Review of financial charts::How to Read Stock Charts?
My biggest financial regret is that I didn't save at least half of every pay raise of my 28-year military career in the Marine Corps and Air Force.
One of the great things about the military is the numerous pay raises.
During a lengthy career, there are some years when you get three pay raises.
By saving half of every pay raise, I still could have improved my standard of living with the half not saved.
During the first four years, a person entering the military in the enlisted pay grade of E-1 receives 11 pay raises. When I worked in Air Force recruiting and would speak to high school classes, I would poll the students to see how many were working part-time jobs.
I would ask them how many pay raises they had received.
Most had never received a raise but some admittedly had gotten a pay bump.
Their eyes would light up when I would tell them about 11 pay raises in a four-year period. Imagine if during my 28 years I had saved half of every pay raise.
I would have been able to increase the amount being saved every January 1, every promotion to a new grade and every two years when I received the longevity raises.
Had I only stayed 20 years and averaged pay raises of $300 per month, the strategy would have provided $342,000 in just the first 20 years.
For an officer it would equal close to $700,000 in a 20-year career. Had I retired with $342,000 in the bank, what kind of flexibility would I have had in deciding whether to start another career?
I could have paid cash for a house and a new truck.
Imagine how liberating it would be if you didn't have a house or a car payment?
An important thing to remember is that these numbers do not include any interest earned along the way.
Some would say you can't get wealthy in the military, but if you save half of every pay raise, the chances of being able to completely retire after earning a monthly retirement check are far more realistic. Website of interest: Department of Defense Historical Pay Charts
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