Shipping out in May as E-3. 15k in student loans. How should prepare financially?

[bolfun4k]

Hey Everybody,
I’ll be shipping to bmt in late May as an E-3. I saved up 10k in emergency fund, 12k in Roth 401k & Roth IRA. Plus I have 1k in each saving and checking account. I earn $2,600 after taxes every month. I pay off my credit card balance each month. Currently, I plan on saving money to pay off all of my student loans this year, I am making payments of $155, right now I owe a little over 15k. I am debating saving money right now in case I have to buy a car in my first duty station or until I figure out what my budget will look like. Any advice is much appreciated.

 

[paparazi257]

@bolfun4k Take advantage of low cost of living save money if you need a car get a beater not that mustang and get rid of that debt

2600 right now? Sounds like you will be taking a temporary 'pay cut' to join base pay starting as an E3 is 2300ish before taxes.

Food, they are taking your BAS so go to the chow halls get your prepaid food. Pay as little as possible for additional food/snacks minimize going out to eat. Dont drink your paychecks at a bar.

Your likely stuck in dorms so no BAH and no rent. Your bills will come down to phone, car, possibly internet. Budget another 100 for misc needs still probably easily have 1000 or so a month to pay extra on the loans or car.

Probably smart to expect to need a car. Something like 8-12k would likely be reasonable. If student loan debt intrest isnt crazy save up while in training focus on the loan with the highest intrest rate car or student loans when you reach your first duty station. Both can be fully paid off by end of year 2 and you will be doing better than many others by that point.

Gonna need a couple thousand saved up for moving out of the dorms somewhere around that point base dependant. Get a roommate and pocket half your BAH. Carefull with going crazy on buying shit to fill your apartment stick to essentials.

 

[insertusernamehere]

@bolfun4k If they are Stafford subsidized (some federal loans are, half of mine were) you can request a military deferment and interest will be dropped to 0 percent for the subsidized loans.

Check the status. Call and see if these qualify.

You can still make payments during deferment.

 

[kadian]

@bolfun4k How long will your BCT and AIT be? Are you married with kids?

 

[bolfun4k]

@kadian BMT (Air Force) is two months and tech school is another two months. I am doing security forces (MP)

 

[kadian]

@bolfun4k If you’re single, you realistically could go without a car for a bit. It’d suck but possible.

My advice may not be good but if you could half your pay (1300) pay that towards the balance that would cover about 1/3 of the 15k. Once you get to your unit put another 1300 a month to it for 8 months. It’d be done with.

I’m horrible with money that may not be good advice but if you personally can afford to do that less than a year your loan is paid

 

[powersforgood]

@bolfun4k SF? lol. RIP

 

[bolfun4k]

I am not married nor have kids

 

[polcat]

@bolfun4k You don’t have an MOS where your loan can be covered by the DOD?

 

[ncouraged]

@bolfun4k SCRA might get rid of some of your debt.

 

[peacefulrivers]

@bolfun4k Firstly do you have a bachelors if it’s a yes why don’t you just commission?

Secondly look into SCRA and as you pay the loan off build a HYSA while interest rates are high and try to save up enough for a full pay off