It’s not just the emotional and logistical parts that affect military families, there’s also the financial implications too. Even with allowances and reimbursements from the military, out-of-pocket expenses can add up quickly from deposits for homes to replacing belongings that got damaged from the move.
Budgeting for unexpected expenses can be tricky, especially when reimbursements from the military are delayed or don’t cover the full cost.
Frequent moves disrupt the jobs of the spouses, however, nowadays remote work is more popular. The loss of a second income can put great strain on the relationship and financial aspect of a family.
The cost of housing and living adjustments can fluctuate based on the economy and country you’re living in, leading to discrepancies in the expected budget.
Here’s what you should do:
- Effective Budgeting: Develop an in-depth budgeting calculator online or using Excel to account for moving expenses, cost of living, and much more. Update this regularly as this is what will keep you organized throughout the move and beyond.
- Maximize Military Benefits: Learn about all the military benefits available to you and make full use of them. Also, take advantage of the financial assistance services offered by the military. These services offer personalized advice on your income and expenses. It’s basically like having an in-house wealth manager.
- Build an Emergency Fund: This is the most important tip for military families because unexpected obstacles can arise at a moment’s notice. Build an emergency fund of up to 6 months' worth of income and set up automatic transfers to a savings account to consistently grow the fund.