So I am thinking of joining the army. Of Course, there's a lot to consider, and while financial aspects are just one part of that, they are an important part. If I was to discover that it doesn't make financial sense to join, it would play a big role in my decision.
I am married, have a masters degree, and about 59k in student loans I am paying off. I am not a big financial person, so I am not the most knowledgeable about how to save or invest money. I basically have just lived my life as "work, put it in your savings, go to school" and now I am trying to find out what to do next. I worked for a year then moved abroad and am now coming back and prepping for my next stage in life and I have about 22K in savings.
My options as I see them are to join the Army for 3-4 years or take up a job at a place I know will happily have me. My recruiter says that with my college education, I could start as an E-4. While I would like to have both student loan repayment and Option 19 to be with my partner, my recruiter says only one or the other is possible, so I would be taking the SLR over option 19. I know most would recommend OCS but given I do not want to commit to a full 10 years active duty, and would prefer 3-4 years, it is not considered here.
The other option is to get a civilian job in a location I like, with a company I have worked for in the past, but also far away from my partner, who could not move with me for the foreseeable future because of his job.
From what I gather, (and noting it apparently varies wildly from person to person) as a married E-4 I could earn about $25,915 per year for the first 2 years ($31,604 with a 12% tax), followed by $30,818 for years 3 and 4 (if I do a 4 year contract) ($35,020 – tax). That leaves me making close to $82,649 in 3 years, maybe $113,467 if I stick in for 4. On top of that sum going into my pocket, Uncle Sam pays my 59K in student loans for me so long as I file every year through the right documents to my S1, as I am told is needed with SLR. Considering housing and healthcare is covered by the army, I figure I would be saving a lot, but to be pessimistic let me say I am making 76,863.57 over the course of 3 years by included a 7% pessimism tax. An addition potential bonus includes what comes after service, such as a VA Home loan.
On the other hand, the job I am thinking of is a civilian job in Vermont that pays between $33-35 dollars an hour. Lets be conservative here and start at 33 an hour, which is a yearly income of about of about $68,640. Vermont's taxes combined with federal is about 16%, so I would be taking home about $57,708. Then subtract 45% for the cost of housing, food, transport, and other needs (that figure is 35% for housing, VT housing is rough) and I am left taking home about $31,739.4, and over three years that's $95,218. of course at least some that going towards my student loans, how much depending on how fast I try to get rid of them.
From all of this, I gather that i may make more at the civvie job, but more of my only gets sent to my landlord, student loans, and other expenses rather than into my bank account, whereas in the army I would make more, but uncle same would be eliminating my loans over my service time and paying for my housing. Mathematically (and I admit I am doing my best here despite my bad math skills) it seems the civvie job may still have a slight edge from purely a financial point of view.
So here are the questions:
-Did I mess up my math somewhere or leave something important out?
-Is there an obvious right answer here?
So far, I am leaning towards joining: on top of personal reasons not listed, I get the benefits listed above, my family supports me going in, and, if after 3 years I want out, I can always get the civvie job, as it is in a pretty demanded field in a a rural area (an I have worked for the company in the past).
Here is what I used to get my numbers:
https://smartasset.com/taxes/vermont-tax-calculator#fv1kFtw1fQ
https://militarypay.defense.gov/Calculators/RMC-Calculator/
Again, I am new to all of this, and I really appreciate the help and insights. Thanks!
Looking for some financial perspectives on joining the army
byu/Vermontster1777 inMilitaryFinance
Posted by Vermontster1777
5 Comments
Unless your masters is in something worthless like philosophy do not join as enlisted, officers get paid better. Also join the air force.
Enlisting in the Army with a Masters degree? Heck no. Pick a different branch or apply for OCS/OTS. Junior E life is ok when 18-20. But it is far less enjoyable when older.
I was an E-3. Then jumped to Officer. Stayed and retired there. So much better.
I would strongly not enlisting if you have a Master’s degree personally. You went to grad school to build a valuable skill set and joining the military there’s no guarantee your job will advance that skill that should be financially viable as a civilian.
Where are you getting 10 year service commitment? That’s only for rated jobs like a pilot.
Go officer. You’ll start around 75ish a year. But by 4-6 years you’ll be making 6 figures.
In today’s society, BAH may cover rent. Unfortunately, the government can’t regulate how much rentals costs for SMs so property managers in military towns like to charge BAH. This doesn’t account for utilities. BAS doesn’t cover the cost of a month’s worth of groceries. So really as an E-4 you will be an overworked person with a masters.
Where is this 10 year adso coming from for OCS?
Its already been said, but 10 year commitment as an officer? Not correct. The enlisted recruiter is most likely telling you this lie so you don’t head over to an officer recruiter. Find an officer recruiter and at least get the true story.