Cassie Hatcher, one of the many resources we follow on LinkedIn, posted this interesting budget on the difference in costs between active duty living budgets and the ones retirees will face after leaving the military.

Agree or disagree? $ $ .

On paper, six figures looks like the finish line. For many leaving the military, it feels like the reward after years of service. But once you do the math, that finish line can move further away.

:
• Pay was steady, twice a month
• Tricare = $0 premiums, no deductibles
• Housing allowance or base housing kept costs stable

:
Health insurance feels like a second mortgage
• Rent eats 40% of income
• Daycare equals a college tuition bill
• Health insurance = $12K–$15K/year in Tricare premiums
• No BAH or COLA cushion

() :
• $150K salary
• After taxes (~20% effective, federal + payroll + state): $120K take-home
• Healthcare premiums + deductibles: ~$15K/year
• Rent (family-sized housing): ~$40K/year
• Daycare (1 child): ~$22K/year

That’s $77K gone in fixed costs.

Leaves $43K for savings, car payments, food, transportation, vacations, and “living.” If you were making $100K that would leave $23K for “living”.

For those who’ve already transitioned, how did the math hit you? What costs surprised you the most?