I Plotted Every Dollar Earned/Spent in First 5 Years in Military [X-post from /r/personalfinance]

[conoro]

I've developed a pretty easy habit that gives me a satisfying amount of detail about my personal spending habits. Last year I got a lot of comments asking for more detail on how I do it so I thought I would give an update here. Please send me feedback/recommendations. I'd also just be curious to see how other people do it.

Background info: I'm USAF O-3, 28 years old, single no dependents

https://imgur.com/BY9AxSg

 

[mation77]

@conoro This is great. As we say in the navy, Bravo Zulu on paying down all the debt and investing all that money!

As a side note: I don't know how many airmen you lead but keep in mind that to the average (enlisted) 18 year old, who has zero financial background or training, this will intimidate them....you might want to tailor it a little to very basic budgeting techniques if you get a chance to talk to your guys about money--and that paves the way for you share it with ones who do want more input. FWIW I try to start with the "let's math out how much money you want to have for Christmas leave. Plane ticket + gas money for borrowing mom's car or car rental + gifts + a few rounds at the bar with your buddies + taking your family to dinner = ~$3500 (I'm stationed in Japan, airfare is ~$2,500). So how much do you need to save a pay day to not be stressed at Christmas?" This has led to many, many productive conversations with my junior sailors about cash flow.

 

[thanhpvbds8386]

@mation77 Shoot, I'm 28, 7 yrs TIS and an E-5 and it still intimidates me!

 

[mation77]

@thanhpvbds8386 Yeah...I am not that meticulous with my day-to-day budget. When I first started learning about money I would have immediately decided that I wanted nothing to do with budgeting if I was required to track it to this level.

In fact, it took the first year of marriage for Mr. TheBeneGesseritWitch and I to find a system that works for both of us. Our bills are tallied and we each deposit half +250 in a joint account. Then we each save an agreed upon amount in our various TSP/IRA/emergency fund/etc....and then the rest is our fun money. I don't track the fun money beyond withdrawing cash and tracking each debit with the app to ensure it clears--but when that money is gone, it's gone. If I had to meticulously write everything down I would be frustrated. I do think my husband keeps a ledger for his checking account though. IMO as long as you know where your money is going, are investing and paying off debt/debt free, you're good. You gotta have a system that works for you, otherwise you won't follow it.

 

[conoro]

@mation77 Agree 100%

 

[j010203t]

@conoro Just like @ken123 mentioned, this would intimidate even careerists. I'm a 16+ yr TSgt, so I have seen quite a few different strategies, and this would be at the top of my list, however, without serious financial education (you can't tell me the A&FRC is that awesome, if you made it to O-3 you're well aware of that) many of your airmen will be at a loss.

Think about starting a small (no ABU tops allowed) class within your unit; I know I'd personally attend, if someone could use plain English. I'm a crew chief, and a lot of the help I needed at a young age just wasn't that available. Please let us all know what happens!

 

[mation77]

@j010203t My husband also suggested doing it by rank because you can do a mock-up of an average pay period for an E5 etc. His E1-3s were really flabbergasted to learn he was putting 25% into tsp ($800+; that's their base pay). He had to stop and explain he's dual military and we are both E6 and we live on an E5 pay, so our lifestyle is radically different than theirs--and that is okay. It's about managing your money in a way to help you meet your goals.

 

[conoro]

@mation77 Yeah that's essentially what I did. I just kept living like an O1 after each promotion. Having had no paycheck before I still felt rich

 

[conoro]

@j010203t This is great advice. As an engineer I have very little face time with anybody newer than E5s

 

[conoro]

@j010203t Hey! The sanitized spreadsheet is posted here. Happy New Year!

https://www.reddit.com/r/personalfinance/comments/3yp1ih

 

[omssandy]

@conoro Thanks for doing this man. Love it.

 

[conoro]

@omssandy thanks feel free to share with your folks and hit me up if you have questions

 

[roberta1]

@conoro Looks awesome!

 

[dojusnider]

@conoro I was under the impression that the TSP has a lower expense ratio than any IRA options available. Have you found something cheaper or am I reading your spreadsheet wrong?

 

[conoro]

@dojusnider I only use Roth Ira so I can pick and choose more specific stocks to invest in at the coat of slightly higher fees for the mutual funds.To be honest I'm not the best person to listen when it comes to what to invest in.

 

[conoro]

@dojusnider Hey! The sanitized spreadsheet is posted here. Happy New Year!

https://www.reddit.com/r/personalfinance/comments/3yp1ih

 

[rajeduraj04]

@conoro Wow. This beats out my budget sheets. My girlfriend developed ours from the Dave Ramsey sheets in his Total Money Makeover book. That's worked really well for me. But, sheesh. I'm going to be looking to see if I should replicate your sheets. Congratulations.