Being young and in the military has its advantages. One of the biggest rewards is a powerful force that will almost ensure that you can become a young military millionaire. There are simple steps you can take when you're young that will help you harness the power of this force; making becoming a military millionaire a breeze.
Attention young military personnel. You can turn that military paycheck into a million just by following a simple, consistent, investment plan. Just by automatically investing on a regular basis you could be on your way to an early military retirement. For example:
-A $ 174 invested monthly starting at 18 years old could make you a young military millionaire by age 53.
-A $ 701 invested monthly starting at 18 years old could make you a young military millionaire by age 40.
Knowing how to handle your military money gives you advantages that the most people miss out on. You can afford an early military retirement just by following a simple investment strategy. Starting an investment plan young may be enough to ensure you become a young military millionaire.
Because you have the power of compounding interest on your side it's easy to become a young military millionaire when you start young. Compounding interest is defined as the interest earned from the initial money you personally invested from your military money plus the interest earned from the amount your investments have already returned. To clarify, the money that you already made from your investments starts to earn you money. That means that every year you are making money off money your investments have already paid you.
By investing your military paycheck at a young age you are able to fully harness the power of compounding interest. This is due to the fact that your investments are earning you a return on the money already paid to you from the investment. The younger you start the faster and larger your investment account may grow. That's why investing while you're young and earning a steady military paycheck gives you a huge advantage.
1) Save Money. The first step on the road to becoming a young military millionaire is to set up a simple savings plan. Pay yourself first by setting money aside into an investment before you start spending your military money. The habit of paying yourself first will benefit you throughout your life and will help you retire young.
2) Invest Young. You may not of been taught how to invest in high school but don't let that hold you back. There are simple investments available to the beginner investors that will get allow you to invest your military money young.
The stock market offers some investment vehicles that are perfect for the new military investor. There are lower-risk investments that offer the potential for long-term gains that may help you to put your military money to work.
One type of investment, known as broad based market index investments, may offer you a simple way to get your military money working for you. 'Broad market index investments' are simply investments in the overall market like the NASDQ 100 and S&P 500. To illustrate, one S&P 500 index traded fund will allow you to own a portion of all 500 stocks in that index. The S&P 500 index is one way for the new military investor to profit from the stock market without having to have a lot of experience.
3) Consistent Investments. There is a basic military investment technique called 'dollar cost averaging'. A dollar cost averaging plan is simply buying a fixed dollar amount of your broad market index investment at the same time each month. Your bank and brokerage firm can be set-up so it automatically invests the amount you want at the same time each month. Once this structure is set up you can sit back and just review your monthly statements. With a consistent military investment plan you could reap huge profits over a long-term.
The basic investment method discussed will get your military money working for you. If you're looking to become a military millionaire young there are other ways you can increase your returns. The investment vehicles discussed below take more effort however you will be able to reach your military millionaire status sooner.
5. Real estate. Real estate investing can be credited with making the majority of young millionaires. It gives you the power of leverage so you are making money of money the bank loaned you. When done right you could expect to double your investment each year! Just by purchasing real estate while you're young could easily make you a young military millionaire.
The military offers many benefits that will allow you to become a homeowner. VA loans allow you to borrow 100% of the purchase price which means you won't need money for a down payment in most cases. Combine that with BAH (Basic Allowance for Housing) for civilian housing and you can have your mortgage payments paid for.
This is a huge benefit because you purchase a $ 100,000 home your property could be valued at over $ 570,000 in 30 years. The best part is using BAH you could of not even made a payment with your own money.
6. Entrepreneurship. Being in the military you can start a part-time business that earns you an extra few hundred a month or one that surpasses your military paycheck. Either way it can help you to become a young military millionaire or just added another income so you can invest more. There are also tax benefits available to business owners that will keep more of your military paycheck money in your pocket.
Becoming an entrepreneur can help you become a young military millionaire and give you the luxury of being able to retire young.
The sooner you start investing the sooner you can become a young military millionaire. Start now and the take steps to become a young military millionaire today!