The Importance of Budgeting and Career Planning
Understanding budgeting, its elements, and usefulness is essential for everyone starting their career path. Researching in advance the potential job a student would like to have after graduation can create more realistic budgeting expectations and provide the foundation for the plan of major purchases in the future. In my case, I am currently working as a food runner for The Capitana Hotel in Key West. Still, after graduating next year, I plan to join the military.
Researching Future Salary and Financial Expectations
Firstly, researching my potential salary and expenses provided a clearer view of my future financial situation and helped me decide about my first major purchase. Thus, according to a recent article by Foster et al. (2022), entry-level army privates earn approximately $24,648. Compared with my current situation, the job in the military can be similar in many ways since it implies the absence of expenses for accommodation and food.
Monthly Expenses and Opportunities for Savings in the Military
The monthly expenses in the military can include cell phone bills (approximately $60 with a discount for active service members), food, and entertainment, which can range from $50 to $300. Therefore, the lack of monthly expenses such as rent, utilities, and groceries associated with military work presents a significant opportunity to save and accumulate financial resources.
Planning the First Major Purchase: Buying a Car
Furthermore, I decided that buying a car would be my first major purchase a year after enlisting in the military. After researching the military salary, I learned that many soldiers use military discount programs that reduce prices for relatively new car models (Barnhill & Tennyson, 2023). Thus, buying a car with a significant discount can present a good financial investment opportunity.
Getting a car loan and making regular payments of $750 will allow me to be more organized and motivated in setting a significant part of my salary ($800) as monthly savings. The purchase will also help me be more careful with other monthly expenses, such as cell phone bills and entertainment. Therefore, my personal budgeting goal in making the first significant purchase after getting a job in the military is to develop a sense of responsibility and improve my credit score.
References
Barnhill, J., & Tennyson, T. (2023). Military discounts on cars, trucks, and other vehicles. The Military Wallet. Web.
Foster, C. (2022). Military pay: This is how much US troops are paid according to their rank. Insider. Web.