Budgeting While Your Spouse is Deployed

Deployments bring significant changes to military families, and managing finances during this time can be challenging. However, with careful planning and smart budgeting, you can maintain financial stability and even grow your savings while your spouse is away.

Understanding Deployment Entitlements

First, familiarize yourself with various entitlements available during deployment, such as:

• Family Separation Allowance,
• Combat Zone Tax Exclusion,
• Hostile Fire/Imminent Danger Pays,
• Hardship Duty Pay.

These entitlements can provide additional financial support. Consider saving these funds instead of spending them. Programs like the Savings Deposit Program, which offers high-interest savings during combat deployments, can be particularly beneficial.

Staying in Control of Finances

Here are some effective ways to manage your finances during this period:

1. Discuss Bills Before Deployment: Create a comprehensive list of all bills and due dates. Ensure you know how to manage them in your spouse’s absence.
2. Avoid Pre-Deployment Overspending: Make a deployment budget and stick to it. Avoid unnecessary purchases, especially expensive electronics or gear.
3. Maintain an Emergency Savings Fund: Even small contributions to a savings account can add up. This fund will be crucial for unexpected expenses.
4. Live on Predeployment Income: Resist the temptation to increase spending with extra deployment pay. Instead, use any additional funds to reduce debts or save for the future.
5. Maximize Savings During Deployment:
   • Increase contributions to the Thrift Savings Plan (TSP). Consider both traditional and Roth TSP options for future financial flexibility.
   • Utilize the Savings Deposit Program to earn high-interest rates on your savings.
   • Use the Military Star card for lower interest rates and look into the Servicemembers Civil Relief Act for other credit card interest reductions.

Planning for Homecoming Without Overspending

Homecomings are joyous occasions, but they can also lead to financial stress if not planned for carefully.

1. Set Aside Savings for Celebrations: Dedicate a portion of your savings for post-deployment celebrations. Even saving a small amount each month can accumulate over time.
2. Look for Special Deals: Visit your installation’s travel office for post-deployment vacation deals and ask about service member rates at family resorts.
3. Shop Smart for Celebrations: Use your installation exchange and commissary to save on post-deployment party expenses. The tax break and special sales can significantly reduce costs.

Deployments can be a time to strengthen your financial position. With the right planning and budgeting strategies, you can maintain financial stability and even build your savings. For additional guidance and support, consider reaching out to free financial counseling services available through Military OneSource. Remember, effective budgeting and smart financial decisions during deployment can lead to long-term benefits for you and your family.

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