Former Air Force C-17 pilot Spencer Reese has a misconception he’d like to clear up for his military brethren: that the military is not a path to wealth.
“That’s just not true,” said Reese, a registered financial advisor in New Zealand, where he moved after he left the military in 2022. “There are plenty of opportunities to build wealth in the military. You don’t have to fit the stereotype of the young officer who goes out and buys the Dodge Camaro at 28% interest.”
Long interested in numbers and finance, Reese noticed early in his 12-year career as an airman that there was a dearth of military-related money advice, especially for the reserve component. In order to fill that gap, he founded Military Money Manual in 2010, a website focused on the nuances of military life and all things finance. Its creation was meant to help others, but also allow him to puzzle out different ideas from fellow service members.
“I was hearing things like people keeping debt around to build their credit score while still paying interest on that debt,” Reese said. “They didn’t have enough information to make a good decision.”
Some reports suggest that nearly half of currently-serving military families report low or very low financial security. Reese’s goal? To increase those families’ financial security. Alongside “The Military Money Manual: A Practical Guide to Financial Freedom” that he published in 2023, Reese has curated a wealth (pun intended) of financial information for military families, including reservists. Read on for his top reserve-related money tips:
- Timing is everything: if you’re about to get activated, wait to apply for new credit cards. Why? Because once your activation orders kick off, you and your spouse fall under the Military Lending Act, meaning that annual fees on premium hotel and travel cards go bye-bye. But if you apply too early, you’ll be on the hook for yearly fees.
- Make your Blended Retirement System (BRS) work for you: The BRS combines a reduced pension with the government-matched Thrift Savings Plan (TSP) contributions. As a reservist, you can contribute at least 5% of your base pay to secure the full 5% government match.
- Utilize TRICARE insurance meant for reservists: Reese calls the TRICARE Reserve Select plan one of the best money hacks — because for less than $60 for the member or $300 for a family, you can receive comprehensive health insurance, potentially saving thousands.
- Save when you can: “Reservist income is lumpy,” Reese said, “so if your mobilized pay exceeds your civilian pay, you’ll want to save the difference to use for things like an emergency fund, debt repayment or a savings goal like a vacation or new car.” Alternately, you can place the excess temporary income in your Roth IRA account, setting yourself up for another wealth-growing investment.
- Don’t let your benefits expire unused: perks like the GI Bill, VA home loans and Servicemembers’ Group Life Insurance (SGLI) aren’t just for active-duty troops! Reservists are eligible, too, so take full advantage.
Reese is also a fan of creating automated money systems like automatic monthly contributions to retirement accounts, which remove any possibility of human error. Small habits truly add up.
“I think so much of the confusion around personal finance is because people haven’t created the environment in which they can thrive,” he said.
He’s helped thousands of military families do exactly that, and the proof is in a computer file labeled “Nice Emails” from readers and listeners of his Military Money Manual podcast.
“Reservists can use their time in as an opportunity to squander their pay and benefits—or as an opportunity to grow their wealth,” he said. “You can take a different path while you serve than everyone else, and you can do it without sacrificing too much.”
