Using just part of your military paycheck, you can retire as a military millionaire. It's true.
Becoming a military millionaire is about making your money work for you while you're enlisted in the military, and it isn't as complicated as it sounds. It starts with your focused military attitude towards money management, and ends with you receiving a million dollar payback.
Following these solid financial rules and investment strategies, you can keep it simple and become a military millionaire, even well before your military retirement.
MILITARY MILLIONAIRE RULE #1
Pay yourself first from each military paycheck
The first rule of the military millionaire is to invest 10% of your military paycheck each pay period.
This is the "Pay Yourself First" rule. You pay yourself first by automatically putting money from each military paycheck into an investment vehicle designed to make you money, before you spend your military pay on the necessities and luxuries you also deserve.
You must make it your unfailing habit to pay yourself first - any amount will do, but by paying yourself at least 10% of your military salary, you put yourself on the fast track to financial freedom.
Don't feel discouraged if you can't manage to pay yourself 10% of your military pay. Remember, consistency of payment is more important than the actual amount.
"Pay Yourself First" is your Number 1 Military Millionaire Rule, and it's non-negotiable.
MILITARY MILLIONAIRE RULE #2
Find your military investment style
Don't relinquish control of your finances to any financial experts; become educated and find the investment vehicles that suit your own military investing style.
Military investing isn't limited to the higher-risk world of the stock market. If you prefer a safer and more secure yield, you can invest your military pay in FDIC insured bank accounts including high-yield money markets, and harness the power of compounding interest.
-- Military Millionaire Strategy: Compounding Interest
How can you become a military millionaire with a military bank account? When you start young and make it a habit to invest 10% of each military paycheck in smart military banking, you are able harness the full power of compounding interest all through your military career.
Compounding interest is defined as interest earned on a combination of the money you have put into the account, plus interest which is added to your account each interest-period and thus becomes part of your increased balance. That increased balance continues earning more interest, and your investment simply grows over time.
The younger you start putting compounding interest to work for you as a strategy, the faster your military millionaire account may grow (interest rates do fluctuate).
With compounding interest and time on your side, if you started an account at age 18 and invested $174 per month, you could be a military millionaire by age 53.
If your paycheck is higher and you invest $701 per month monthly starting at age 18, you could become a military millionaire by age 40.
Compounding interest is one way your money "works" for you and "earns" you money.
-- Military Millionaire Strategy: Manage stocks with a military attitude
The stock market is nothing to be afraid of; it's just another investment vehicle. But, like all vehicles, it can run you off the road if you don't learn to how to manage its power before you start the engine.
If you don't have the time or inclination to learn stock market investing, you can still become a military millionaire with Strategy #1.
If you want to learn stock market investing but prefer a safer route, there are lower-risk stock investments that can still offer the potential for long-term gains.
Instead of buying one stock, or depending on stock recommendations from a friend or advisor, you can actually invest in the entire stock market all at once. The strategy is to invest in broad based market index investments.
Broad market index investments allow you to invest in the overall market, like the NASDQ 100 and S&P 500. Buying one S&P 500 index traded fund allows you to control a portion of all 500 stocks in that index. When the entire S&P 500 index moves up or down, your fund will reflect that; but you are spreading the risk over the entire market of 500 stocks as opposed to putting your money in one stock, or even one industry group.
A basic military investment technique called 'dollar cost averaging" allows you to consistently buy a fixed dollar-amount of a broad market index fund each month. Your bank and brokerage firm will automatically invest your specified amount monthly.
Make no mistake: broad based index fund investing still requires your thorough understanding. Track your stock market investments at least monthly, perhaps on the day you've arranged your dollar cost averaging plan each month.
-- Military Millionaire Strategy: Get down to business and become an entrepreneur
Being in the military gives you access to military small business loans and services that allow you to start a part-time business and earn hundreds of dollars in additional monthly pay.
Becoming an entrepreneur can help you fast-track it to military millionaire. With the added income from your business, maybe you can invest 20% of your military paycheck and apply your business-earned income towards your expenses. Or get really military minded and invest your entire military paycheck while you live off your business income.
There are also tax benefits available to business owners designed to keep more of your military paycheck in your pocket.
MILITARY MILLIONAIRE RULE #3
Choose investments and set your military compass to millionaire
Investing and managing your military paycheck isn't a subject taught in military training, but it's never too late to learn. These military investment strategies are just some of the ways you can become a military millionaire, in the shortest timeframe.
Just start investing in yourself now and don't stop till you reach your goal.you may just find yourself at Military Millionaire status sooner than you thought.
In doing my research comparing a VA loan versus a conventional loan, it appears that if you put 20% down on a conventional loan...
I used by VA home loan eligibility on a home purchase back in the 80's. I paid it off years ago. I want to purchase another home...
I am active duty military and government housing is not available at my base. Can a VA lender can count my BAH income...