Your Guide to Saving for Competing Priorities as a Veteran

Balancing your financial priorities as a veteran—while adjusting to civilian life—can be daunting. This checklist is designed with your unique needs in mind, helping you organize and prioritize your savings goals, while accounting for the challenges and opportunities that come with transitioning from military service. Let’s break it down step by step.

1. Assess Your Current Financial Situation

• Review your income, including any military benefits (e.g., VA disability, GI Bill, pension) and civilian income.
• Identify any gaps between your income and expenses, especially with the loss of military allowances like BAH (Basic Allowance for Housing).
• Account for any upcoming life changes (e.g., relocation, transition to a civilian job, changes in health benefits).

2. Identify Your Financial Priorities

• Short-Term Goals:
  • Emergency Fund: Start with a goal of saving $500, then aim to build 3-6 months of living expenses. This fund will help cover unexpected expenses, such as car repairs or healthcare costs, without relying on credit.
  • Transition Costs: Consider setting aside money for relocation expenses or moving from military housing, as well as civilian job hunting costs like professional attire or certifications.
• Mid-Term Goals:
  • Debt Repayment: Pay down any debt, especially high-interest debt like credit cards. Focus on reducing balances before they become unmanageable during your transition.
  • Major Purchases: Plan for necessary purchases, such as a new vehicle, a home, or family needs that may arise after leaving the military.
• Long-Term Goals:
  • Retirement Savings: Contribute to retirement accounts like the Thrift Savings Plan (TSP) or a civilian 401(k) or IRA. Your military service may have provided a strong foundation, but continuing to save in your civilian career is key.
  • Education & Training: If using the GI Bill or other veteran education benefits, budget for additional expenses like books, fees, or technology that may not be covered.

3. Create a Spending and Savings Plan

• Budgeting:
  • Include necessary living expenses such as housing, transportation, and groceries. Adjust your budget to reflect any differences between military and civilian costs (e.g., no longer receiving military discounts or commissary access).
  • Allocate a portion of your income for each of your financial priorities, including saving for both short- and long-term goals.
• Automate Your Savings:
  • Set up automatic transfers from your checking account to your savings accounts, making saving a consistent habit.
  • Regularly review your spending and savings plan to ensure it aligns with your financial goals, especially if your income changes post-service.

4. Build Your Emergency Fund

• Start small, with an achievable goal of $500, and then work towards saving 3-6 months of civilian living expenses. This can act as a financial buffer as you navigate VA claims, benefits, and civilian job income.
• Keep this fund separate in a dedicated, easily accessible savings account to ensure it’s available when needed.

5. Focus on Debt Repayment

• Prioritize high-interest debt, like credit cards or personal loans, which can easily spiral during the military-to-civilian transition.
• Use a strategy that works for you—whether it’s the snowball (smallest debt first) or avalanche (highest interest first) method—to stay organized.
• Once high-interest debt is paid off, redirect those payments toward your savings or retirement fund to maximize future benefits.

6. Save for Retirement

• Even if your post-military income is lower, continue contributing to your TSP, 401(k), or IRA. Saving for retirement ensures that the benefits of your military service are carried forward into civilian life.
• If your employer offers a matching contribution, take advantage of it—it’s essentially free money toward your retirement.
• Over time, aim to increase your contributions as your civilian income stabilizes.

7. Revisit and Adjust Your Plan

• Periodically review your financial priorities, especially after milestones like starting a new civilian job, buying a home, or receiving veteran benefits.
• Celebrate progress—whether it’s paying off debt, reaching a savings goal, or simply maintaining a balanced budget.
• Stay flexible as you transition, recognizing that your financial needs may shift over time, particularly as benefits or pay evolve in your civilian career.

8. Utilize Veteran Resources

• Explore veteran-specific financial resources and assistance programs. Organizations like the VA, Veteran Service Organizations (VSOs), and community groups often offer financial counseling or grants to help with emergency expenses or education.
• Consider using a Financial Advisor has experience working with Veterans and understands the unique challenges that come with transitioning from military to civilian life. You can use this free service from the Coordinated Assistance Network and Foundation for Financial Planning (FFP) which provides financial guidance, advice, and planning to active military servicemembers, veterans, and their families via the services of pro bono (free) CERTIFIED FINANCIAL PLANNER™ professionals.

Veteran Saves also wants to be your partner! Take the Veteran Saves Pledge today and we’ll stick with you on your savings journey. Along the way, we’ll send you emails and texts full of tips and resources to keep you motivated and on the right path!