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.

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

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.

**Dan** · 12-26-2005, 08:06

BLUF: You need to focus on doing two things during this time (1) being a good soldier and focused intensity on the Q (2) being a good husband and father.

Everything else will fall into place including your finances. As far as your financial query it's hard to give any advice because you have too many variables it seems that are unclear to me like:
- How many months can you live off of your emergency fund (with no other help financially)?
- do you have any other debt and if so how much?
- will the wife lose her income when she is 8 months pregnant?
- how long before she can go back to work to get income flowing?

The best advice I've heard so far, based on what I understand, is from dennisw to sell the home, rent, save enough for 100% down, buy with cash later, and enjoy things debt free. Reason being that if you didn't have 3-6 months of living expenses in an emergency fund, you wouldn't be coming here asking for advice on finances!

Without knowing some of the above variables, the best advice I can give is to get on a good financial plan. Here's a few good plans:
- Get the book (Total Money Makeover" by Dave Ramsey (daveramsey.com)
- I'm not sure if they have a book, but (crown.org) has a good plan too.

dennisw · 12-26-2005, 13:42

This next little bit of advice is free of charge. Having raised two kids and been around the block a few times, it's my opinion, kids need more than college funds. They need a mom at home. I realize your wife makes good dough, but your baby only has one childhood.

The wife and I struggled after she quit her job to raise the kids. Would not trade it for the world. Be careful or your little one will be raised with other folks' norms and standards.

I know it's tough, but no one said it was supposed to be easy. Just my 2 cents.

Sten · 12-26-2005, 17:34

Quote:

Originally Posted by dennisw

This next little bit of advice is free of charge. Having raised two kids and been around the block a few times, it's my opinion, kids need more than college funds. They need a mom at home. I realize your wife makes good dough, but your baby only has one childhood.

The wife and I struggled after she quit her job to raise the kids. Would not trade it for the world. Be careful or your little one will be raised with other folks' norms and standards.

I know it's tough, but no one said it was supposed to be easy. Just my 2 cents.

Or a dad at home.

fsamimi · 02-27-2006, 13:57

Also, Google the Servicemembers' Civil Relief Act (SCRA). I searched for this but didn't see any references on this site.

DanUCSB · 02-27-2006, 17:44

I am not NG, but I have been AD with dependents. I, also, currently live in a place that is very expensive (Santa Barbara, CA), with a wife and two children.

And the best piece of advice I would give is to restrain your habits.

The biggest problem with making money, from my perspective, and especially if you are going into the service, is that it's way too easy to just assume that your current standard of living is the minimum you deserve. It's happened to me, it's happened to a lot of people. But the fact is, almost everyone has a whole lot of creature comforts that aren't exactly necessary. You don't need a mortgage. You especially don't need a car payment. I am yet a young man, and one thing I've noticed amongst many of my 'peers' here is that everyone assumes that they should have all the luxuries and creature comforts of a successful middle-aged businessman (your own home, a new car, several credit cards, that big screen TV... all with payments attached)...

... even while they are still in their twenties.

In short, live within your means. You can do it, quite happily, after an initial adjustment period. If your means ain't up to your livin', your livin' best change.