Why are so many junior enlisted families broke? (Air Force, credit card, loans)
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An E-3 with 4 years in makes a hair over 2k a month. If he/she has a family of 3 and is from one of the many states with no income tax for military he/she will pay zero in income taxes and this will bank 1850 a month after FICA. Add in BAS and they are pulling in $2,200 each month, with housing covered.
So how are they broke?
I was never broke when I was enlisted, and now that my spouse is in the military we are still never broke:
Food: 600
Entertainment: 400
Spending: 300
Gas: 200
Cellular: 150
Car Insurance: 120
Internet: 60
---------------
Total 1830
There's another $400 left over after bills and play money, that's almost 5k a year! (Yes that's my real budget, two old (but safe) cars, and another $2k in savings a month, but still doable on an E3 salary (although they can't save as much, they don't have to live 1st-15th-1st).
What's the issue? Why are so many young enlisted families broke?
Well, the Air Force is including finances in their fit reps, bases have been going after payday lenders for years, and the general impression that I've gained over the last 12 years (everyone sees it as a pay issue when it's a spending issue).
An E-3 with 4 years in makes a hair over 2k a month. If he/she has a family of 3 and is from one of the many states with no income tax for military he/she will pay zero in income taxes and this will bank 1850 a month after FICA. Add in BAS and they are pulling in $2,200 each month, with housing covered.
So how are they broke?
I was never broke when I was enlisted, and now that my spouse is in the military we are still never broke:
Food: 600
Entertainment: 400
Spending: 300
Gas: 200
Cellular: 150
Car Insurance: 120
Internet: 60
---------------
Total 1830
There's another $400 left over after bills and play money, that's almost 5k a year! (Yes that's my real budget, two old (but safe) cars, and another $2k in savings a month, but still doable on an E3 salary (although they can't save as much, they don't have to live 1st-15th-1st).
What's the issue? Why are so many young enlisted families broke?
As I was told by some soldiers, young enlisted soldiers with families are broke because people will enlist into the military at age 18 after high school and suddenly find themselves awash in money, comparatively speaking. They live in the barracks, get pretty much everything provided for them, and they have $1,500 or so every month to do whatever they want. They will tend to splurge on whatever they want, and remain in the mentality that they can do so even when they have families.
I guess this depends on where your base is. If you are station in Camp Pendleton, well, you live in SoCal, and it is very expensive there. I doubt your budget would even work there.
It isn't just junior enlisted either. So many families I knew had 15 years in and too the redux to pay off credit cards, car loans, etc... and blew the rest on brand new TVs, furniture, and other toys. They will figure out that they should have saved that money come retirement time.
I guess this depends on where your base is. If you are station in Camp Pendleton, well, you live in SoCal, and it is very expensive there. I doubt your budget would even work there.
But then they receive COLA (cost of living adjustment) along with BAH and BAS.
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