How to Control Your Budget When Your Spouse Is Deployed

A deployment doesn’t need to throw your finances off track. Together, you can establish a budget and take advantage of various entitlements to stay on track.

Deployment-related entitlements

Your service member may be entitled to certain allowances, depending on the circumstances of their deployment. Learn whether your service member is eligible for any of the following:

• Family Separation Allowance. This additional pay compensates service members for added expenses when family members can’t live with or near them at their permanent duty station.
• Combat Zone Tax Exclusion. Pay while serving in a combat zone is exempt from income taxes.
• Hostile Fire/Imminent Danger Pay. Service members are entitled to special pay when assigned to a designated imminent danger pay area or if their commander determines they are eligible for hostile fire pay.
• Hardship Duty Pay. This is additional compensation paid to service members assigned to locations where living conditions are substantially below those in the continental U.S.

Building savings during deployment

Extra deployment pay is a great way to build your savings or invest in your future. Talk with your service member about taking advantage of the following opportunities to grow your savings during deployment.

• Thrift Savings Plan. If you have extra income, consider increasing your deposits in the Thrift Savings Plan. You’re not likely to miss the money coming out every month, and you’ll enjoy the benefits in the future. Another option is to open a Roth TSP. Unlike a traditional TSP, where you don’t pay taxes on your contributions until you withdraw them, Roth contributions are made after taxes. The payoff is that your withdrawals will be tax-free, along with any earnings it has accrued.
• Savings Deposit Program. At the very high rate of 10% interest up to $10,000, the Savings Deposit Program is an excellent way to grow your savings. The program is available only during deployment to a combat zone or receiving Hostile Fire/Imminent Danger Pay. Also, be aware that interest will not accrue after the $10,000 cap is reached.
• MILITARY STAR card. Your MILITARY STAR card offers special lower interest rates during deployment. If you have other credit cards with a very high interest rate, look at the Servicemembers Civil Relief Act to get them reduced. Contact the legal assistance office on your installation for more information.

How to stay in control of your finances during deployment

Here are some ways to keep your bills in check:

• Discuss bills before your spouse leaves. Make a list of all your combined bills and when they’re due.
• Don’t overspend before the deployment. Make a budget for deployment spending. Don’t go overboard with electronics and equipment that you don’t need.
• Always keep some extra money in savings. Make sure you keep some extra savings for emergencies, even if it’s just a few dollars from each paycheck.
• Live off your predeployment income. Sometimes, extra pay can tempt you to spend more. Instead, try to live off your predeployment income and use any extra income to pay down debt or invest for retirement.
• Set aside money for a special occasion. Even $50 a month will add up and will come in handy when it’s time to celebrate your service member’s return.

Homecoming and overspending

It’s the moment you’ve been waiting for, so it can be tempting to overspend when you celebrate. Here are some ways to keep your homecoming debt-free:

• Visit your installation travel office for special postdeployment deals. If you’re going to a family resort, be sure to ask whether special rates are available for service members returning from deployment and their families.
• Check out the Travel Planning MilLife Guide for money-saving tips and links to discounted travel and events.
• Shop at your installation exchange and commissary for postdeployment celebrations. The tax break and special sales can save you a bundle.
• Look for free and low-cost activities to do together.
  • Take advantage of free events, like outdoor concerts or free admission days at area museums. (More than 2,000 museums offer free admission to service members and their families through the Blue Stars Museum program each summer.)
  • Visit National Parks for free with an America the Beautiful Pass.
  • Go on a hike. Pick a trail that’s suitable for both your fitness levels.
  • Plan a picnic in a local park. Pack your favorite foods and don’t forget the blanket.

Check out MilSpouse Money Mission for more information about smart money management. For personalized support, take advantage of free financial counseling.

Find more tools and tips to keep you and your family strong during every phase of deployment from Military OneSource and your Military and Family Support Center. Military OneSource is ready 24/7 to help you and your family thrive. Living overseas? View calling options.