r/personalfinance • sogolden20:
Thinking about leaving the military but worried I can’t match the pay. i am 19 and enlisted, not an officer, but i have been thinking about this a lot lately. i have a couple years left on my commitment and i feel really torn about what to do after. i do not hate being in but i do not really love it either. it gives me stability though and that is hard to ignore. right now my pay is not huge but with all the allowances it is decent for my age. housing and food are covered, plus healthcare is free. even little things like dental, vision, mental health, all of it would cost way more on the outside. i get leave and i have been able to save more than i ever thought i could at 19. but at the same time i feel really limited. the schedule, the rules, the vibe of it can feel suffocating. i think about going to school with the gi bill when i am done. i want to study something creative or maybe something in tech. knowing it would be paid for is huge. but then i see people outside working two jobs just to pay rent or cover healthcare and i get scared i will not make enough. i want freedom but i do not want to struggle. i also see older people staying in for the pension and honestly that is tempting. it feels strange being so young and already thinking about retirement but the idea of guaranteed pay after 20 years is hard to ignore. i guess i am just trying to figure out if wanting more freedom is worth giving up the security i have now. for anyone who has gotten out, did you feel it was worth it? how did you handle losing the guaranteed stuff like healthcare and housing? is it wrong to consider staying even if i am not passionate about it, just because it is stable? i would really like to know how others think about this.
If you’ve only been in a short time, I have several words of wisdom.
- Put yourself in a financial situation to do whatever you want when you separate despite a potential reduction in pay. That means don’t spend all your income, make sure you have no high interest debt and significant savings. You’re absolutely right that the military does well to take care of active duty with pay, allowances, and Tricare. When you get out, a reduction in total salary is very plausible, and most people don’t realize it, so you’re ahead on that account. This way, you can stay in, get out, go to college, get a civilian job, join the Peace Corps, whatever, and you won’t have financial hardship.
- If you choose to buy a house, you should be aware that if its not your hometown, there’s a high probability you’ll move away and never come back. All my friends (including my parents friends, my dad retired after 26 years) except one sold every house they bought while they were in the military and about half of them at a loss, military timelines just don’t lend to appreciation. They bought new houses after they separated/retired even if they owned other ones. You just don’t go back like you think you will. Property managers are expensive, outsourcing repairs and maintenance is expensive. Etc.
- You can cross-train. If you want to stay in but you’re not loving your current job, you decide you want to go into IT or cybersecurity or something else, you can try to switch into one of those jobs in a few years. Its easier than getting into those industries as a civilian, even if you have to apply a few times over a few years, once you’re in the job and training are guaranteed and if you then get out, getting a civilian job with relevant experience is much easier.
- The GI Bill is amazing. Separating from the military, going to college full time for free with an E5 w/dep bah stipend is far more than most college students have for income. I used half my dad’s GI bill when I was in college and during those 2 years I felt like I was rolling in money. I was dumb and had an expensive, depressed boyfriend so all that money disappeared, but you’ll do better than I did lol. Now I have my own GI Bill (I know, I’m spoiled) as well, and I’ve been a much better steward of that benefit.
- Travel dude. If you can go overseas, do it. Homesickness is real, but it fades for most people really fast. There are military members who are always miserable because they always miss the base they left behind, and there are members who are always stoked for a new experience. There’s so much to see, to experience, to learn, to EAT. There’s incredible hikes and skiing and surfing and trains and cruises and scuba diving. Most of that stuff is cheaper overseas than it is in the US. It’ll never be as easy to travel the world as it is in the military.
I was active duty and I hated every minute of it, I had shitty leadership who lied to me and made shit up to get me out of their offices because they were overworked and overwhelmed too. I ruined my career over some bad advice and got out after 3.5 years of depression. My husband, on the other hand, had an excellent experience his first 9 years in and is only now experiencing shitty leadership but he has the background now to know that it isn’t all like that. He loves his job, he’s already cross-trained to something he really enjoys after he finished his commitment with his initial AFSC. We’ve already lived in California, North Dakota, Sicily(Italy), and now Washington DC. I’m hoping for Japan or Brussels next if we’re super lucky but I’ve learned to be happy anywhere and try to focus on the incredible new opportunities everywhere we go. Financially, our ability to quit working before age 65 hinges on his making it to 20 years in the air force and securing his pension and Tricare for life. The US military pension is one of the few pensions that actually survives litigation as corporations around the country have gutted pensions for bankruptcies, or using members benefits to cover their healthcare premiums, reducing their actual income to almost nothing. It’s tough to beat. Having a really nice nest egg will get you into a pretty good place though, if the military isn’t worth it for you.
Life will always have pros and cons, the military is no different. Take full advantage, so when you get out, whether that’s in 2 years or 20, you have no regrets. Good luck!