Ensignhood, debt, cars, and family help therewith

[picklesuit]

One thing that may help him as well when he gets to his first command is to go to the Navy Marine Corps Relief Society and have them help him with a budget. They have some very good financial counselors willing to help you out. They helped me out...I graduated with $52K in debt and married into another $65K of college debt. I am the sole provider and have about 700/month for school loans to repay. That is on top of the 400/mo for a car and 440/mo for the Ensign Loan from USAA. They helped me figure it out on O-1 pay and it only got easier when I made O-2.

And desertoasis has a great idea about buying a truck in cash. That is how I got my vehicle and it means one less car payment a month.

 

[FlyBoyd]

...400/mo for a car...


And desertoasis has a great idea about buying a truck in cash. That is how I got my vehicle and it means one less car payment a month.

If he has a car that runs...drive it 'til the wheels fall off. While I understand the calling of the Ensign mobile, it really is a waste of a big portion of your take home pay, especially if you have a safe/reliable car already. If he doesn't have a car then don't (let him) go overboard on his first car. FWIW, I wish I never got mine.

My 65K debt in 1994 would be near 90K in today's dollars. I lived frugally for a while, but I didn't really want for anything.

On a similar note...make sure he is schooled on investments i.e. IRAs, TSP, the idea of getting started early in life, etc.

Good Luck!!

 

[CAVU]

It's a relief to know that he will make enough money to cover moderate expenses if we need to factor in student loans. Thanks HAL Pilot for the link to the military pay explanations. I was able to find the base pay for O-1 that you referenced. It's more than I had realized.

Daisy, Your son/mid is a very lucky person and he will not know how lucky he is until he has some life experiences under his belt and his child is entering his teens. I know that your original question is focused on a car, but I thought I would offer some additional thoughts for your son to consider.

The poster who mentioned Navy Relief for a budget is spot on. I would offer that he needs to work his budget out right now and not wait until he is commissioned. The advice I would offer is to watch out for:
- Ensign mobile syndrome. Too much car payment, too expensive to insure, and/or too much upkeep. Using Consumer Reports, he should focus on a reliable inexpensive car to own during his first 4-6 years. Save the rest. It is a great time to be buying a car (a true but sad statement). http://www.checkbook.org/ is a great place to use, they are nonprofit and because they induce a bidding environment, your son will know that he didn't over pay.
- Gadget syndrome. Big screen TVs, high fidelity stereos, high performance gaming computers, etc
- Credit syndrome. Accepting credit card offers and maxing out the debt
- Signing contracts without base legal taking a look first. It's free.
- Don't get in a hurry to get rich quick.

Near term things for him to do:
- Build up a "life happens" savings. Enough to handle the shock of a couple of insurance deductibles, emergency airline ticket for a funeral, major appliance failure, etc. About $2000.
- Start laying in a savings plan that eventually gets him about 3-6 months of living expenses. Anything can happen.
- Have two credit cards. One from USAA and one from NFCU, but try and pay cash for everything.
- USAA starter loan is great, but he really needs to plan out where every dollar will go. A lot of the excess cash from the conservative car purchase can go towards the first two items.

USAA, Navy Federal Credit Union(NFCU) and Navy Mutual Aid Association organizations that I trust and know. They are focused on the success of the membership as a whole and the individual.

Based on my experience to date, I think we the Navy could do a better job of preparing our mids for what I would call the reality of life. There were always a few mids I didn't worry one bit about and then there were a few that I worried a lot about. The rest in the middle (the majority) listened, accepted a few of the recommendations and learned the hard way on the others. That's life. During my time as a ROTC instructor, once a week during the last semester, I pulled the graduating seniors into a 30-45 minute discussion:
- Here is gross pay and net pay. Real (as opposed to college) living expenses, etc
- Cautions and strategies for purchasing cars.
- Watch out for credit.
- Travel allowances to your first command for first time commissionees,
- Uniform purchase timing

Just my thoughts and thanks for supporting your son's decision to join our Navy.

