Working With an E-2 Budget:

After taxes, an E-2 makes $19,621 per year. This can be divided into $1,635 every month to work with!

Career Starter Loan

If you do not absolutely need the career starter loan, please, avoid it.

Your Immediate Needs:

Because your first immediate need is transportation, you can afford a $7,000 car with a 36 month payment plan!

Priorities:

First, you want to begin building your emergency savings in an Emergency Fund. This money is liquid cash that is immediately accessible in the event of absolute need. Over time, you should aim to grow this emergency savings to 3-6 months of living expenses, and replenish it if you ever use it.

Second, you want to contribute 5% of your Base Pay to your TSP. The government will match your contribution up to an additional 5%, so this is free money!

Third, you want to pay minimums on all debts, and make extra payments on all high interest debt. Ideally, you graduated Recruit Training debt free.

Finally, you want to contribute $500/month to a Roth IRA. This step alone can make you a millionaire in retirement if you consistently contribute the maximum $6,000/year!

Enjoy the Rest!

Your leftover $303/month are yours to freely spend/save/invest as you choose. This may be restrictive now, but it will set the foundation and discipline necessary to achieve millionaire success!

The Benefit

These are the building blocks for financial success, and you do not have to be considered “cheap” to achieve them! There is a wide variety of nice cars you can purchase for ~$7,000! 

Bonus: You are on track to be a millionaire, so you can start working on that millionaire mindset!

The Proof:

Clearly, it is very possible to set yourself up for millionaire success on E-2 Base Pay! 

Setting up the foundation may not be glamorous. It will require financial discipline and sacrifice in the short term. In the long term, you will be way better off!

Bonus: You won’t be an E-2 for very long, and will have more expendable income as you progress! 

Tips

  • Budgeting
  • Saving Money
  • Credit
  • Debt
  • Loans
  • Investing Money
  • Car Buying