Looking for a Little Financial Advice

[puck_11]

Not true. At least as recently as last year. I got BAH during OCS. We specifically got briefed that we WERE ENTITLED to BAH at OCS (if you were BDCP, that is). Ah.... yet ANOTHER perk of BDCP.... .

Really? A lot of us were BDCP at OCS and none of us got it at the time. Oh well

 

[BACONATOR]

Really? A lot of us were BDCP at OCS and none of us got it at the time. Oh well

IIRC, it was a relatively recent change at the time, so don't feel as if you missed the boat. I don't think it applied when you went through.

 

[Spekkio]

Really? A lot of us were BDCP at OCS and none of us got it at the time. Oh well

Yep, BDCP gets BAH at OCS. It was a pleasant surprise for me.

 

[Spekkio]

Couple thoughts... to get an ensign mobile for the sake of getting an ensign mobile is foolish. Nobody gives 2 shits about what you drive... unless its a chick car that is deserving of the questioning of your manhood.

I personally budgeted my car payment with only my base pay in mind. I don't think $250/month is that bad.

As for the lease option... I know people who have gotten out of their vehicle leases because they are going on deployment. I personally stay away from leasing because if you finance a vehicle for purchase, one day you will stop making payments and still have something where with leasing you are always making payments in order to keep something.

I don't understand the difference between making a $250 payment on a lease while you're deployed versus making a $250 payment on a financed vehicle while you're deployed (actually, if I were to buy the same car I leased with the same money I put down, it'd be closer to a $450 payment). As mentioned before, if you're the type of person to keep a car for 8-10 years minimum before you get rid of it, then financing makes sense in the long term. If you sell the vehicle any sooner than that, then lease the car. Considering that in a few years, the OP could be in a lot better shape with his other debts, and his base pay will be much higher, leasing can make a lot of sense here because it's likely that he'll want to trade in his eco box for something better at that point.

I personally would recommend buying a car thats only a year or so old. Let someone else take the big depreciation hit and you still have a vehicle in good shape for your own use. 1 year corporate lease turn-ins are pretty good IMO. Low mileage and regularly maintained.

Payments on a financed vehicle, even a 1 year corporate lease turn in, are always going to be higher than leasing the same vehicle. Just something to keep in mind.

 

[Cobra Commander]

I sat down today and looked at everything for my student loans, I had been putting it off because I knew it was going to be a huge number and this stuff is freaking scary!

I'm going to be paying about 400/month to my student loans, depending on what interest rate I lock into when I consolidate. The question is, will this be too much for me to handle as a new O-1? The base pay is around 2500 for new butter-bars, but I know I'm going to have a car payment and cell phone stuff to pay too...not to mention whatever rent isnt covered by BAH. Plus I'd love to be saving some money for the hookers and blow. :smgreen_1

I'm not looking for anyone to share specifics, but if you could look at my financial situation and compare it to your own when you were in my shoes, I'd greatly appreciate it. Disclaimer - I know I still have a long way to go until I'm an Ensign, just looking for your advice.

I wouldn't get too hung up about paying off your student loans right away. I don't have any, but I know that intrest on it is tax deductible and the rates are usually low. Just make sure money you would have used to pay off the loan goes into an investment vehicle that gives a better return than what you're paying on the loan (read: arbitrage). Doing that will help you maintain a liquid supply of cash and can help you pay off the loan faster.

I'm reading the book "Millionaire by Thirty" right now and it's got some good advice about building wealth and taking advantage of tax shields and maintaining liquidity. A lot of it deals with how to use real estate to do that, but it's definitly a good read for the financially abitious.

 

[Junkball]

Imports

Yes, buy a Honda or Toyota Camry... if you're THE 40-year old ensign. Take a look at Nissan. I've had an '02 Maxima SE for a few years now, and the car is bulletproof (and FAST!!)

 

[FLYTPAY]

I still try to live on O-1 pay.. But I'm single, and I have a couple more toys these days.

I'm sure she would love being called a toy!.....I'm talking about your Audi