If you’re an active duty military member, you just received your first paycheck for 2012. Like me you saw a raise of 1.6%. If you haven’t already done so, consider contributing this increase to your personal savings program, whether that’s your TSP, a ROTH IRA, or just a savings account. Over time this process of increasing your savings will lead to big improvements in your overall wealth building capability.
I have posted previously about the 8% challenge. This technique allows you to save a month’s pay per year. Over a three year assignment, you can create a 3 month emergency fund that will anchor your financial life as you prepare for your next move, whether that’s to a new duty station, discharge, or retirement.
Perhaps this is the year that you get on the 8% Solution, and the Government will get you started with the first 1.6%.
Happy New Year,