-2005, 06:28

Save up, pre-pay where you can, skimp where you must. Dive less, eat in and stay home.

Somebody in training does not need to be worried about the wife and kid.

Without focus you may need to change your dream. With focus you "may" be able to live your dream.

The Dude · 09-09-2005, 06:42

Sure, and I understand all that. I guess what I mean is something along the lines of say, getting something like a home equity loan to cover the difference, and being able to work your normal job enough time to cover it.

That was more along the lines of what I was asking about, not the suck it up focus encouragement. That's great too though.

**Pete** · 09-09-2005, 06:52

Quote:

Originally Posted by The Dude

...I guess what I mean is something along the lines of say, getting something like a home equity loan to cover the difference, and being able to work your normal job enough time to cover it....

Even with no turn-backs the Q course takes a long time. It will be here at Ft Bragg and your family will come with you (I do not recommend that route). Some do better with their family in town, some do not. Some find time for an extra job, some do not. Some who come without their families turn into party animals, some do not.

There is no one size fits all answer. The first item should be stay out of debt and then you work it out from there. Put it on the table and see if your family can make it only on your military pay while you are down here.

The Dude · 09-09-2005, 07:04

Quote:

Originally Posted by Pete

There is no one size fits all answer. The first item should be stay out of debt and then you work it out from there. Put it on the table and see if your family can make it only on your military pay while you are down here.

Yeah, that's what I'm doing at the moment.

I just figured there had to be guys who were in the 20th who a) joined late while having and maintaining established careers and/or b) were good with money.

sharkmanII · 09-09-2005, 07:20

I'm not trying to rain on your parade. I think it's great that you want to be part of "our world". There is always a need for another warrior. Pete had it right with getting the family involved and realizing what the challenges will be. It is not easy, you and the family have to be willing to make a lot of life changes and take some risks with all of your futures, personal and financial. Again good luck with the decision.

jatx · 09-09-2005, 08:16

Go to www.esgr.com for lots of good info. Try to get your employer to provide continued health benefits or your family while you are in training, many have been persuaded to do so. Also, consider switching jobs to an employer recognized by ESGR, you might be able to get some pay differential that way. Just be sure to be honest about your involvement with the Guard upfront, so they don't feel betrayed later.

Consolidate any federal student loans and put them on an income-contingent payment plan.

Good luck.

Archangel · 09-09-2005, 09:42

Quote:

Originally Posted by The Dude

Yeah, that's what I'm doing at the moment.

I just figured there had to be guys who were in the 20th who a) joined late while having and maintaining established careers and/or b) were good with money.

I'm in the 20th & I make about as much as you in my civlian career. I also have a mortgage that is around $1500 & a car payment around $550 (not to mention the other bills associated with those two). You have the advantage of having a wife who has the potential to bring in a second income. I don't. I'm just sucking it up & driving on. There are no secret recipes. It's just how much are you willing to sacrifice to do what you want to do in life.

This calculator may help give you a good idea of what you will make during your service to our country: http://www.ngaaz.org/input_form_ad.aspx

aricbcool · 09-09-2005, 10:30

El Dude,

Do you have a college degree? If so, why not go AD as an Officer?

Not only would you be able to support the family, you could do Army things all the time.

--Aric

The Dude · 09-09-2005, 10:49

Jatx - thanks for that link!

Archangel - you're right. My wife actually makes more than me, it's just that our mortgage payment is much higher. A large part of my motivation for finding information like this is to put her mind at ease about this, since that's what she's most concerned about. I'd like her to be as supportive about this as I can since I've heard that can have a great effect on one's performance at SFAS and the Q course. I personally don't think it's going to be as bad of a hit as she seems to think. Thanks very much for that calculator, although something must be wrong with it at the moment, it keeps getting an error message. I'll check back on it later.

Aricbcool - That's a valid comment and I can only say there are several reasons. One motivation for going in, aside from serving my country in an excellent unit, is to learn new and interesting skills. Everything I've checked about the officer program says that I'd likely lose some of that ability to choose what I do "based on the needs of the army." Everything I've read about the 20th impresses me and there are certain jobs in SF that I'm particularly interested in (like the 18C MOS). Plus, my wife's career is going very well, and I don't want to sidetrack her if I don't have to.

Thanks for the comments everyone. More is always appreciated.

**Kyobanim** · 09-09-2005, 10:53

For the mortgage, try talking to your lender and if you get no joy out of them, there are plenty of others that will be happy to talk options with you. Try contacting a financial planner. They specialize in helping you with your money.

When loans are concerned, there really isn't any easy path, but I'll bet you can find a patriotic/sympathetic company to help you out.

aricbcool · 09-09-2005, 16:52

Quote:

Originally Posted by The Dude

Jatx - thanks for that link!

Aricbcool - That's a valid comment and I can only say there are several reasons. One motivation for going in, aside from serving my country in an excellent unit, is to learn new and interesting skills. Everything I've checked about the officer program says that I'd likely lose some of that ability to choose what I do "based on the needs of the army." Everything I've read about the 20th impresses me and there are certain jobs in SF that I'm particularly interested in (like the 18C MOS). Plus, my wife's career is going very well, and I don't want to sidetrack her if I don't have to.

Thanks for the comments everyone. More is always appreciated.

I understand. My wife is a domestic engineer. Thus, home is where the kids are.

Honestly, whatever works for you and yours is the best way to go. Just thought I'd throw the O option out there.

Phantom · 12-25-2005, 20:10

Hello Dude,

One thing not yet brought up, is that one thing you will be entitled to (in addition to your base pay and possible bonuses) would be BAH (Basic Allowance for Housing). As non-prior service, you may not have considered or known about this.

For Active Army, the current BAH rate for E-1 through E-4 with dependents for DC053 is $1614 per month. You may draw this rate while in Initial Entry status. Once you are assigned to Ft. Bragg for the pipeline, it will probably be considered a permanent duty station for pay purposes (QP's please correct me here if I am incorrect) and your authorized BAH rate would drop to the rate for the local area (NC182) which is $867.00 per month for E-1 through E-4.

The rate for National Guard may be slightly different, and there may be different rules as to what location your BAH can be based on (you might get to keep the BAH or something close to it for DC instead of Ft. Bragg).

Good luck to you whatever your course of action.

You can read up on BAH/etc. >>HERE<<

Quote:

Originally Posted by The Dude

Hello everyone.

I was wondering if someone could maybe give me some advice or tell me how they might have dealt with a situation similar to mine.

I'd like to join 20th SF as a REP-63, I'd be looking at maybe leaving early spring or so.

What I've been struggling with is how to afford it. I currently make in the mid 50s. I'm not worried about affording deployments so much, because I know there are some bonus and tax incentives, etc. What worries me is the initial training OSUT, Airborne, SFAS, etc.) and how to overcome that income disparity.

It's not that I'm whining about the pay, it's just that housing in my area is notoriously expensive (DC Metro), so our house payment is a fairly significant part of our monthly budget. I have my first child on the way, and I'd prefer not to lose my house in serving my country. It'd also be a much easier sale to the wife if I could assure her that our financial risk is minimal. Do you guys know of any options I might have, or know other guys that were in a similar situation and how they handled it?

dennisw · 12-26-2005, 00:43

Sell your house. Put the equity in the bank. Find a cheaper place to rent. Maybe when you get out, prices will have dropped as interest rates rise and you'll be able to buy back in the market without losing anything.

Unless your house is made out of gold, don't let a mortage dictate your future.