What to do with a Military Discount

A few weeks back, I posted an article for my brothers and sisters in the armed forces to encourage them to use their military discounts.  Here is a question, what do you do with the money that you save?  Here is one suggestion that I am doing….bank it.
For my personal retirement, I have a minimum contribution of $50. I take a look at each receipt that I have and keep a running total of my military discounts.  It may be $.50 here, a $1.25 there.  In the end, it will add up.  What you do with this discount is very important.  Let’s say my discount adds up to $50, three times a year.  Let’s also say that I put that in a mutual fund with a small, 5% annual growth rate.  Take a look at what you will get:

Starting Age	Years until you can collect a military retirement	Total
18	42	$28691
20	40	$23791
25	35	$15369
30	30	$11065
35	25	$7961
40	20	$5542
45	15	$3657
50	10	$2189

How much did this cost each member?

Starting Age	Cost	Gain	Growth
18	$6300	$22391	78%
20	$6000	$17791	74%
25	$5250	$10119	65%
30	$4500	$6565	59%
35	$3750	$4211	54%
40	$3000	$2542	45%
45	$2250	$1407	38%
50	$1500	$689	31%

It clearly shows that the earlier you smartly invest your military discounts, the more money you will have at retirement.  Do not rely completely on this method.  Remember to contribute to your Thrift Savings Plan as much as you can.  The more you put in early in your career, the more you will be able to enjoy your military retirement benefits….like world travel.