Saving money in the Navy?

Question

I'll be graduating in a few months and I've pretty much made up my mind that I want to join the United States Navy. I've spoken to a recruiter and I believe it's the route I'd like to take but there are some things I've been wondering about.

Since there aren't any expenses in the Navy, it would seem like it would be easy to save about 90 percent of your earnings while enlisted and come out with a great deal of money in the bank. After I've finished my enlistment I'll attend college, and I'll still be supported financially by my family, but I was hoping to use the money I save to buy a new car among other luxurys. Does this seem plausible? Are there expenses I don't know about? Is it really as easy as it seems to save while enlisted? I don't think I've heard of anyone coming straight out of enlistment having much money saved. Am I missing something?

Answer 1

You can be able to save a lot of money. A good idea is to open a mutual fund account. You can place an allotment into the account. A good source is Charles Schwab.

Answer 2

Well you are correct that there are not that many expenses while in the Navy. However, the main reason that you will have a hard time saving money is all the places you will have the opportunity to visit. Since you will more then likely be stationed on a ship for sea duty, you will be going to places others only dream about. Without spending money on the memories, like little trinkets, pictures and other stuff. Not to mention the things that will make your berthing livable for you. One thing to remember since you want to go to college, get the GI Bill, and talk to your recruiter about the Navy College fund. Try to be able to get both. Also get a rating (job) that you will enjoy and helps you in the future. You will receive college credit for a lot of the schools you take while in the Navy. Make sure your SMART (Sailor/Marine American Council on Education Registry Transcript) is up to date. There are also opportunities to get some of the class while on deployment. This can also help in not spending the normal 4 years in college. Just remember you are going to do a lot of changing over the 4 years that you enlisted, and do not over look the fact that it is not bad to stay in, even if it is for just one more enlistment.
Once you are actually in you will learn the resources that are there to help you in your future goals.
Good luck!!!

Answer 3

Your still going to spend some money. Going out to eat, galley food will get old after a while. As already mentioned in here you still have to pay for stuff like toiletries and other stuff like haircuts, unless you know how to cut your own hair; my suggestion cut it all off. If you live in the barracks; it'll save you some money by not paying rent, utilities. You don't have that much privacy and you will have room inspections at least once a week. If you have a car; you still have to maintain it, like oil changes, insurance, gas, etc... I agree with the first post if you can go to school while your in it will be a plus, it's 100% Tuition Assistance as long as you pass your classes with a C or above. This will work if your ship is dry docked or your on shore duty. You can take some classes while your on ship to during deployments. Saving can be done, if you really have discipline to do it. Hope this helps a bit and Good luck!!!

Answer 4

When I was in the Navy, I met a few people who did that. They stayed on the ship or submarine and did nothing except for the few free activities that are provided. They bought very few civilian clothes, and ate onboard the ship or sub.

Most sailors however get off the ship as soon as they can. Between being underway and standing duty, enough of your life is spent onboard. As soon as I had free time, I was gone, and that's where the money goes!

So, theoretically, you are correct. You could save a buttload of money.

However, in practice, a lot of sailors lived paycheck to paycheck. Even underway! Most surface ships have stores, and you can spend your money there!

BTW, most sailors don't need cars, depending on their location. If you spend most of your time underway on deployments or cruises, it doesn't make any sense to own a car, pay insurance on it, and have it sitting 6 months or more out of a year. For some though, if you happen to have a shore command, or are married, or even in my situation, where my submarine didn't make extended deployments, a car does make sense.

Also, beer adds up. You can't throw keg parties on base. Most beer is bought at the bar, $5 or more per bottle. That really adds up.

Answer 5

I spent 20 years in the Navy. While I sometimes wish I was more fiscally responsible, I have never regretted spending money to entertain myself while in some of the countries my submarines visited.

There are expences. You have to buy your own uniforms (there is a uniform allowance), sometimes your own food some utilites such as cable are not always paid for. Not all barracks have TV/radios/DVD either.

It is a good idea to make a budget and stick to it. Enroll in the GI bill, save money using the Thrift Savings Program, and buy some IRA funds. Leave some left over for fun stuff. Buy yourself a good used car cheap. Date another Sailor who understands you are saving money.

