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Budgeting During Deployment
If you’re getting ready for deployment or are currently deployed, having a budget is vital to your financial health. Read on to learn more about budgeting during employment for service members.
Maintaining Clear Channels of Communication
When you’re deployed, you need to know that your expenses are being taken care of back home. This could mean that you have an appointed family member who makes payments on your behalf. You could also set up autopay for all of your bills. One critical issue is that you ensure your wishes will be met in the event of your injury or death in the line of duty. Secure powers of attorney and an estate plan before deployment so that you’ll have peace of mind about your affairs and that your loved ones will be taken care of to the best of your ability.
The best budget to work from is your pre-deployment budget. Don’t spend more than you did before being deployed.
Ways to Save
Whether you’re deployed or stationed at home, shopping at your local exchange and commissary can save you money on essentials.
Benefits of the SCRA Servicemembers Relief Act
One of the helpful considerations given to service members comes in the SCRA. One of its chief benefits is that even for financial obligations incurred prior to military service, service members will only have to pay a maximum of 6% interest. This includes credit debt as well as mortgages.
The SCRA also allows service members to break leases if a member receives a change of station or deployment orders of 90 or more days during said lease.
Review the provisions of the SCRA to learn more about what benefits you’re entitled to and for information on how it affects dependents of active duty service members.
Other Military Entitlements
As an active duty service member, you may be entitled to provisions including Family Separation, Imminent Danger, or Hardship pay. You may also be eligible for special rates on mortgages or credit accounts or may qualify for grants with certain credit unions or banks.
Department of Defense Savings Plans
The SDP or DOD Savings Deposit Program allows that amounts up to $10,000 may be deposited and earn an annual return of 10% interest. To qualify, you must be receiving Hostile Fire Pay as well as be deployed for a minimum of 30 consecutive days or 1 day in each of 3 consecutive months.
Building an emergency fund for yourself and your family is an ideal goal. Any income you get above and beyond your pre-deployment income should be put into savings. This way, you’ll have some money saved when your deployment is over. Having this money set aside will also create peace of mind for you and your dependents.
If you’re currently living with debt problems and you’re concerned about your financial situation, CreditGUARD can help. Call CreditGUARD Today at 1-800-500-6489 to learn about our programs especially geared toward military service members.