HOW TO SAVE YOUR FIRST $10,000 IN THE MILITARY: 5 EASY STEPS

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Saving money in the military can feel like a huge challenge, especially when you’re just starting out. In 2017, nearly half of military members had less than $B u t d o n ’ t w orry — s a v in g yo u r f i rs t$ 10,000 is totally possible, and I’m here to show you how. As someone who saved $10,000 in just six months after MOS school, I’ll share the steps I took (and some tips to make it easier for you). Let’s get started!

STEP 1: OPEN A HIGH-YIELD SAVINGS ACCOUNT

The first step to saving big is to open a high-yield savings account. Unlike regular bank accounts, these accounts offer much higher interest rates, which means your money grows faster over time. For example, Navy Federal and USAA savings accounts have low interest rates, so I recommend switching to a platform like SoFi.

With SoFi, you can earn up to 4% APY (annual percentage yield) on your savings, and your money is FDIC insured up to just for setting up direct deposit. It’s a win-win!

STEP 2: PAY YOURSELF FIRST

Once your high-yield savings account is set up, it’s time to pay yourself first. This means that as soon as your paycheck hits your account, you should automatically transfer a portion of it into your savings. I recommend saving at least 20% of your income, based on the 50/30/20 rule (50% for needs, 30% for wants, and 20% for savings).

By saving first, you’ll avoid the temptation to spend all your money on things like eating out or vending machine snacks. Instead, you’ll make smarter decisions about how much you can spend based on what’s left after saving.

STEP 3: CALCULATE YOUR MONTHLY SAVINGS GOAL

To save $ $yo u ’ ll n ee d t o s a v e ab o u t $$ 833 per month. That breaks down to $

The good news? Military pay is increasing in 2025! Junior enlisted troops will get a 14.5% pay raise, making it even easier to hit your savings goal. And if you deploy, you’ll earn extra money through hazard pay and bonuses, which can help you save even faster.

STEP 4: TRACK YOUR SPENDING

If you’re not tracking your money, you’re at a disadvantage. Start by using a budgeting app, creating a Google spreadsheet, or even writing everything down in a notebook. Tracking your spending will help you see where your money is going and identify areas where you can cut back.

For example, maybe you’re spending too much on eating out or subscriptions you don’t use. By cutting these unnecessary expenses, you can free up more money to put toward your $10,000 goal.

STEP 5: CONSIDER INVESTING (OPTIONAL)

Once you’ve saved your first $10,000, you can start thinking about investing to grow your money even more. For beginners, I recommend investing in the S&P 500 Index Fund. This is a stock that tracks the top 500 companies in the U.S., like Apple, Amazon, and Google.

Historically, the S&P 500 has returned an average of 10% per year (or 6-7% after inflation). While investing is riskier than a savings account, it’s a great way to build wealth over time thanks to compound interest. Just remember, the stock market is a long-term game, so only invest money you can afford to lose.

If you’re new to investing, choosing the right platform can make a big difference. Here are two beginner-friendly options I recommend:

Robinhood:
Robinhood is a great platform for beginners because it’s simple and easy to use. You can start investing with just a few dollars, and the app makes it easy to buy and sell stocks, ETFs, and more. Plus, there are no fees for most trades, which is perfect if you’re just starting out.

2. Acorns:
Acorns is another excellent option if you want to invest without thinking too much about it. The app automatically rounds up your everyday purchases and invests the spare change into a portfolio of ETFs. It’s a hands-off way to start investing, and you can set up recurring deposits to grow your money over time.

BONUS TIP: MAKE EXTRA MONEY

If you want to save even faster, consider picking up a side hustle. Some Marines work part-time jobs at places like Domino’s, while others start side hustles like giving haircuts in the barracks. There are plenty of ways to make extra cash—check out my video on the best side hustles for military members to learn more.

FINAL THOUGHTS

Saving your first $10,000 in the military is totally doable if you follow these steps:

Open a high-yield savings account.
Pay yourself first by saving 20% of your income.
Calculate your monthly savings goal ($833/month).
Track your spending to cut unnecessary expenses.
Consider investing once you’ve saved $10,000.

Remember, the key to saving is consistency and discipline. Start small, stay focused, and before you know it, you’ll hit that $10,000 goal. Good luck, and happy saving!

Disclaimer: I’m not a financial advisor. This article is for educational purposes only. Always do your own research before making any financial decisions.

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