7 Steps to Being a Military Millionaire

Updated : Sep 05, 2019 in Articles

7 Steps to Being a Military Millionaire


Hey everybody, it’s
Rich Carey from Rich on Money.com and in today’s video I’m gonna talk about
the seven steps to make you a military millionaire, but before I get to that
first let me talk about Who I am again my name is Rich Carey from Rich on Money.com
and I have a website rich on money.com
and that’s the website where I talk about real estate investing I have a
conservative approach to real estate investing where I like to make sure that
you have enough downpayment to make sure you have your debt paid off I like
to make sure that you don’t go crazy with getting as many loans as you can as
much leveraged as you can and get rich fast you know and and leveraged
to the hilt I have done something pretty interesting I have done a lot of long
distance real estate while being overseas most direct career and all my
houses are paid off and that’s a probably result of my kind of careful
saving and investing over my career so I’ll get to that if you like what you’re
hearing today I love it if you gave me a thumbs up if you gave me a subscribe and
if you shared this shared this video with others so please do that comment
tag and do all that cool stuff so that further ado we dive into the important
stuff today seven steps to be a military millionaire let me get into the meat of
this today this was actually one of my most popular posts on Rich on Money.com my I mean I’m looking at it over here and this post has been seen
actually millions of times oh wait a second no not millions of times this
post gets seen tens and tens of times a day which is pretty impressive but I
mean all joking aside it gets seen more than any of my other posts it’s a very
popular post now I have a real estate website but there’s just something of
this post I think it’s the SEO people searching for military millionaire
people wanting to find out how to make money while they’re in the military but
people just love this so it’s become a very popular post and so that’s what I’m
going to talk about today I’m gonna get into this one thing that people think of
they’re in the military and they’re trying to find a way to make money and
there’s like these quick ways to do it you know certainly with real estate you
can find these gurus that are like and you don’t make a lot of money you don’t
have money saved up you have bad credit you know you want to have money for a
down payment like no problem you know buy this really cool buy this program of
mine and I’ll show you how to make tons of money using other people’s money and
there are other programs like that as well these gurus are selling you a you
know they’re selling you a something that’s not gonna work and you’re just
gonna get ripped off and you’re gonna get left holding the bag you know and
usually these things start off as a free seminar and then you end up havin to
maybe pay for a book eventually you’re paying for a course it costs a couple
hundred bucks and then eventually once you take that course you’ll find out
that they want you to spend you know ten twenty thousand dollars for the actual
deal and in the end they’ve made a lot of money and you haven’t made jack so
let me get to the meat though how have I done it I’ve been successful you know
through a I’m an officer in the military and I’ve been successful making enough
money in my first 15 years so to reach I guess you would say millionaire status I
know a lot of other people in the military that have done that I shouldn’t
say a lot I know other people in the military that have done that certainly
in the blogging world I can think of Doug Norman who is in the Navy and he’s
a blogger at the military guide who was also done this I think if somebody named
Curtis Riggs who an enlisted guy who think just recently retired and he’s
sort of a guy that started the military influence influencer conference he buys
and sells websites he’s like a big entrepreneur but he did a very good job
reached millionaire status and Ryan Ghana the military guide I know I’m
sorry I think I’m screwing this up Ranga now
the military wallet is his website also millionaire status through what he did
on the side anyway let’s let’s move forward what are the
steps seven steps to being a military millionaire and I want to talk about
them all a little bit this is all on my blog as well seven steps have also got
like links to other articles of mine and they go on to more explanations of
what’s going on in the blog as well again if you’re liking this stuff give
me a thumbs up if you’re on YouTube subscribe you know like you to comment
where you’re watching this from if you want to tag a friend you think this
would be useful for them please do that as well cut your expenses that is the
very first thing that you’ve got to do you’ve got to cut your expenses you have
to learn to live frugally and this is something that is change and mindset for
a lot of people the things that I think are first no big house right no new cars
you don’t need a new iPhone every time one comes out you don’t need Harleys
boats timeshares oh my god time shares are the worst thing in the world I can’t
think of a worse waste of money than a timeshare expensive vacations expensive
hobbies which I would argue were things like boats and and Harley’s
unfortunately for you hardly lovers you got to get rid of those things and you
gotta get your expenses way down and this mindset of like you need to find a
way save a large portion of your income and
be able to put that into savings be able to pay off debt which I get to later and
do all these other things but cutting your expenses is it’s something that
I’ve done my entire career it’s something that anybody who had ninety
five percent of people who reach millionaires to has status on their own
are going to use this route it’s either that or like you know or you’re a rapper
one or the other cut your expenses or become a rapper in
which case you can have the fancy car and not worry about your expenses and I
tried going the rapping route and it actually didn’t work out for me you can
like you have two choices and how to do this look rich now and be poor later
that’s what most people in the military do or most people really in the in the
world do or I can like look look poor now but be rich later that’s kind of
what I’ve done and that is what a lot of people in this financial independence
retire early fire movement are doing cut corners now save money now cut expenses
now put that money towards your future the Jones is around you will kind of be
like what are you doing how come you’re not living it up but you know you’ll
have a last laugh someday number two step number two number one must cut your
expenses number two increase your income these two things go hand in hand what I
want to say about cutting your expenses versus increasing your income is that
there’s a big difference between the two cutting your expenses has a limit you
can only cut your expenses so much you can only cut your expenses down to zero
and obviously you can’t go to zero because then you couldn’t pay rent and
you couldn’t eat you can only cut your expenses until they hit the floor and
then like you’re screwed an income does not have a ceiling now I
mean obviously you’re not going to be a multi-billionaire probably
but I mean there isn’t there isn’t a you know a ceiling I mean you you you can
only cut things so much but you can always find a way to increase and that
could be like you know get creative I mean you could increase to any number
what you need to do is cut expenses and increase income you need to grow this
gap as much as you can you can’t like just do this one and not do the other
one are you just not gonna get to millionaire status anytime soon
especially in the military because we’re not exactly like the you know highest
paying career foot in the world so you know start a home business send your
spouse to work did I say send I didn’t mean to say that ask your spouse to work
take on a part-time job ask your spouse so she wouldn’t mind taking on a
part-time job consider a different career if that’s going to work for your
personal situation my you know sort of side hustle or part-time job was
flipping houses I I figured out how to flip houses in my spare time weekends
nights whatever and I made money doing that for several years I’m not gonna be
able to cover that in this video that will be in other videos that’s on my
website as well increase your income grow the gap eliminate debt is number
three number three eliminate debt you have got to get rid of your debt debt is
a horrible thing it kind of goes through this whole it goes to the first two
steps right it goes with cut expenses and increase your income you’re cutting
your expenses you are not adding debt you are you limiting your debt get rid
of your credit card debt pay it off get rid of your car loans either sell those
