I recently connected with Ryan Luke, a police lieutenant and self-taught personal finance expert with a blog called “Arrest Your Debt and Build Your Future.” Launched about 1.5 years ago, Ryan’s blog targets first responders, guiding them on debt elimination and savings building. Recognizing the absence of financial literacy in most first responder wellness programs, he aims to inspire these professionals to take an active role in securing their financial futures.
Beyond Pension Contributions: Crafting a Savings Strategy
MELISSA: Could you share a bit about your typical day as a police lieutenant?
RYAN: As a lieutenant overseeing the property crimes unit, which includes financial crimes, auto theft, and commercial crimes, my responsibilities have shifted from the frontline action. A “day in the life” involves managing these units and dealing with various cases.
MELISSA: Are you actively planning for retirement, and do you have a specific date in mind?
RYAN: Yes, I’m four years away from becoming eligible for retirement. Public employees in my location become eligible for a pension, and the longer you work past 20 years, the higher your pension. At 20 years, you get half of your highest-paying three years for life, topping out at 80% of your salary after 32 years.
MELISSA: That sounds like a solid retirement plan. Jobs with pensions are becoming rare.
RYAN: Exactly, they are becoming a thing of the past.
MELISSA: Tell me about your blog, Arrest Your Debt.
RYAN: The blog focuses on responsible personal finance, offering insights into debt reduction, budgeting, income enhancement ideas, and tips for frugal family spending.
MELISSA: What inspired you to start the blog?
RYAN: Witnessing fellow first responders spending beyond their means, especially on non-essentials, prompted me to write a book about building wealth on a public servant salary. Later, realizing that millennials prefer podcasts, YouTube, and blogs over books, I transitioned my content into blog posts. The blog, started about five years ago, aims to share financial wisdom gained by my wife and me, encouraging responsible money management.
MELISSA: I heard you also teach. Can you elaborate?
RYAN: I educate police officers and first responders on the importance of saving for retirement, emphasizing the potential vulnerabilities of pensions. I urge them to think beyond pensions and consider alternative retirement savings, sharing personal experiences and lessons.
MELISSA: Given your role as a public servant, have you explored additional investment avenues like IRAs or 401(k)s?
RYAN: First responders have 457b accounts, similar to 401(k)s, with slightly different rules. These accounts offer the option of Roth or traditional contributions. Additionally, my wife and I have invested $35,000 in mutual funds as a six-month emergency fund, alongside a regular emergency fund with our bank.
MELISSA: Have you ever tackled significant debt, and if so, how did you manage it?
RYAN: Yes, we faced substantial debt, including car loans and a foreclosed condo due to an adjustable rate mortgage during the economic downturn. The turning point came when my wife revealed I had spent over $1,000 in a month dining out while at work. This realization prompted a shift toward responsible money management.
MELISSA: Your blog emphasizes the importance of planning. Can you elaborate on that?
RYAN: I’m passionate about helping first responders avoid the “failure to plan” mindset. Despite having precise plans for work operations, many neglect planning their personal finances. We invest so much time and energy at work that we often shy away from making decisions about our lives and retirement when we’re home.
MELISSA: Any favorite piece of content you’ve created?
RYAN: I particularly like the post “Is money affecting your marriage?” It addresses the common trend of couples maintaining separate finances and emphasizes the strength of working together toward financial goals.
MELISSA: What parting message would you like to share with the Think Save Retire audience?
RYAN: Living a fulfilling life is possible on a smaller salary with proper budgeting and prioritizing values. By confronting the truth about your spending habits, you can align your financial decisions with your true priorities and achieve a balanced and enriched life.
