Military readiness requires preparation for the unexpected. Airmen and Guardians train for changing conditions, demanding assignments and missions that can shift with little notice. But readiness extends beyond what happens on duty. Having a strong financial foundation at home can help servicemembers create enough flexibility to handle the unexpected when it happens.
“While you can’t predict every expense or know exactly when the next set of orders, PCS move, deployment or unexpected challenge will come, you can prepare for it,” said Thomas Racca, manager of personal finance management at Navy Federal Credit Union. “It starts with the financial habits you build every day. Having savings set aside, understanding where your money is going and keeping debt manageable can reduce stress and give you the flexibility to adapt when plans change.”
An emergency fund is one of the most important places to start. Setting aside even a small portion of each paycheck can gradually create a cushion for costs that weren’t part of the plan, whether that’s an unexpected car repair, a temporary housing gap or expenses associated with a move. The goal doesn’t have to be saving a large amount all at once. Consistently setting aside what you can helps build that cushion over time.
Once you’ve built a base level of savings, making a plan, such as creating a realistic budget, to tackle high-interest debt can free up more room in your budget. Understanding military benefits provided by financial institutions is another important part of that foundation. Additionally, programs such as housing allowances, relocation support and the Post-9/11 GI Bill can help offset some major life expenses. Knowing what benefits are available and how they fit into your budget can help you make the most of your income while continuing to save for longer-term goals.
Not every dollar in savings serves the same purpose, either. Money that may be needed for a PCS, emergency or another near-term expense is generally best kept in an account that’s accessible, such as a savings account. Money that won’t be needed right away may be better suited for a certificate, which can be a great way to grow your savings over a set term.
The right approach can also vary over time. A new assignment, promotion, deployment or growing family can all change what a household needs from its budget. Rather than setting a financial plan once and forgetting about it, make a habit of checking in on your spending, savings and debt and adjusting as circumstances change.
“Just like readiness is built through preparation, financial confidence is built through habits,” said Racca. “Tracking your spending, growing your emergency savings and managing debt may seem like small steps, but they create a stronger foundation for whatever comes next. The most important thing is to start. Take 15 minutes this week to review your spending, identify one area where you can save a little more and make a plan for that money before it gets spent.”
Navy Federal offers financial resources designed to help members put those habits into practice throughout different stages of military life. Members can use My MakingCents™ to see their Navy Federal accounts alongside accounts at other financial institutions, create a budget, track spending, monitor credit and manage recurring payments in one place.
“We often talk about readiness in terms of training and preparation, but financial readiness is part of that equation too. When your finances are in order, you can spend less time worrying about money and more time focusing on your mission, your family and your future,” added Racca.
Financial readiness isn’t about having every expense mapped out or knowing exactly what the next set of orders will bring. It’s about having the financial foundation to adapt when plans change. For Airmen, Guardians, and their Families, building that foundation today can mean being better prepared for whatever comes next.
This content is intended to provide general information and should not be considered legal, tax, or financial advice. It is always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.