If the Army supposedly pays so well, why are so many soldiers ending up in terrible debt? (Including myself)?

Answer 1

Who said the military paid well? It's not a matter of pay, but personal resposibility. For example, I am currently stationed in Japan, and you see all these young troops with these souped up cars. The NCOs and officers, on the other hand, tend to drive crappy cars. Also, for the most part, the young ones go out every weekend, while the older guys stay home.

So basically, you've got these kids that, for the most part, are experiencing living alone for the first time. They're given free room and board, and a paycheck on top of that. They end up living paycheck to paycheck, and wind up in debt because they bought an expensive car, TV, etc. right off the bat.

I'm not saying there are senior NCOs and officers that aren't doing the same thing, but it IS the younger ones for the most part.

True, we get paid less initially, but if you add up room and board, it equals to about the same.
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Answer 2

Firstly I would like to know where you get the impression that the Army pays well, you didn't cite a source. Secondly, I can assure you that the Army pay is well below par for a comparable job in the civilian world. How do I know this? I'm a Military spouse, and have to try and make ends meet every month. Those who are new to the Army way of life, are of low rank, and have 3+ children are always going to have too much month at the end of their pay. The best thing for the Army (government housing) is slowly being replaced by privately owned companies who charge $800+ for a small 2 bed apartment. Private rentals are no better in our area, although you can depend on the repairs being done when they are needed. Towns outside Army posts, charge through the nose for services, just because you're military. Out of the pay check household bills have to be paid, car payments made, co-payments for dental and optical, children's needs, uniforms (usually people wait and buy these once a year), groceries, telephone, all the same as the outside world, but with less money coming in. The ACS offer finance classes to help both Single Soldiers and Marrieds better budget their pay check, but with so many extras expenses this doesn't always work. After all you end up buying those extra things to make sure you come back from OIF or OEF in one piece. The Army consistently pays low to keep the service member indebted to them, after all you're Government Issue, and as such you belong to them. Why else would they discharge you should you be lucky enough to win the lottery. They want you to need them, and create that need by constantly underpaying those that need the bigger pay rises. In the long run, however, the pay is not what the dedicated Soldier joined the Army for, and if I wanted an easier way of married life I wouldn't have married one, but then they say Military Spouse - toughest job in the Army.

Answer 3

Nobody ever said the Army paid well. In fact, it's been proved that we don't make that much money at all. Several military personnel just joining with a family qualify for food stamps. It's quite sad when our military have to get food stamps to survive.

That said, it's also about living within your means. Learn to go without. Budget your money. I've haven't worked since we had our daughter. We own our house and we have a fairly new car. We did buy it new, but it's 2 years old now. Our daughter is also in private school because public education here leaves alot to be desired. It's just a matter of setting priorities. Everytime we want a new DVD player or movie, we remember what's important. We only buy what we can afford and we try to avoid using credit cards. We also take advantage of deployments. I mean, if you have to go, might as well use what you get. We pay off bills and set up savings. Sometimes it's not much, but every little bit helps.

When we were lower ranking and needed a new car, we said we couldn't afford it. Then I started going through all our records. I made account of everything spent. Come to find out, we were spending about $300 a month at Wal-Mart. That wasn't our groceries. That was just toys or things we wanted. That immediately stopped and we found that we could afford a new car and the insurance.

It's all about priorities!!

Answer 4

Not budeting well. In my family my husband is the only one working right now. He's an E4 and we have 2 kids but we still are able to save money and have 2 new cars that are bought and paid for (an 05 and an 06...though to be honest the 05 we were only able to get because of a job I had last year while he was deployed) You just have to learn where you can cut some of your costs and put money towards paying off your debts but also save some for when you have unexpected costs. One way to do that is to keep a journal of every single thing you spend money on. You'll see you probably spend alot on junk you really don't need or care about (I know we did!) and that'll show you what you can do without. It really can be done...just takes alot of planning.

Answer 5

"The army supposedly pays well" ahaha. Who told you that, your recruiter?

Alot of soldiers save thier money while they're deployed because there's nowhere to spend any money. Then when they return home, they have more money than they have ever seen. They go on a spending spree buying more than they can afford. In a few months they're in debt and selling all they crap they bought. I picked up a plasma tv for only 500$ from a battle buddy.

Hey make sure to use all your benefits.

Answer 6

Most people above have hit it on the head. Young troops, probably on their own for the first time, often manage their money poorly. What are your bills? Car and Insurance? Maybe you should get a cheaper car, or just buy a bike. Not only is a bike cheaper, you stay in better shape for your PT test. Maybe you own a cell phone? Buy a pre paid instead, and set your self on a budget. Where else does your money go? unless you have sick relatives or alimony payments, it's hard to work up much sympathy for your getting your self in debt. Even if an unscrupulous salesman cheated you, it was still your decision to ignore the advice your NCOs almost certainly gave you about avoiding them.

Answer 7

DEBT is a matter of personal responsibility. The military has never been paid "WELL", I know I was in the Navy for 15 yrs and it was often tight and I watched others fritter their money away on electronics, cars, tattoos, drinking and lousy spouses. THAT is how you end up in debt... spending beyond your means.

BUT I was raised to live within my means and on a budget... I was also taught to avoid credit like the plague.

I was doing VERY well in my first 5 years living single, on base and saving like a fiend as an E-5. The next 3 years was a disaster as my new wife drove us to near bankruptcy, clearing out $40,000 in savings before our divorce.

The last 7 years was great... I paid her support for 1.5 years (half my basic pay) and then when it stopped I had that same amount shifted to a savings account. I then purchased a house, rented it out, and went on constant deployment for my last 5 years. I saved over $215,000 of my pay and salary.

Admittedly I was an OE-3 making flight pay, sea pay, combat-action pay those last 5 years, and spent the WHOLE time living from carrier to carrier... not a day in the USA in 5 yrs.

Answer 8

Sometimes I wonder that but there are a few ways my husband and I could have less or lower bills than we have right now.

What I want to know is why do the reserves get a HUUUUUGE enlistment bonus when fulltime enlistees are the ones most likely to need savings for PCS-ing and also the fact that they DON'T have time to work jobs outside of the military?

centrilius, you forgot to factor in Basic Housing Allowances and other allowances. If you live on base you still get all of the pay you mentioned you just dont have to pay for your housing or utility bills. When you take those things into account you are almost getting double that number you mentioned.

Answer 9

As far as I know, Army pay is still not all that different from Navy pay. And a Dead Horse is still a Dead Horse. And everyone still gets cautioned about Advanced pay.......... but people still take it. And when the rest of the bills come due, the paycheck has already gone to the dead horse and what are we gonna do now? A person's finances are thier responsibility. Many people don't like the fact that I pay cash. I don't carry plastic. If I don't have the cash, I don't buy it. No plastic, no bill, no problem.

Answer 10

Far too many young soldiers buy things on credit that they shouldn't. They do not earn very much and need to be educated early on about their limited buying power. Credit cards and used car lots will extend credit to anyone willing to sign away their future, this does not mean that you ( or any young soldier) should fall for their practices. Self control and self discipline are important (crucial) skils to develop. Good luck getting out of debt, I did the same thing when I was in the Army 15 years ago.