Once he becomes a member of NFCU, he can sponsor you to join too. https://www.navyfcu.org/

Also, an organization for you: http://www.bluestarmothers.org/mc/page.do

 

[BarrettRC8]

The best piece of advice I can tell you to pass on is to learn to cook. It might seem like a silly thing to advise, but buying ingredients and cooking for yourself, instead of buying prepared food like Stouffers stuff (and fast food as well) makes a HUGE difference in your month-to-month expenses. The other piece of advice is to not indulge in the frivolities of the newfound income...a big screen TV might be fun when you first get it, but when you're ears deep in IFS and API studying, it won't get used much (or shouldnt, anyway)

I could not disagree more! How else can you ride a motorcycle when its raining outside?!

 

[MasterBates]

Dude.. Just ride your bike in the rain. That's what FrogToggs are for (or any other brand rainsuit).

 

[BarrettRC8]

Dude.. Just ride your bike in the rain. That's what FrogToggs are for (or any other brand rainsuit).

Unfortunately mine came with DOT race tires. Precipitation and these boys don't mix well.

 

[Pags]

If he has a car that runs...drive it 'til the wheels fall off. While I understand the calling of the Ensign mobile, it really is a waste of a big portion of your take home pay, especially if you have a safe/reliable car already. If he doesn't have a car then don't (let him) go overboard on his first car. FWIW, I wish I never got mine.

My 65K debt in 1994 would be near 90K in today's dollars. I lived frugally for a while, but I didn't really want for anything.

On a similar note...make sure he is schooled on investments i.e. IRAs, TSP, the idea of getting started early in life, etc.

Good Luck!!

I'll second this. I kick myself a bunch for not just buying a 6yr old Honda or something for the first few years.

Starting the investments early is a great idea. Auto withdrawal is great and you'll never miss the money. And then you won't be tempted to blow it all on gadgets that you don't need.

The "life happens" saving acct is also a must. I'm glad I had it when the Navy screwed up my pay a few times. Plus, it's never a bad thing to be able to have easy access to several thousand in cash (as I found out during a re-fi).

 

[FlyBoyd]

Daisy, Your son/mid is a very lucky person and he will not know how lucky he is until he has some life experiences under his belt and his child is entering his teens. I know that your original question is focused on a car, but I thought I would offer some additional thoughts for your son to consider.

The poster who mentioned Navy Relief for a budget is spot on. I would offer that he needs to work his budget out right now and not wait until he is commissioned. The advice I would offer is to watch out for:
- Ensign mobile syndrome. Too much car payment, too expensive to insure, and/or too much upkeep. Using Consumer Reports, he should focus on a reliable inexpensive car to own during his first 4-6 years. Save the rest. It is a great time to be buying a car (a true but sad statement). http://www.checkbook.org/ is a great place to use, they are nonprofit and because they induce a bidding environment, your son will know that he didn't over pay.
- Gadget syndrome. Big screen TVs, high fidelity stereos, high performance gaming computers, etc
- Credit syndrome. Accepting credit card offers and maxing out the debt
- Signing contracts without base legal taking a look first. It's free.
- Don't get in a hurry to get rich quick.

Near term things for him to do:
- Build up a "life happens" savings. Enough to handle the shock of a couple of insurance deductibles, emergency airline ticket for a funeral, major appliance failure, etc. About $2000.
- Start laying in a savings plan that eventually gets him about 3-6 months of living expenses. Anything can happen.
- Have two credit cards. One from USAA and one from NFCU, but try and pay cash for everything.
- USAA starter loan is great, but he really needs to plan out where every dollar will go. A lot of the excess cash from the conservative car purchase can go towards the first two items.

USAA, Navy Federal Credit Union(NFCU) and Navy Mutual Aid Association organizations that I trust and know. They are focused on the success of the membership as a whole and the individual.

Based on my experience to date, I think we the Navy could do a better job of preparing our mids for what I would call the reality of life. There were always a few mids I didn't worry one bit about and then there were a few that I worried a lot about. The rest in the middle (the majority) listened, accepted a few of the recommendations and learned the hard way on the others. That's life. During my time as a ROTC instructor, once a week during the last semester, I pulled the graduating seniors into a 30-45 minute discussion:
- Here is gross pay and net pay. Real (as opposed to college) living expenses, etc
- Cautions and strategies for purchasing cars.
- Watch out for credit.
- Travel allowances to your first command for first time commissionees,
- Uniform purchase timing

Just my thoughts and thanks for supporting your son's decision to join our Navy.

