How?
My bills are < even one of my paychecks and that’s with 15% going into TSP. To those that max it, do you have a second income? I’m the only source of income in my household. Or is it that those who max it out live with just with their paycheck completely spent on bills and TSP with an emergency savings for anything else?
Maxing TSP contributions
byu/Background-Scene-359 inMilitaryFinance
Posted by Background-Scene-359
12 Comments
Depends on rank, TIS, and dependents. There’s a difference of a single O-2 and an E-2 with 3 kids.
You said your bills are less than a paycheck, unless you wrote the wrong symbol. I have no idea what you are trying to say in your last sentence. People use a budget, which includes TSP contributions, yes.
Slow and steady wins the race. It took years before I was able to max my TSP contributions but once I did, I kept it up for the rest of my career. 15% is great… just bump it up a little more with each longevity raise and promotion. You’ll get there. In fact, you’ll likely get to the point where you’re maxing TSP, a Roth IRA, and a spousal Roth IRA. It won’t happen overnight, but you’ll get there. Just avoid lifestyle inflation, drive solid used cars, eat mostly at home, etc. Good luck – you’re doing great.
Single E7, first year I’ll be maxing
You wrote your bills are less than. If you mean greater than, then you need to reevaluate your bills.
It’s hard to give you a straight answer because there are endless possibilities of how people budget and manage their household. I’m more than halfway to retirement so I’ve been in awhile. Between bonuses and stuff my emergency fund is good to go. So that’s less money I have to put in savings and more I can invest.
If you’re dual income that also makes it easier. Not having car payments etc. But I’ll agree when you’re just new to the military, recently married E-5 with a kid on the way you’re probably not going to max out your TSP. But with every promotion if you just continue to put a little more and don’t fall victim to lifestyle inflation you’ll get there.
Being dual income (mil to mil in my case) helps a lot. Also, I’m very much in the minority here, but especially while Single, maxing a Traditional TSP is much easier. I also think it lines up with life stages much better than trying to max a Roth.
I’ll be maxing a Roth IRA for my first time next year (front load $6k on 1 Jan 2026 and DCA the rest throughout the year). I plan to keep maxing that with my/Spouses income even after I retire from the military 6-8 years from now. I don’t know where you are now but all of this got significantly easier once I:
1. paid off student loans
2. eliminated all debt
3. learned to cook relatively cheap delicious food
4. had a newer paid off car (low maintenance)
5. sold my first house
6. built up funds in a HYSA/Brokerage Account
In short, the answer is Time.
Best thing you can do is revisit your savings/expenses anytime you get a pay bump. Forget your passwords afterwards and try to live your life from there. If you’re disciplined, learn a little about churning credit cards to simultaneously get your Credit Score up and accumulate points using the big purchases you were going to make anyway. The vast majority of my vacation flights were paid for with Chase Ultimate Rewards points or something similar.
Good luck
I live in the barracks. My only bills are car insurance, mobile data, and Wi-Fi.
Make more or spend less. Or both
My wife and I are dual mil (Enlisted) and while we could max it we don’t.
We were doing 25-30% for a while, but recently lowered to 5% each for match, max Roth IRAs and are focusing heavy on a brokerage since the plan is to be fully retired at 40 and have a brokerage to bridge fun money on top of Pensions and VA between 40-60 for travel/fun stuff.
Goal is to get to 1.5-2.5 million by 39.
Currently NW is $125k all invested, we only rent as of now and may buy down the road if we get somewhere there’s a chance we’re coming back to.
O-2, married no kids, spouse has a job that makes almost the same as me, and we both have side gigs. Helps to max TSP, no rocket science just whatever you can especially if you get the match.
Remember, comparison is the thief of joy.
Single O-2, about to make O-3, this was the first year I maxed it, I rent out a spare room for about 50% BAH, that goes a long way.
I max it because I have low overhead, paid off car, no one relies on me financially. I do 35% right now. It’s not for everyone…on the flip side, I could die early and never spend a buck of it, also I don’t have matching (I’m in High 3 retirement for military) so that can be a lil painful to see how fast other people’s TSPs grow compared to mine. Keep doing you.