Pre-Deployment PlanningBefore embarking on deployment, it is paramount to fortify your financial position to weather the challenges ahead and maintain stability for you and your family.• Strategic Budgeting: Develop a meticulous deployment-specific budget that takes into account anticipated expenses, such as family support, personal savings goals, and potential unforeseen costs. Consider utilizing budgeting tools and resources provided by military financial assistance programs to streamline this process.• Legal Preparations: Establish power of attorney to designate a trusted individual to manage financial affairs on your behalf while you are deployed. This ensures continuity in bill payments, financial decision-making, and access to funds, alleviating stress and providing peace of mind for both you and your loved ones. Managing Finances During DeploymentDespite the physical distance and demands of deployment, it is essential to maintain vigilant oversight of your finances to uphold financial stability and security.• Remote Banking Tools: Leverage the convenience and accessibility of online banking platforms to monitor account activity, track expenses, and conduct financial transactions securely from anywhere in the world. Familiarize yourself with the features and functionalities of mobile banking apps offered by your financial institution to stay connected and in control of your finances while deployed.• Direct Deposit Arrangements: Opt for direct deposit of your military pay to ensure seamless and timely access to funds, eliminating the need for paper checks and minimizing the risk of financial disruptions. Coordinate with your financial institution to set up direct deposit arrangements well before deployment to avoid delays or complications.• Special Deployment Benefits: Capitalizing on Financial OpportunitiesDeployments come with unique financial benefits and opportunities that service members can leverage to optimize their financial well-being and maximize savings potential.• Tax Exclusions: Take advantage of combat zone tax exclusions provided by the Internal Revenue Service (IRS), which allow service members deployed to designated combat zones to exclude certain types of income from federal taxation. Familiarize yourself with the eligibility criteria and guidelines outlined by the IRS to ensure compliance and maximize tax savings during deployment.• Savings Programs: Explore savings programs tailored for deployed service members, such as the Savings Deposit Program (SDP), which offers an opportunity to earn competitive interest rates on deployed funds. Consider allocating a portion of your deployment pay to the SDP to capitalize on the benefits of this specialized savings program and bolster your financial reserves for the future. Post-Deployment Financial ManagementUpon returning from deployment, service members must adapt their financial strategies and priorities to the post-deployment phase to ensure a smooth transition and continued financial stability.• Budget Adjustment: Review and adjust your budget to reflect any changes in financial circumstances, priorities, or goals following deployment. Consider any additional expenses or financial commitments that may have arisen during your absence and make necessary adjustments to your budgeting allocations accordingly.• Investment Evaluation: Assess the performance and alignment of your investment portfolio with your post-deployment financial goals and risk tolerance. Consider consulting with a financial advisor or utilizing investment management tools to evaluate investment options, rebalance your portfolio, and make informed decisions to optimize returns and mitigate risks. ConclusionEffective financial planning and management during deployment are critical components of ensuring long-term economic stability, security, and readiness for service members and their families.By proactively addressing financial matters before, during, and after deployment and leveraging available resources and benefits, service members can mitigate financial stress, build resilience, and set themselves up to achieve their financial goals and aspirations. Resources• Military OneSource: Offers free financial counseling for service members, including those facing deployment.• Defense Finance and Accounting Service (DFAS): Information on special deployment benefits like the Savings Deposit Program.• Internal Revenue Service (IRS): Resources on tax benefits for deployed service members. This content is provided for information or educational purposes only and is not intended to serve as financial or legal advice.
