THE SECRET TO BUDGETING IN THE MILITARY REVEALED

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Budgeting can be tough for military members, especially if your leadership doesn’t talk about it in your unit. However, managing your money is an important part of your military career. If you have poor money habits and constantly worry about bills, it can be hard to focus on what truly matters—your training and serving your country at 100%.

This isn’t just a problem for military members; many people struggle with budgeting. That’s why I’m here to introduce you to a simple rule that can help you manage your hard-earned money. But first, let me share how I discovered this method.

MY JOURNEY TO FINANCIAL LITERACY

When I joined the Marine Corps over four years ago, I became very interested in finance. Growing up, I saw my parents struggle with money, so I wanted to learn how to manage it properly. After boot camp, I started reading finance books and watching YouTube videos from top financial creators like Andre Jikh, Meet Kevin, Graham Stephan, and Charlie Chang. I also explored online communities focused on saving, investing, and financial independence, such as the FIRE (Financial Independence, Retire Early) movement.

These resources provided great insights, but I also learned to be cautious. Not all financial advice is reliable, so take everything with a grain of salt—including what I share here. I’m not a financial advisor, just someone sharing what has worked for me.

THE 50/30/20 BUDGETING RULE

The rule I follow is the 50/30/20 rule, a simple and effective way to budget. While it’s flexible depending on your lifestyle, goals, and needs, the basic idea is to divide your after-tax income into three categories:

50% for Needs – This includes rent, food, car insurance, and other essentials you can’t live without.
30% for Wants – This covers entertainment, hobbies, eating out, and other non-essential expenses.
20% for Savings or Debt – This portion should go toward an emergency fund, investments, or paying off debt.

For example, if your after-tax income is $3,000 per month:

$1,500 goes to needs like rent and groceries.
$900 is for wants, such as hobbies and entertainment.
$600 is allocated to savings, investments, or debt payments.

The 20% savings category is crucial because it allows you to build an emergency fund. Emergencies happen—whether it’s a family issue, medical expense, or unexpected car repair. Over the past four years, I’ve had to dip into my emergency savings multiple times, and I’m glad I had it.

ADJUSTING THE RULE BASED ON YOUR SITUATION

If you have a lot of debt, you might consider a 50/10/40 rule, where you allocate:

50% for Needs
10% for Wants
40% for Debt Repayment

This is a more aggressive approach, but it helps clear your debts faster and build financial security.

A SIMPLE PLAN FOR MILITARY MEMBERS

For military personnel, this budgeting method is easy to follow. When I first started, I used the 50/10/40 rule. Since I didn’t have many expenses while living on base, I could allocate more money to savings and investments. If you just finished boot camp, consider doing the same—focus on necessities and put the rest into savings and investments.

Military life involves frequent moves, deployments, and financial uncertainty, so having a solid budget makes a huge difference. This simple framework allows you to take control of your finances and work toward financial independence.

FINAL THOUGHTS

Budgeting doesn’t have to be complicated. By following a structured rule like 50/30/20, you can build financial security and reduce stress. Whether you’re just starting out or looking to improve your money management, this method is a great foundation.

If you found this helpful, share it with fellow service members who might be struggling with their finances. Financial literacy is crucial, and together we can build a stronger, more financially secure military community.

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

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