No Bonus, No Problem

I have never received a formal “bonus” of any kind. I have watched soldiers and airmen piece together the first decade of their careers, one year at a time, with the hope of scoring $3,000-$5,000 bonuses for a three-to-five-year commitment. I have watched some physicians and intensive care nurses earn upwards of $150,000 in bonus cash for their three-year commitment. Theoretically, all of this cash is a good thing, albeit taxed at a premium. I have watched and listened to some military members give off a bitter and resentful vibe when they hear of others getting these bonuses, as if they were personally wronged. Although I haven’t been the recipient of cash in hand, I have always felt that I have been the reaper of some of the most priceless “bonuses.”

One of the biggest selling points that the military touts is its education benefits. I couldn’t agree more, but you need to know how to maximize the opportunity. Unlike a bonus where someone explicitly outlines the amount and the contract with you, with education, you have to do some pro-active research. When I joined the military, I had to learn how much the Montgomery GI Bill covered and when I could use it. When I learned about ROTC scholarships, it wasn’t obvious what was included until I asked around. When I started my master’s coursework, I inadvertently found out that I had also qualified for the Post 9/11 GI Bill. 

I’ve done the math. Inclusive of my “free” classes when I was enlisted, bachelor’s coursework as an out of state school student, three years’ worth of tax-free stipends, money for books and supplies, cash in hand that paid for room and board (and then later my apartment), and then a fully funded master’s degree….I’d say I won in the education bonus. All in, my education (inclusive of tuition, fees, room and board) equates to about $203,000 (2025 dollars). So, what military programs paid for what? Let’s break it down:

$7,000= 28 credits completed at a community college: Tuition Assistance 

$120,000 = 3 years as an out of state student, tuition and fees: ROTC scholarship  

$51,000 = 3 years room & board: Montgomery GI Bill and ROTC monthly stipend 

$25,000 = master’s degree: Post 9/11 GI Bill 

—------------------

$203,000

Bonus to the non-bonus:

I was able to transfer my unused Post 9/11 GI Bill to my kids which equates to about $67,000, plus BAH at the E-5 with dependents level (actual benefit is location dependent).

Not too shabby.

Next “bonus,” and what seems like an easily overlooked benefit for young and healthy military members who don’t have any dependents, is healthcare insurance coverage. Have you ventured to look at how much money is spent for medical insurance in premiums, alone?  It’s about $2,000 per month for a family. That doesn’t count deductibles, co-pays, and medication out-of-pocket costs. It can really add up. The cost to have a baby (pre- and post-partum) can run an uninsured person with a bill of about $20,000. And even with insurance, a civilian can easily expect to pay about $3,000 in total costs on top of monthly premiums. The peace of mind of not having to worry about the cost of healthcare is a bonus in my book. 

The last unofficial “bonus” that I have been recipient of is fully paid household moves. It may seem obvious that a company as large as the military should pack up your household and move your stuff to a location you may or may not have signed up for. The PCS entitlement is not something military people should expect in the civilian world and should not shrug off as nothing. It can easily cost over $10,000 per move, depending on a variety of variables (i.e. distance between locations, size of house you’re having packed up, do you have a baby grand piano, etc.). However, the bonus of having the military pay for one’s move doesn’t actually lie in the dollar amount. The real bonus is the opportunity to live in a place you would never otherwise go. 

When I found out that I would be moving to Georgia after commissioning from college in Massachusetts, I had no idea what to expect. Although I had traveled to Texas and lived in the mid-Atlantic, I had no innate desire or had the opportunity to be in the South. All I had to base my possible experience on was the weather channel and movies - it was too hot to handle, and things happened at a slower pace, respectively. This was not my experience. I enjoyed the weather almost every day. I remember pushing my baby around in a stroller in the middle of December while wearing shorts and I recall thinking, “Well, this is enjoyable.” The people were equally as amazing. Rich in history, the South also boasted resiliency, culture, some really great food and natural beauty. I was completely enchanted when I visited Wormsloe Historic Site in Savannah. Just amazing. Go look it up.

Under normal circumstances and based on my childhood, I really shouldn’t have been debt free from school loans, allowed to have free healthcare, and exposed to a world so far from where I grew up. The economics of my younger self do not suggest those opportunities would be something I would get to have. But they did. 

People with few financial resources often find themselves stuck in a perpetual rut of staying in place because moving to a new location is not feasible. Either they need the social and emotional support of those in their hometown or the financial stability of the hourly-paid job nearby. I should have been working all throughout college to pay for books and gas. I should have been applying for Pell grants during every FAFSA season. I should have done what other people did. But I didn’t. 

I’m happy when other military members get the opportunity for a conventional monetary bonus. I really am. I just hope they don’t forget to enjoy and capitalize on the other benefits, entitlements, and opportunities that make the military worth the sacrifice, challenge, and stress that do occur at times. And I really hope they don’t leave it in the TSP G Fund, but that’s another blog.