Financial Goal Setting for Military Families

It can be challenging to make a plan for your finances. But it’s even harder when you don’t know where you’re going. 

For military families, there can be a lot of uncertainty about things like where you’ll be stationed in the future and how much income you’re going to earn. When you’re in this constant state of transition, it makes it difficult to plan for anything, let alone your money. That’s one reason military families report that it’s harder for them to manage their finances than it is for civilian families.

However, that doesn’t mean you can’t have financial plans or goals. It just means you need to approach them with flexibility, and be ready to adjust when unexpected roadblocks come up. Here are steps you can follow to achieve your financial goals as a military family, regardless of what comes your way.

1. Make a list of your goals

It may sound crazy, but a great place to start when planning your financial future is to start with your daydreams. Do you dream of owning a beautiful home someday? Do you want to be debt free? Are you hoping to start a business? 

Take some time to write down your financial dreams for your family, both big and small, so you can determine which one is your highest priority. This will also help you start mapping out the steps needed to turn your daydreams into achievable goals.

2. Get specific about numbers

Next, you need some specific details to help you map out your path to success for your goals. For each goal, take the time to do your research and pinpoint the following information:

• Cost: Look up key figures, like the total amount of debt you want to pay off or the average cost of houses in the area where you’d like to buy a home.
• Resources: Check to see if the military has resources that can help, such as VA home loans or tuition assistance.
• Inventory: Take an inventory of the cash, assets and resources you already have that can be used toward your goal.
• Budget: Review your budget to see how much you can save for your goal from each pay check. Note that this amount may have to change any time your income or expenses change.
• Timeline: Based on the amount you can save each pay period, calculate how long it will take you to achieve your goal.

If you’re not happy with how long it will take you to reach your goal, there are a few adjustments you can make. Try cutting back on your expenses, increasing your income, and/or searching for more resources to help you out.

3. Determine your action steps

Now that you know what your goal is and how much money it will take to get there, you can start breaking things down into small, achievable action steps.

Some of your steps will vary depending on the goal, but here are examples of steps you may need to take:

1. Review your financial statements to find costs you can cut, like unused subscriptions or automatic payments for services you’re not using.
2. Open up a high-yield savings account (HYSA) so you can earn interest on the money you save.
3. Set up an automatic deposit to your savings from each paycheck.
4. Pull your credit reports from AnnualCreditReport.com and review them to see if you need to make improvements. 
5. Set up an appointment with an NFCC-certified credit counselor to review your budget, credit and debt, and to help you pinpoint resources and come up with good strategies.
6. Apply for any assistance that might apply to your situation, such as first-time homebuyer programs.

The idea of taking all of these steps at once can be really daunting. So instead of trying to do all of this in one day, try scheduling an hour a week or even an hour a month where you focus on completing your action steps.

4. Plan for setbacks

Even the best-made plans will hit some bumps in the road. There are bound to be unexpected setbacks, like a car repair or an unexpected PCS, that throw off your savings plans. But don’t let temporary financial hardships derail you from your goals. Instead, be prepared to adapt. 

If your budget changes, look for solutions and not for reasons to quit. You may need to do things like cut more expenses, reduce your savings contribution or extend the timeline to reach your goal. But whatever the challenge, don’t give up. With military life, transition is inevitable, but that doesn’t mean you have to keep delaying your financial goals. 

The sooner you outline your plan, and the faster you refocus after setbacks, the sooner you can turn your financial dreams into a reality.