You should join the Navy Federal Credit Union. They have good rates, easy loans if you need them, and free online banking. Use the base activities such as the gym and MWR ticket office for cheap stuff. Take advantage of the tutition assitance program.

Four years is a long long time if you save all of your money and never have fun. You will need to live a little.

Ranb

Answer 6

Great answers here... I served for 15 years and left with $65K in savings

Things that BREAK new recruits: buying a car (killer loan), buying stereo / computer stuff, drinking and chasing tail (sorry ladies).

Things that MADE or SAVED me money:
1) Being Aircrew (flight and SAR pay)
2) Driving an OLD car
3) Quitting Beer
4) Standing others Duty

My BIG savings occured after my divorce (3rd enlistment)... I accepted a job NO one wants (ASWModule) and because the Navy was short-handed in that NEC I went from ship to ship to ship for 3 years... I was at sea the whole time.

Good luck and welcome aboard

Answer 7

Navy Sailor is right on the money with her assesment. (no pun intended)

I have said the same thing often enough. I had a roof over my head, 3 meals, and all I needed to buy was my toiletries and uniforms. I would buy a new uniform for major inspections twice a year.

I kick myself for not saving as I should have. Keep checking your LES (basically your check stub) to make sure they are taking out for your version of the GI Bill for college and any other allotments.

You can create savings accounts that do not allow you to draw out of them for a certain period of time without a penalty. That is to be incentive to save the money.

Good luck

Answer 8

You are 1000% correct, BUT nobody every does what you are talking about. Most young people and old for that matter in the Navy look at the Navy kind of like a welfare system. Yes we work everyday and earn our money, but most people blow their money on things they really cannot afford like luxury cars and SUV's. If you have ever been to a Navy base you will notice A LOT of really expensive cars driven by really young people. You can save a huge amount of money and if you save it in a high interest savings account like www.emigrantdirect.com you will walk away with a huge amount of money. The problem is most people don't know anything about saving money and would rather live for today instead of the future. Do what you are saying and you will be a superstar in 4 + years. BUY, don't save all that money and then blow the money on a stupid car. Buy a car that is two to three years old for about $10k or something and keep your money in the bank. Wouldn't you rather have a bunch on money in the bank working for you and for your future instead of a stupid car that really has no value except to the owner. Who are trying to impress anyway, it is for transportation! Also, go to college while on active duty and the Navy will pay for it with tution assistance and then when you get out you can get your masters degree with your GI BIll. OR stay in longer and get your Masters also while on active duty. All of this CAN happen if you are motivated and keep your goals in mind. Don't be like the 30 years in Master Chief that never saved two cents or took one college class. Those people always hustle a year before they get out to try to get the education they should have gotten years earlier. They get out and have no ability to get a good job because they wasted 30 years not doing anything for themselves.

So, if you live on the ship or in a BEQ, your food is taken care of at the galley on the base or the mess decks on the ship. No money needed unless you want to eat out once in a while.

You buy your uniforms in boot camp and are given some money each year to replace worn out items, so no money out of your pocket for work clothes.

Housing, you will be provided a rack on the ship or a BEQ room on base depending if you are sea duty or shore duty, so no money spent on housing.

Make a budget for yourself that outlines how much money is for savings and how much for fun stuff. Don't touch your savings and don't blow your money on stupid stuff. Each base has tons of free stuff to do to keep you entertained so if you are on a ship or on shore duty you won't have to spend too much money. There are free movies, PS 2's, internet access, gyms, MWR trips, lots of things to do for free.

I highly recommend you go to Barnes and Noble and buy a couple books written by SUZE ORMAN. She will tell you everything you can do to become rich given the plan you have for yourself. Listen to what she says and you will be a very happy camper! Good Luck!

Answer 9

It's up to you. You CAN save a lot of money if you want to.

You do have SOME expenses,personal stuff, haircuts, toothpaste, etc., but with discipline you can save up for a car.

Good luck! Anchors aweigh!

Answer 10

my answer is to go to school while in the service, you can earn money and be done with school in 8 years, good luck