Podcast: The Military Guide to Financial Independence

Orion’s “From the Battlefield to the Boardroom” podcast provides resources to not only help navigate your job search, but to assist in all areas of your military to civilian transition. We recently interviewed Doug Nordman, author of The Military Guide to Financial Independence and Retirement, and founder of The Military Guide website; and Brian Henry, Senior Vice President of Recruiting at Orion, about achieving financial independence after the military. In this two-part podcast, Doug and Brian provide insight on the new military pension system, financial myths of retirement, financially preparing to leave the military, resources for financial education and more.

The Decision to Leave Active Duty

Only 1 out of 6 people who join the military will serve 20 years. Some may know from the beginning that their days are numbered but for others it isn’t so clear cut. “Take it one obligation at a time. You joined the military to do something that challenges you and is fulfilling. Learn your job, get a few promotions and serve your obligation. At the end of your service obligation, start thinking about what the next step is going to be,” says Nordman. “If you’re still feeling challenged and fulfilled, stay on Active Duty. When the fun stops, you’ll know, and that’s when you need to consider leaving,” he continues. Nordman recommends developing a plan to have 6-12 months of expenses covered so you won’t be rushed into a career decision based on salary alone.

Know Where Your Money is Going

Nordman recommends tracking your expenses for a period of time to see where your money is going. After a couple of months, sit down and figure out if the money you are spending has added value to your life. If you enjoyed it and found it was worth the expense, find a way to keep doing it. The key is to find the balance of what you enjoy and are willing to spend money on, and knowing the difference between frugality and deprivation. “Most people will find that over a couple of months they’ve wasted money on and things that can be turned into savings and investments. If you had debt when you started tracking your expenses, you’ll be able to pay off the debt and use those skills to keep you on the path to financial independence,” explains Nordman.

Increase Your Income with a Side Hustle

Once you’ve began tracking and cutting expenses, the next step is figuring out how to increase your income. “If you’re still in the military, the easiest way to increase your income is to get promoted, but that’s easier said than done,” says Nordman. Instead, he recommends a “side hustle” - something you enjoy doing that people will also pay you to do. A side hustle is something anyone can do, even if you’re still on Active Duty. “It might be as simple as getting a degree and begin working on something outside of your Active Duty hours to make a little bit of money,” he explains.

If achieving financial freedom is a dream of yours, make sure you listen to “The Military Guide: Financial Independence, Part 1” and “The Military Guide: Financial Independence, Part 2.”

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