Military financing issues are unique to military families, and very few financial experts possess the know-how needed to manage military financing. However, with the help of a carefully planned budget and spending plan, a military family can gain control over their finances.
The trickiest part of military financing may be devising a budget while your husband is deployed. Unfortunately, many financial institutions fail to understand the difficulties surrounding military financial issues during this transitional period. Not only is your husband stationed in another state or country, but it can also become problematic trying to communicate with your husband about the family’s finances.
To prepare for deployment, you and your husband should develop a “stateside” budget. Make sure to include bills, future expenses, savings, and an emergency fund. Many families also choose to put aside a small amount of money as a deployment fund. This money is meant to cover the issues and needs that arise during deployment.
The time leading up to when a family member deploys can be stressful, especially when it greatly impacts the family’s budget. It is not uncommon for a family to spend thousands of dollars on equipment, clothes, and other necessary items. It usually takes about a month for a family to receive deployment pay, making it necessary for the family to maintain a budget beforehand. For this reason, financial experts recommend saving for deployment a few months ahead of time.
After a military family member deploys, the budget needs of the family will change. Even though a wife will receive money while her husband is away, she may need additional funds to compensate for time lost due to having to take time off of work. This is especially true for women with children.
Also, many military families incur extra expenses during deployment. Stateside spouses may need to hire a lawn service, babysitter, or pay for postage to send packages overseas. Furthermore, it typically seems to be true that emergencies tend to creep up as soon as a family member deploys, forcing the family member that’s left in charge to pay out-of-pocket most of the time. For instance, plumbing problems now require the assistance of a costly handyman.
The best way to handle this is to add these extra expenses into the family budget. In addition to budgeting for extra services, it’s also a good idea to put aside even more money to cover the expenses of the deployed member. Some military finance experts say to put aside at least five percent of income to cover the expenses of the deployed member.
Be sure to include the extra pay from the deployed family member into the budget. You may also want to try to cut expenses. Many spouses find that they save money on utility costs and groceries simply by having fewer people in the house.
Taking care of the family’s expenses can seem like a daunting task, especially when you’re husband is hundreds of miles away. To ensure the welfare of your family, make smart choices when it comes to managing your money.
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