Managing Finances During a Permanent Change of Station (PCS)

1. Your Financial Routine Gets Disrupted

• New Living Costs: PCS can mean a whole new set of living expenses. Higher (or lower) costs for rent, groceries, and utilities can wreck your budget fast if you don’t plan.
• Temporary Housing: If you need a place to stay while your new home’s ready, you’re looking at extra costs that aren’t always covered upfront.
• Moving Expenses: Packing and transporting everything? That’s a bill in itself. Add in gas, meals, and lodging on the way to your new station, and your budget could already be in trouble before you even settle in.

2. Financial Adjustments and Budget Shifts

• Debt Can Pile Up: Covering PCS expenses often means credit cards, and that adds up quickly, especially if your savings aren’t enough. It’s a fast way to get into financial trouble.
• Adjusting Your Budget: You’ll need a new budget to handle these changes. And keep in mind, not all PCS-related expenses are predictable. An emergency fund is essential.

1. Pre-PCS Prep

• Create a Budget for the Move: Estimate everything: moving costs, temporary housing, and travel expenses. Don’t forget to add a cushion for unexpected costs.
• Build an Emergency Fund: PCS expenses can hit hard. Without a financial buffer, you could end up relying on loans or credit. Build a fund now, and save yourself the headache.
• Use Military Resources: Get to know your benefits. Use the military’s allowances and reimbursement options (check the Defense Travel Management Office website for details).

2. Manage Your Moving Expenses

• Understand Your Allowances: You’re entitled to shipping and travel reimbursements. Don’t leave money on the table—know the ins and outs of what’s covered and what’s reimbursable.
• Track Every Dollar: Save every receipt and document every expense. Staying organized here can save you stress later on.

3. Update Your Financial Accounts

• Change Addresses on Everything: Notify your bank, insurance, and any creditors to make sure you’re not missing statements.
• Review Insurance Policies: Make sure your home, renters, and auto insurance are updated for your new location.
• Tax Implications: A new state may mean new tax rules. Check this out ahead of time so you don’t get caught off guard.

4. Handling Financial Challenges Post-Move

• Keep an Eye on Debt: Track your spending, stick to your budget, and don’t let debt build up. Get on a plan to pay off high-interest debt first.
• Use Your Emergency Fund for Emergencies Only: Unexpected PCS costs? That’s what the fund is for. Avoid additional debt wherever possible.
• Reassess Your Financial Goals: Update your budget and financial goals based on your new station’s cost of living. Make sure your long-term financial plans still make sense.

1. Servicemembers Civil Relief Act (SCRA)

SCRA can help you manage your finances during a PCS. Benefits include interest rate caps, protections against foreclosure, and lease termination if you have to relocate.

2. Military Lending Act (MLA)

MLA caps interest rates on certain loans and requires lenders to disclose costs upfront, giving you more control over credit.