"What If You Had to Start Over?" Brand New Military Officer and Enlisted Advice #237
If Spencer commissioned today, at 22 years old with everything he learned from 12 years on active duty, what would he actually do with his money? A listener on Instagram asked exactly that, and this episode is the answer: a 13-point playbook for brand new officers and enlisted servicemembers, from your first bank account to the books that will shape your investing philosophy. Plus why "borrow the Career Starter loan and invest it" is less of a no-brainer than the internet claims, and why achieving financial independence might be the worst thing that ever happens to you.
Questions Answered
- If you were starting over as a new military officer, what would you do differently?
- Should you take the Career Starter loan and invest it?
- How much should a new servicemember contribute to the Roth TSP?
- Which lifecycle fund should you pick when you first create your TSP account?
- How big should your emergency fund be when you're just getting started?
- How do you change your state of legal residency to a no income tax state?
- What savings rate is reasonable without sacrificing your 20s?
- Whose financial advice can you actually trust as a new servicemember?
- What books should every new officer or enlisted member read?
Main Topics Covered
- The 5-step quick start: military-friendly bank, emergency fund in a HYSA, 5% into Roth TSP, pay off debt, build your savings rate
- Everybody has an angle: how to filter advice from senior NCOs, Facebook TSP-timing groups, and finance influencers (including Spencer's own credit card affiliate incentive)
- Why "you gotta buy real estate every PCS" advice may not survive 6-7% interest rates
- Career Starter loan math: borrowing and investing $36,000 vs. just investing the payments, over 5 years and 40 years
- Roth TSP setup, the 24-month wait for the 5% match, and the Lifecycle 2075 fund
- Opening a Roth IRA at Schwab, Fidelity, or Vanguard and starting with VT (Vanguard Total World Stock ETF)
- LADS investing: low-cost, automated, diversified, simple, and why bonds can wait until your 40s
- Emergency fund milestones: $1,000, then $5,000, then $10,000
- Changing your state of legal residency with DD Form 2058, the 8 no income tax states, and home of record vs. state of legal residency
- Sustainable savings rates: the ski trip Spencer still regrets skipping as a lieutenant
- Why financial independence can leave you lost if you sacrifice relationships and experiences to get there
- Turning your commute into a financial education with podcasts and audiobooks
- The military financial order of operations, step by step
Books Mentioned
- The Military Money Manual: A Practical Guide to Financial Freedom by Spencer Reese (Amazon or shop.militarymoneymanual.com)
- I Will Teach You to Be Rich by Ramit Sethi
- The Psychology of Money by Morgan Housel
- The Simple Path to Wealth by JL Collins
- The Little Book of Common Sense Investing by John Bogle
- A Random Walk Down Wall Street by Burton Malkiel
- Die With Zero by Bill Perkins
- Money for Couples by Ramit Sethi
Resources Mentioned
- Free Ultimate Military Investing Course: militarymoneymanual.com
- Military Financial Order of Operations: militarymoneymanual.com/foo
- r/MilitaryFinance on Reddit (50,000+ members) and the Military Money 101 prime directive flowchart
- TSP: tsp.gov
- myPay for TSP contributions and LES
- DD Form 2058 (change of state of legal residency)
- Military-friendly banks: USAA, Navy Federal Credit Union, PenFed
Spencer and Jamie offer one-on-one Military Money Mentor sessions. Get your personal military money and personal finance questions answered in a confidential coaching call. militarymoneymanual.com/mentor
Over 24,000 military servicemembers and military spouses have graduated from the 100% free, Ultimate Military Credit Cards Course available at militarymoneymanual.com/umc3
In the Ultimate Military Credit Cards Course, you can learn how to apply for the most premium credit cards and get special military protections, such as waived annual fees, on elite cards like the Chase Sapphire Reserve® Card.
Learn how active duty military, military spouses, and Guard and Reserves on 30+ day active orders can get your annual fees waived on premium credit cards in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3
If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.
If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual.