Once he becomes a member of NFCU, he can sponsor you to join too. https://www.navyfcu.org/

Also, an organization for you: http://www.bluestarmothers.org/mc/page.do

Daisy...best post yet. I spend time talking with the youglings about this topic whenever I get the chance. I wish I had known better 20 tears ago.

Moderators...this should be a sticky for the newbies.

 

[scottwith1t]

and if he does happen to get an ensignmobile stay away from the BMW's and corvettes, some days it starts to look like a new car lot.

 

[Elegant Emily]

While we're discussing this, is there any real benefit to having a 'relocation friendly' ride? Like a truck or SUV?

I think yes.
That way it's a lot easier to do a partial DITY move, take some things with you... things you don't want the movers messing with and things you'll need as soon as you get where you're going.

If this gives you any perspective: Our last move had us living in the CBQ for 10 days before moving into our house, and then we didn't get our HHG for another week after that... so glad we had brought more than just some clothes and towels with us! (We filled our Jeep and truck with things we were moving ourselves.)

I think in most cases a partial DITY is the way to go.

 

[Pags]

While we're discussing this, is there any real benefit to having a 'relocation friendly' ride? Like a truck or SUV?

On the flip side, I say no. I'm lazy and hate moving. I figure if someone's gonna break my stuff, it might as well be the movers so I didn't have to break the sweat and then I get reimbursed. If i break my stuff it's too bad so sad.

I tend to think that the monetary benefits of a dity are more than outweighed by the fact that you have to move all your own crap.

 

[MasterBates]

Yep. Most trucks/truck based SUVs can easily pull a 5x10 U-Haul trailer, and most full size ones (1/2 ton and up) can pull the 6x12 no problem.

Take the stuff you need ASAP, and any heavy, dense easy to load items. Also crap you don't trust the movers with (guns, ammo, tools, heirlooms).

Easy way to make a few thousand per move, and you were driving there anyways if it was a CONUS move.

Alternate method- Rent a car dolly or car trailer, stuff the car full of junk leaving just enough room to get in and drive it on/off the trailer. You only get paid for the stuff IN the car (using car as DITY weight is a big no-no) but you only have to drive 1 car.

When I had a truck and a 68 Mustang I would put my motorcycle and car on a flatbed construction trailer (I owned it), dirtbike and other stuff in the bed of the truck, and jam the car full of all my clothes, TV, etc.

I have only done 1 Partial DITY move, and that was because I was moving on short notice, and had to get my stuff packed out of "hostile territory" (aka, my house that my estranged wide was living in) and it was easier/better to have the govt crew there with me and a LCDR from my squadron than try to pack out and move with just me and a friend having to deal with her.

Of course, now I just stuff the PUMA to the gills with my stuff when I move now.

 

[nittany03]

On the flip side, I say no. I'm lazy and hate moving. I figure if someone's gonna break my stuff, it might as well be the movers so I didn't have to break the sweat and then I get reimbursed. If i break my stuff it's too bad so sad.

I tend to think that the monetary benefits of a dity are more than outweighed by the fact that you have to move all your own crap.

This. I've heard of people making piles on DITYs, but other than the guys who moved me to Meridian being incompetent boobs, I really haven't had too much of a problem with Navy movers.

 

[MasterBates]

I made over $8k after expenses for my DITY move from Krock to Norfolk. I maybe had an actual day of work, and had to buy a couple friends dinner. I'll work my ass off for 1 day for $8k. That's just me.

And the DITY move insurance can now cover you if you break your stuff.

 

[Elegant Emily]

So.......it doesn't hurt to have a truck/SUV? I am just trying to plan out what I am going to do. My sister, who is still in HS needs a car, so I am trying to figure out how to get her something while also having something for myself that is practical. Right now I drive a small 4 door subaru.

Why would it hurt to have a truck/suv?

The only thing we're dealing with now is that we have 3 cars that are all 2 doors... which is annoying. If you get an SUV, get a 4 door if you ever plan to have anyone ride in the back.

Are you buying your sister a car? I don't get it... what?