Moving is a part of military life. At some point, whether you're a new recruit or have been in for years, you will have a permanent change of station (PCS). A PCS comes with many unknowns. Those uncertainties can cause stress, especially when it comes to your money.
A PCS shouldn't break your budget or drain your savings. Planning and awareness can make the process smoother for your finances. Here are some tips for navigating your finances through a PCS.
Know What the Military Covers
Before you move and start spending, you must understand what the military does and does not cover so you can plan and budget. You're entitled to some allowances and reimbursements during a PCS. Knowing your entitlements helps you make informed financial decisions that can save you money and worry. The benefits you receive depend on your situation.
Read Next: How to Prepare Financially for the Transition to Civilian Life
Per Diem
A per diem is a daily allowance for meals and lodging while traveling to your new duty location. The amount you receive depends on the location, travel method (air or driving), age and number of your dependents.
Dislocation Allowance (DLA)
DLA “helps” cover expenses for moving your household. It is a flat amount meant to partially cover the costs of a government-ordered move. The amount you receive depends on your rank and whether you are moving with dependents.
Temporary Lodging Expense (TLE) or Temporary Lodging Allowance (TLA)
The Temporary Lodging Expense (TLE) and Temporary Lodging Allowance (TLA) partially cover temporary lodging costs during a move, depending on whether you're in the continental United States (CONUS) or outside the continental United States (OCONUS). TLE is for CONUS moves, and TLA is for OCONUS moves. The amount you receive depends on the number of eligible dependents.
Monetary Allowance in Lieu of Transportation (MALT)
If you're driving to your next location, you'll be reimbursed based on mileage for the official distance and the number of authorized travelers.
Advance Pay (AP)
Advance pay is a loan of up to three months of your base pay, minus any deductions such as the Servicemembers’ Group Life Insurance (SGLI), for out-of-the-ordinary expenses during a PCS. This is borrowing money, which you should avoid, if possible, but know that this resource is available instead of taking out a high-interest loan or using your credit card for moving expenses.
It’s best to contact your installation's finance or transportation office to get exact amounts and eligibility details before starting your move. You can also review the Joint Travel Regulations (JTR) or Defense Finance and Accounting Service (DFAS) to see when an entitlement is or is not payable. Knowing these numbers helps you build a realistic PCS budget based on what the military will actually pay.
Build a PCS Fund
It's not a question of "if" unexpected expenses will happen during a PCS. It's “what” they will be and how much they will cost you. You’ll also have initial expenses or have to wait for your travel expenses to be reimbursed. Building up a PCS fund can help you prepare better for higher monthly expenses than usual.
Car repairs pop up during a move. Or your pet might require a last-minute health certificate for flying. Sometimes, you’ll need extra cash for rental or utility deposits.
Building a small PCS fund for your move can greatly reduce stress and help you avoid going into debt when additional moving or surprise expenses come up.
Stick to Your Budget
Don't use your PCS as an excuse to overspend. Stick to your normal budget so that you're not overspending. Moving changes many things in your budget. That can mean new or higher expenses. Your budget is a guide to stay on track through all the changes. Then, once you're settled, you can redo your budget with the changes in your income and expenses.
If you don't have a budget, now is the time to create one. Knowing your monthly income and expenses helps you make good decisions with your money.
Close Out Your Accounts
It sounds simple, but many people forget to close their accounts before moving. Before leaving your current location, list all the services you'll need to cancel, transfer or update, such as your utilities or gym memberships. You’ll want to get any deposits back that you are owed. It’s wise to review your bank and credit-card statements to double-check, especially for accounts you pay yearly, such as pest control.
Call each company in advance to notify them of your move and request to close your account. Some providers require notice, so don't leave it to the last minute. You may need to share a copy of your orders to break leases or memberships. Document all your calls and cancellations in case there are issues later.
Change Your Address
It can be easy to forget, but updating your address is something you don't want to forget about when you're moving. Call all of your billers or go online and update your address. You should also change your address with the post office. If you don’t have a forwarding address yet, you can put a hold on your mail until you have a new address.
A missed bill or important piece of mail can lead to late fees or a ding on your credit. Not changing your address can also lead to lost or unclaimed money you’re owed from deposits or tax returns, so add it to your list of things to do before you leave.
Use Free Military Resources
There is a lot to keep track of or be aware of during a PCS. You don't have to figure it all out on your own. The military has free resources and guides to help you budget and prepare for a move.
- Installation Financial Readiness Centers have financial counselors who can walk you through your PCS budget and help you make a plan.
- The Office of Financial Readiness (FINRED) has a worksheet to help you create a moving financial plan.
- Military OneSource provides checklists, moving tools and budgeting help tailored for service members.
- Your installation's transportation and finance offices can give detailed guidance on entitlements and reimbursements.
These resources can save you time, money and worry. They’ll also help you avoid mistakes, making the process of a PCS less overwhelming.
PCSing is stressful for everyone, but it doesn't have to mess up your finances. The key is to start preparing as soon as you can. Make the effort to understand what the military pays for, stick to your budget and build up your savings for unexpected expenses. By planning and using the resources available, you'll be in a better position to navigate your finances during and after your PCS.
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