Episode•November 7, 2019•19 min

Money in the Military with Janeil Pierre | Ep. 17

The military offers a lot of perks, but sometimes those perks can lead to irresponsibility when it comes to money. Join Tiffany as she speaks with former soldier Janeil Pierre as they unpack what it is like, financially, to be in the military and making smart decisions while enrolled. Also, they discuss buying cars and their budget killers aka vices. About our Guest Janeil Pierre is a financial success coach and owner of The Wealth Factor, a blog dedicated to financial independence. Like her on Facebook: https://www.facebook.com/thewealthfactor1/ Follow her on Twitter: https://twitter.com/TheWealthFactor Follow her on Instagram: https://www.instagram.com/thewealthfactor1/ Links Visit my site: https://www.moneytalkwitht.com Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff Channel Pinterest: Money Talk With Tiff This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Military perks can foster financial irresponsibility when basic needs are covered
Service members receive reliable pay on the 1st and 15th with medical, dental, and housing covered
This safety net can lead to frivolous spending since there's less urgency to save
Many enlist right out of high school without prior money management experience
2
Frequent car purchases with negative equity create a costly debt cycle
Janeil bought four cars in 4-5 years, spending roughly $80,000 total
Each trade-in rolled over negative equity ($4,000 then $6,400), inflating loan amounts
Interest rates stayed low (0-2.5%) due to good credit, masking the true cost
3
Monthly payment focus hides the full cost of car ownership
Janeil later calculated she was spending over $800/month including gas and insurance
Depreciation hits hardest in the first three years on new vehicles
Used cars were avoided due to lack of mechanical knowledge and fear of repairs
4
Late entry into the military brought prior financial struggles that shaped better discipline
Janeil joined at 27 after living paycheck-to-paycheck in New York, sometimes skipping meals
She avoided debt and credit cards, choosing to live strictly on cash before enlisting
Motivation came from wanting job security and the ability to afford college

Intro

Tiffany explores how military perks affect spending habits with former Army soldier and financial coach Janeil Pierre, focusing on car-buying mistakes and budget pitfalls.
Janeil Pierre is a financial success coach and owner of The Wealth Factor blog. She served nearly eight years in the Army before transitioning to financial education.

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– Military Pay Structure and Spending Culture

Janeil describes seeing a wide range of financial behaviors in the military—from living paycheck to paycheck to buying $1,000 sneakers and cars at 24-25% interest.

We can be a little bit frivolous with money... because we know that regardless to what, everything is covered.
– Janeil Pierre

– Janeil's Path to Enlisting at 27

Unlike many who join right after high school, Janeil enlisted at 27 after struggling financially in New York—walking to work to save $103/month on a MetroCard and sometimes going to sleep hungry after paying rent.

There has to be more out of life. I'm almost 30 and I'm living like a high school [student].
– Janeil Pierre

– The Car-Buying Vice: Four Vehicles in Five Years

Janeil's main spending weakness was cars. She bought a new 2011 Toyota Corolla, then traded up three more times, often for emotional reasons like wanting an SUV or needing a change while stationed in Hawaii.

I probably spent about $80,000 doing that. Yeah, I'm kicking myself.
– Janeil Pierre

– Understanding Negative Equity Rollovers

Each trade-in added negative equity to the next loan. Her first car bought for $19k was worth $11k after seven months, rolling $4k into the next vehicle. By the final car, she carried over $6,400 in negative equity before making the first payment.

Before I even start paying for that new car, I had $4,000 left over from the old car.
– Janeil Pierre

– The True Monthly Cost of Car Ownership

Low interest rates (0-2.5%) made the payments seem manageable until Janeil built a full budget in Virginia and realized she was spending nearly $800–$1,000/month on her car including gas and insurance.

That made me feel sick... spending almost $1,000 on a car that depreciates.
– Janeil Pierre

Resources

The Wealth Factorarticle

Topics

military financecar loansnegative equitybudgetingpersonal finance mistakesfinancial disciplinevices and spending habitsArmy lifedebt cyclenew car depreciation