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Military Pay Increase?!

January 3rd, 2013 at 12:06 pm


Well another day another dollar. But in my case it's an extra $175.03 per month gross.

I've been looking at the military pay raise charts. I knew about the 1.7% pay raise to the basic pay but found out less than a week ago about the raises that would affect Basic Allowance for Subsistence (BAS) and Basic Allowance for Housing (BAH).

This is great! This means that I can possibly either put more towards debt, savings or whatnot! I'm not sure how much this equals to after taxes but this is way better than any employer that I've worked for.

I have received two raises in the past year and I haven't even been promoted yet! (currently an E-3). Now I have to really look at things and figure out how to work it into my budget.

In the past my very small raises went into my pocket and seemed to have never existed. Now I want to respond appropriately. This will take some time for me to decide. What I really want to do is start contributing to my retirement. I already know that I want to put it in a Roth IRA although I'm not sure if I want it to be a TSP Roth IRA or one held with a bank.

There are also other things that I want to do such as participate in the 70.3 Half IronMan in 2014 (I need to purchase a bicycle for this because I no longer have one), go to the 2016 Olympics, do the Kona IronMan in 2015 or 2016 and purchase or build a home.

I could start my savings plans now for all of that as well as the things that are on my 2013 goals list (I'm thinking of adding these to my 2013 lists so that they can start getting funded). Or start contributing to my retirement earlier instead of waiting til I get home or both...

I will more than likely wait til I get back home to actually contribute to my IRA.

Posted in Budgeting, Debt, Personal Finance, Retirement, Saving Money, Extra Income | 4 Comments »

4 Responses to “Military Pay Increase?!”

  1. creditcardfree Says:
    January 3rd, 2013 at 12:59 pm 1357217987
    1357217987

    Check out paycheckcity.com to figure your net pay based on Basic Pay, then add in BAS and BAH. If you have SGLI, or other things deducted from your check, subtract those, too.

    The net amount may not be as high as you think because the payroll tax (FICA) increased from 4.2% to 6.2%. That 2% difference doesn't make that 1.7% raise worth much!!!

  2. Sian Says:
    January 4th, 2013 at 03:49 am 1357271372
    1357271372

    yeah, i just did that, but it's stil better b/c now it's a wash lol =P

  3. Jerry Says:
    January 6th, 2013 at 05:32 pm 1357493540
    1357493540

    I don't know how close you are to picking up E-4, but that would lead to a raise if you can achieve that this year, as well. Rank makes a huge difference in pay each month! Add to that the TriCare insurance and other benefits and it really adds up. Good luck with your excellent goals!
    Jerry

  4. Sian Says:
    January 7th, 2013 at 02:03 am 1357524225
    1357524225

    i'll pick up E4 anywhere between may and nov. it's about a $200 increase! =D that's what i'm really lookin forward to =P

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