As a financial advisor and former military member, I am always looking for ways to help my fellow service members achieve their financial goals and build solid financial plans for their future. That’s why I was excited to hear about the military pay raise for 2023, which is set to be the largest in 20 years, and the increase in TSP contributions!
Military Pay Raises
The pay raise includes a 4.6% increase in base pay and an impressive 11% hike in Basic Allowance for Subsistence. These adjustments will benefit approximately 1.4 million active-duty service members along with their Reserve and National Guard counterparts. As for living arrangements, Basic Allowance for Housing rates increased by 12.1%.
These increases are a welcome recognition of the sacrifices that military members make daily. They are designed to help them keep up with the cost of living and ensure that their pay remains competitive with the civilian sector. By the time you’re reading this, you should have already noticed a healthier paycheck if you are currently serving.
Increased TSP Contributions
As for the TSP, contribution limits go up to $22,500, up from 2022’s $20,500. For those who are over 50, you can utilize a ‘catch-up contribution.’ In 2022, the catch-up contribution stood at $6,500, while 2023’s catch-up contribution goes up to $7,500.
So, what to do with this extra cash? I recommend maintaining your current lifestyle and putting more into the TSP or investing in alternatives. You can open an IRA or Roth IRA, invest in real estate, or develop a side hustle.
You can read about inflation-fighting, wealth-building investment ideas here —> Protect Your Savings from Inflation in 2023!
A Financial Advisor and a Former Service Member
As a former military member myself, I have firsthand experience with the financial demands of military life. I know what it’s like to live on a military salary, and I understand the importance of making every dollar count. As a financial advisor, I also appreciate the value of having a firm financial foundation and a solid plan for the future. Whether you are deployed overseas, moving frequently, or dealing with the stresses of military life, it can be challenging to manage your finances and plan for the future. That’s where I can help.
Whether you are saving for retirement, paying off debt, or planning for your post-military career, I can provide personalized financial advice and support. I have a deep understanding of the military pay system and the financial benefits available to military members, and I can help you make the most of your hard-earned pay increase.
Plan Your Financial Future
As a financial advisor, I want to help you make the most of your pay increase and housing allowance increase. I can offer guidance on budgeting, saving, and investing and help you develop a plan to achieve your financial goals. I am here to provide support and encouragement every step of the way.
If you are a military member looking for financial advice and support, don’t hesitate to contact me. Together, we can make the most of your hard-earned pay increase and ensure you have the financial stability and security you deserve.
