Military Money Matters: 4 Tips for PCS Budgeting


Mil Money Matters

PCS season is upon us, and almost every military family can agree that a Permanent Change of Station (PCS) move is difficult for even the most seasoned service families! One of the biggest concerns during a move is the impact it can have on your budget.

Each time we PCS, it presents us with an opportunity to break out our budgeting tools, crack open our family’s trusty budget spreadsheet, or just bust out the paper and pencil and re-visit that tried and true paycheck planner. Whatever your method of choice, it’s imperative that you prepare for your move in advance by making a travel budget.

Having sufficient funds on hand to make the move is critical to alleviating unnecessary stress. While your branch of service will reimburse you for many travel expenses, crunching the numbers before you back out of the driveway or hit the runway will make your PCS much more enjoyable! Thankfully, there’s a wealth of information out there; here are a few tips to help you navigate the sea of great financial resources:

  1. Start with the basics! Begin gathering information on the cost of living at your new duty station by visiting the Department of Defense BAH Calculator. Simply plug in your service member’s rank, your new duty station’s zip code, and the year, and the calculator will provide you with the BAH rates for your family. Once you have this information, take a look at area housing and compare costs. Remember to consider the cost of utilities, too. Call the local cable company and lookup the average cost of electricity, gas, heat, etc. for homes in the area. Knowing your basic housing costs is an excellent place to start!
  2. Take a look at the distance between where you might like to live and the nearest commissary. Commissaries save military families an average of 30% on their groceries, so most of the time, it’s worth the trip! If you will be quite far from the commissary, locate some information on what basic food items in the area cost so you can estimate your monthly grocery bill. Housing, utilities, food and vehicles make up the bulk of a military family’s monthly expenses, so starting here will give your budget a solid foundation.
  3. Speaking of cars, check your vehicle expenses. When you move, insurance rates can change, along with taxes paid on your vehicle each year. This is especially important for leases. Car insurance will fluctuate, and remember each state has different laws regarding insurance coverage. Take a moment to look up this information and adjust your plan accordingly. Planning for possible insurance cost fluctuations is much cheaper than paying the ticket you’ll receive if you drive without the proper coverage! Also, don’t forget to factor gas prices and commute into your budget.
  4. Get the scoop from your Admin section before you leave your current duty station. Take a moment to visit with your personnel office and learn your entitlements before you go. Many military families don’t ask about Dislocation Allowance (DLA), which they are entitled each time they move. DLA’s purpose is to offset the cost of a military PCS, so that families don’t spend an excessive amount of money out of their own pockets when they move. In addition, make sure you understand what receipts to save and what expenses are covered as part of your move. When travel claims are filed, you want to have the necessary documentation so that any monies you are owed are returned to you as quickly as possible.

In the end, no two military families PCS in the same way, so choose the methods which are best for you. Just be sure that budgeting is a part of your process! Having a financial PCS plan will go a long way toward starting your new tour off on the right foot.

What are your best budgeting tips for a PCS? Leave us a comment and share!

meredithPosted by Meredith Lozar, MHR, AFC, Volunteer & Community Outreach Manager

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