How to Prepare Financially for Military Deployment (2025)

Whether one is a deployed service member or a family member at home, deployment has a profound impact on how individuals manage their finances daily. This includes everything from pay and expenses to taxes and insurance, as well as those annoying little emergencies.

You can prevent needless anxiety, uncertainty, and late payments by making a financial needs plan in advance. This is comparable to preparing an economic mission. You may focus on your work and simplify your home life by taking rapid action.

Step 1 – Assess Your Current Financial Situation

Add up any monthly income, monthly expenses, monthly debts, and monthly savings. Consider including unusual costs, so your friends have a comprehensive picture of your budget.

Please leave a contact number and any necessary login information and passwords for the person who will manage your family’s finances. Create a plan to store this information in a secure online or offline location.

Step 2 – Create a Deployment Budget

After that, consider all related potential expenses associated with the deployment as you adjust your family budget.

Some aspects of workers’ compensation, such as battle or hazard pay and tax exemptions, may change while on deployment. Affect what you want to do with your “extra” funds:

Put away funds for unexpected expenses
Pay down higher-interest loans
Paying subscriptions in advance or invoices that are due

You and your partner can prevent disagreements and bad choices later on by agreeing in advance on how deployment funding will be allocated.

Step 3 – Set Up Automatic Payments and Banking Access

Examples of monthly expenses that can benefit from automatic payment plans include utility bills, rent, insurance, and mortgage payments. Verify that the due dates are accurate and that there are sufficient funds in the account to cover autopay deductions.

Create a joint account to pay for household expenses, or grant your spouse or a close relative limited access to your online accounts. When you establish a durable power of attorney, someone else will make sure your benefits, banking, and other essential documents get handled.

As families shouldn’t rely on high-interest loans, planning for short-term emergencies with a viable and low-cost solution is essential.

Step 4 – Review and Update Your Insurance Policies

Confirmation of all beneficiaries, current amounts, and SGLI coverage is essential. Military personnel are automatically enrolled in Servicemembers’ Group Life Insurance unless they specifically request a lesser amount or none at all, with coverage generally ranging between $50,000 and $500,000.

Look at:

Signing up for health insurance programs such as TRICARE
Homeowner’s or rental insurance; replacement cost; coverage limitations
Auto insurance (driver’s list, operational authorisation)

The family should have access to the policy numbers and documentation.

Read related blog: Beem Pass for Military Families

Through various laws and programs, military members can protect their investments. For example, the Servicemembers Civil Relief Act (SCRA) can reduce interest rates on pre-service loans to 6 per cent.

It provides additional protection against leases, evictions, and repossessions while you are on active duty. These precautions may be necessary. If you believe SCRA may apply to your loans or obligations, confirm your eligibility and visit a financial aid or legal aid office.

You can also seek help from local resources. Military OneSource and other on-base financial consultants can help you with things like tax preparation and deployment-specific pay, allowances, and protections.

Military OneSource and other on-base financial consultants can help you with things like tax preparation and deployment-specific pay, allowances, and protections.

Step 6 – Manage Debt Before Deployment

Before you go, you should pay off any high-interest debt, including credit card and payday loan obligations. If you’re having trouble making your payments, contact your creditors to learn about the SCRA safeguards and hardship programs available to you.

For some loans, interest rate caps or deferrals may be offered. Then, anticipate consolidating your loans into one payment and negotiating a lower interest rate (if available) to help make their lives a little easier.

Then, prioritise making payments on the most significant debt, followed by the debts with the highest interest rates, if you can’t pay them all at the same time.

Read related blog: Best HYSAs for Military Families

Step 7 – Secure Legal and Financial Documents

Make a deployment binder and a safe digital folder with the following contents:

Information about your bank account’s location and accessibility
Documentation for a mortgage or lease
Phone numbers for insurance policies and claims
Current pay stubs and tax records
Power of attorney documents and wills

Contact details for fundamental finance and legal offices, lenders, and landlords

Divide the files into two halves, one to be stored in a safe cloud folder and the other to be kept on hand. You won’t have to spend as much time looking for paperwork while you’re under pressure.

Step 8 – Plan for Taxes and Deployment Exemptions

Deployment can impact your taxes in several ways, including by removing some types of pay and giving you more time to file if you are serving in a war zone.

Use Military OneSource’s MilTax and other basic tax resources to download free tax preparation help designed specifically for deployed service members and their families.

If your loved ones won’t be able to file while you’re abroad, think about the following:

It is advised to file early.
Having a trustworthy family member or expert tax preparer file your taxes for you, or
Through the free MilTax service offered by Military OneSource.

Step 9 – Build or Strengthen an Emergency Fund

Save enough for three months; it makes a big difference. You may share this with others in your household so everyone can take advantage of it.

If you have trouble saving due to pay cycles or scheduling, create a plan to address this issue. You can, for example, set up automatic transfers right after paycheck deposits or set aside money expressly for pay increases due to deployment.

Some families have resorted to employer- or credit union-linked alternatives, as well as to specialist small-dollar instruments created especially for military families, for short-term, interest-free situations.

You don’t want high-interest loans, such as payday loans. Ascertain that paying it back won’t cause any issues later on and that you and your spouse are both aware of when and how the responsible short-term assistance feature—like Beem’s Everdraft™ analogy—will be used. The goal is to find a level of risk avoidance that is comfortable for you. Download the app now!

Step 10 – Plan for Post-Deployment Financial Goals

Planning should be done before deployment. At some point, whether it is when you return or have established a life there, you will need to consider what to do with the additional money or savings you have accumulated.

You can use the money for a home renovation project, a rainy day fund, a TSP (Thrift Savings Plan), or to pay down debt.

The Thrift Savings Plan (TSP) is a vital retirement savings plan for military personnel. Contribution limits have recently changed; for instance, in 2025, the contribution limit will be $23,500, and eligible employees will later be able to contribute for missed contributions.

Always review contribution elections to ensure you are receiving your match deposits and utilising tax-deferred savings options.

Conclusion

Everyone experiences deployment, not only personnel of the armed forces. Make arrangements before your exit.

Allow yourself some financial flexibility to cover any unexpected expenses, establish automated bill pay, enhance your insurance coverage, and understand the protections available through SCRA and SGLI.

The collective efforts will let you sleep easier at night knowing that your most precious possessions are protected.

Even having a financial plan is one way to ensure you are mission-ready. After you have taken care of your domestic items, you can focus solely on your mission overseas. Doing the following will enhance your family, home, and finances.

FAQs on How to Prepare Financially for Military Deployment

What financial protections do military members have under the SCRA?

In addition to offering further protections for leases and court cases, SCRA may cap the interest rates on some pre-service obligations at 6%. Contact the legal office at your base for information on eligibility and application procedures.

How can I ensure my family has access to funds while I’m deployed?

With $50,000 portions, SGLI will often pay up to $500,000. Unless they choose to opt out, military personnel usually enrol automatically. Check with your personnel office that your beneficiary and election information are correct.

Are combat pay and deployment bonuses taxed?

For deployment-related issues, such as those involving multiple states, battle pay exclusions, and extensions, they provide free tax preparation and filing assistance. Utilise them to prevent file issues when you’re deployed.

What should I do with my debts before deployment?

Ensure your funding account has sufficient funds to cover the automatic payments you have set up, including insurance, utilities, and mortgage payments. Set up low balance alerts and confirm the autopay amounts.

How can Beem’s Everdraft™ help with emergency financial needs during deployment?

Always have a durable power of attorney and a list of contacts handy. Not only can your designated person act quickly in an emergency, but your base legal and family support services should also be notified so they can help you.