After months of planning and hard work, you’ve landed safely at your next duty station. Congratulations!

As you kick off this next chapter in your MilLife, it’s a good time to check in on your finances. Let’s look at two key items that are likely to change after a PCS: your budget and your insurance.

Budget Reset

A PCS is the perfect time to reset your budget as a lot of changes have likely occurred. Taking a fresh look at your budget helps you:

• Prioritize how money is spent
• Discover areas of waste
• Save for your family’s future
• Prepare for unexpected expenses
• Reduce money-related stress

Begin your budget reset by completing this online worksheet to track your monthly income and expenses. Some tips:

• Be as accurate as possible. Track everything coming in and going out so you have a solid grip on what needs adjusting.
• For income, review changes to your housing allowance and other military allowances. Be sure to apply for any refunds you’re due from your PCS, such as the Dislocation Allowance and the Temporary Lodging Allowance.
• The same thinking applies for expenses. Include changes in your costs for housing, child care, commuting, insurance, etc. Out-of-the-ordinary expenses like new household items should be accounted for too. And be sure to budget for building or rebuilding your emergency fund to prepare for unexpected expenses.
• Knowing where your money should go for key categories is a key element in reviewing your budget. Here are some guidelines:
  • Saving and investing should be 10-15% of your pre-tax pay.
  • Housing expenses should generally be limited to what you receive in BAH or 25% of your pre-tax pay. This can be challenging in some locations, but the closer you can stick to this guideline, the better off your budget will be.
  • Transportation expenses, including a car payment along with fuel and maintenance, should be less than 15-20% of your pre-tax income.

Once you know what your situation looks like and the budget you’re now working with, it’s important to review it regularly. It may be more frequent in the beginning at a new place as it does take some time to fully account for all the changes.

Insurance Review

As part of updating your budget and identifying changes, you will need to update your housing and car insurance after your PCS. Some things to keep in mind:

• Before updating insurance, carefully assess what you need to protect.
• Determine the level of coverage you need. Compare insurance companies and their policies.
• Ask about discounts and savings but pay attention to overall price. A company that offers few discounts may still have lower premiums.
• Ask if an insurer reduces premiums for service members or if you buy more than one type of insurance from them.
• Although important, the cost of insurance should not be the only factor. You should also check an insurance company’s reputation by consulting A.M. Best Company reports (available in most libraries) and your state’s department of insurance website to find out whether complaints have been filed against a company.

Learn more about homeowners insurance, renters insurance and car insurance.

Once you get your budget and insurance in line, you’ll be in a better position to take advantage of the opportunities offered by your new duty station. Here’s wishing you an enjoyable and financially secure time in your new home!

To find more resources and information for before, during, and after your move, check out the Permanent Change of Station page.

And if you want help getting started, find a free Personal Financial Counselors on your installation.

MilSpouse Money Mission® is a Department of Defense resource that offers FREE personal financial education specifically geared toward military spouses. There is a Money Ready guide for various stages of financial life, a MilLife Milestones section to help you through the big moments in your military journey, a blog, spouse videos, quizzes, calculators and more!