expensive cars or pay them off or you know I’d sell them and get more
reasonable cars I get older cars that you could
cash for or you could pass in a relatively short amount of time you know
pay off your debt pay off the serious debt get rid of the high levels of debt
first the high levels of interest credit card debt card that eventually moved to
what is that called your student loan debt ah student loan debt I wouldn’t
necessarily call that good debt I’d call it necessary debt Dave Ramsey’s Total
Money Makeover is awesome for debt it’s a little like you know a ten step system
for getting rid of debt I like it it was a great book when it comes to getting
rid of debt I don’t think he’s great for necessarily steps beyond paying off debt
but he was great for getting rid of debt so I’m not gonna sit here and explain
dead all day if you want to read that book or like google it or there’s lots
and lots of blog posts about getting rid of debt it’s not that fun to talk about
that all day number four maximize your retirement accounts right you’re paying
off your debt now I need to maximize you need to make sure you’re maximizing your
retirement accounts Noda know what I haven’t said like where to put your
money in stocks yet I haven’t said like buy a bunch of real estate yet you can’t
do these things yet you’ve got to take care of all these these four steps that
I’ve talked about so far you got to do these things first you got to knock
these things out first before you can dive in the fancy stocks and dive into
doing crazy stuff with real estate that you that you want to do because you want
to get rich you got to take care of all the simple basics you got to get into a
financially good place before you can mess around with stocks or real estate
you got to take care of your retirement accounts first that was way more
important anything else Uncle Sam will let you cheat on a certain amount of
taxes every year he does that in the form of 401k or TSP for military and
this year it’s eighteen thousand five hundred dollars that you’re allowed to
contribute to that I want you to contribute as much hopefully you can max
it out if you’re further along in a career I mean if you
if you’re brand new you may not be maxing that out yet but get to the point
where you max out your TSP at 18,500 moving to 19,000 next year max out your
IRA for yourself 5500 I think going to 6,000 next year max out your IRA for
your spouse don’t forget about that whether she’s working or not she has a
separate one your 5500 she’s 5500 for those those are three different things
your IRA then your I’m sorry your TSP and your IRA then her IRA she gets one
where that she’s working or not don’t forget about her
you need to max those things out first okay before you do anything else this is
the order I’m talking about it’s very important these retirement accounts come
before normal investments and they come before real estate all right
make sure you do this number Five’s kind of a weird one I’m gonna call it
optional I’m gonna brag and say that I did it it’s not necessary to become a
millionaire it’s debatable but number 5 is pay off your primary residence ah pay
off your primary residence are you crazy yes I am I paid off my primary residence
it’s like the coolest thing I ever did in my life it is not something that you
must do I can tell you that having my primary residence paid off and on top of
that having 20 single family homes paid off that are all my investment
properties you’re insane is really really cool because I’m like a
year-and-a-half mark from retirement now that makes for a pretty cushy retirement
it is by no means necessary in fact some people would argue that you’re better
off that you would build well faster by having loans on those properties instead
of paying them off and that would allow you to like invest the money that you
would have used to pay them off to pay them off like quicker and that money
would have compound and faster that way so the jury is out on which
one of those methods is better but I paid mine off and I can tell you from a
psychological standpoint there is nothing cooler than knowing that your
that your massive mortgages are not there anymore
optional step number five moving on by the way I’m on the website this version
that that just has tens and tens of people bring it every day the seven the
seven steps to be a military millionaire has lots of links to two other posts of
mine and other people’s posts that gives a lot of very relevant information that
you would want to read if you want to be rich Sunday Rich is a relative thing
number six traditional investing so number four was
maximize retirement accounts and then the not optional payoff primary
residence now it’s traditional investing what is traditional investing well
there’s a ton of different ways to do traditional investing the way that I’ve
done it my whole career which is this very very very simple I’ve just bought
S&P 500 index fund simple I did it in a USAA with you was just USA which I’ll
log you actually their fees are a little bit too high so shame on you USAA I want
you to fix that you should probably use a Vanguard or Schwab they’re a little
bit better for fees or fidelity sorry fidelity is also very good and I’ve got
a post that talks about which ones have the best fees that you could you can go
read but you just you get a traditional brokerage account which is an account
that allows you to put investments into it not tax not IRAs not these tax
deferred investments but normal investments in it like stocks and mutual
funds get a brokerage account pick a company for it fidelity Schwab Vanguard
USA has kind of high fees I want them to fix that I think they might even be
getting higher based on some stuff to happen recently and do some traditional
investing in there if you don’t want to do crazy like me like just picking one
mutual fund and sticking every one mutual fund there are a bunch of
different ways that you can invest your money I have a link to a hundred and
fifty portfolios better than yours and it’s like this really cool post that
somebody did where they just tuck there’s like you know 150 different ways
to invest your money 150 different like ways to split it up between between
different kinds of funds and different methods and why those methods are used
recommend checking that out if you’re really not sure what route to go you can
find something that suits you better than just having one fund like I do that’s kind of all you need those six
steps and one of them is optional is all you need to become a millionaire in the
military if you’re willing to do those things which not everybody’s willing to
do maybe it you just want to go about your life you know doing the consumer
thing and buying and buying and charging credit cards and taking vacations and
keeping up with the Joneses and having big houses and lots of furniture and you
know having your fun but of course we’re tiring with lots of debt and then having
to work until you’re you know 89 years old but these are the only steps that
you need you know one through six and number five is optional hang out for
mortgage but I have seven steps in here and number seven is buy rental
properties and that’s kind of the one that’s made I’m gonna say it’s made all
the difference for me but I would say that it’s probably accelerated just
because I think I did a good job at it and it went well for me it accelerated
my growth and how much money I’m making and I enjoy it so much I love real
estate it has to be done wisely and it is easy to screw up and a lot of people
do it wrong I’d argue that most people in the military approach real estate
wrong and I have a link in on my on this particular blog post that I want you to
read called real estate mistakes military members should avoid because I
want you to avoid the mistakes that I see people in the military always make
with real estate but I recommend that after you’ve after and if
you do all the things that I’ve listed you consider real estate on top of all
of this as a way of diversifying and/or accelerating your you know your
portfolio and your money and your your way to but to become a millionaire or
maybe a multi-million a multi-millionaire and a way to ensure
that you’ll be able to actually retire after your career in the military and
not have to go to work again you know for a different company
or for the military again as a civilian and work until you’re 89 years old maybe
that’s an exaggeration maybe until you’re 79 so if you enjoyed this today
again I’d like you to right now can you like thumbs up thumbs up thumbs up
hearts subscribe to this if it’s on youtube like you to subscribe and tag a
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also helps get get this the word out to others it helps the that sort of the
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thanks for watching and hope you enjoyed this and rich on money signing out later

8 Comments

  • Rich – another great video filled with actionable items. Have a clarifying question about Steps 4 (Max retirement accounts), Step 6 (Traditional Investments), and Step 7 (Rental Investments). After you have max'd out retirment accounts, are you saying to invest in a traditional investment (i.e taxable account) before investing in real estate? For example, let's say someone has max'd out solo 401K ($55K) and they have another $45K of extra income, would it be better to invest that extra $45K in a taxable account (like a total stock market index fund) or invest in a rental property.

  • Thoughts on donating blood plasma as an option to increase your income as a military member? In the military you can’t pick up more hours to make more money. Working a second job when active duty requires commander approval and is usually not feasible when 12-hour shifts are in effect. Donating plasma gives you the flexibility to take a week off or two or three when you need and you can be rewarded $200-$300 a month.

    Bonus: Like donating blood, you are helping to better people’s lives because plasma is used to make life saving medicine as blood plasma is often administered to patients with leukemia or burns, and those who have undergone surgery and other injuries.

    Win-Win-Win!

  • i want to enlisted in a couple weeks and im ready to take that stepp into becoming a milioniare im 19 going on 20 i found this video through an ad i really enjy the infromation i watched it twice

  • Thanks for sharing! Very informative and look forward to being in your shoes over the next 10 years.

  • I’m sure it was easy to save up an ass load being an officer, but can you be a millionaire in the future as an enlisted?

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