Creating a Financial Backup Plan Before Deployment

What's Happening

• •Service members are advised to create a financial backup plan before deployment.
• •Key elements include appointing a trusted person to manage finances.
• •Setting bills to autopay and having cash reserves are strongly recommended.

Why It Matters

For service members, especially those preparing for deployment, having a solid financial backup plan is not just a good practice; it’s a necessity. This plan helps ensure that families remain financially secure and that service members can focus on their duties without added stress about their finances.

What Changes Now

• •Service members should immediately start creating their financial backup plans. This involves designating a trusted person and setting up autopay for bills to avoid disruptions.
• •Families need to ensure they have access to the necessary financial tools and information. This may require updating contact information and permissions for online banking.
• •Establishing a cash reserve is crucial for unexpected expenses. Service members should determine how much cash to set aside and where it will be securely stored.

What to Watch

• •Monitor upcoming deployment dates and prepare financial plans accordingly. This ensures that all financial arrangements are made well in advance of the deployment.
• •Stay informed about any changes in pay or benefits during deployment. Understanding how these changes affect finances can help in adjusting the backup plan as needed.
• •Watch for updates from financial institutions regarding services for deployed military members. These updates can provide additional resources or assistance for managing finances during deployment.

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More Context

• •Why a Financial Backup Plan is Crucial: For active-duty service members, particularly those in the E-4 to E-6 rank range, preparing financially before deployment is essential. Deployments can lead to unexpected expenses and challenges, making it vital to have a plan that ensures financial stability for both the service member and their family. A well-structured financial backup plan can alleviate stress and provide peace of mind during deployment, allowing service members to focus on their mission without worrying about their finances at home.
• •Key Components of a Financial Backup Plan: A comprehensive financial backup plan should include several critical components. First, appoint a trusted person, such as a spouse or a close family member, who can access your financial accounts and make necessary decisions while you are away. Second, setting up automatic payments for bills ensures that essential services remain uninterrupted, preventing late fees or service disconnections. Lastly, having cash reserves can help cover unexpected expenses that may arise during deployment, providing a financial cushion for your family.
• •Steps to Implement Your Plan: To effectively implement your financial backup plan, start by reviewing your current financial situation. Identify which bills need to be set on autopay and ensure that your trusted person has access to your accounts. This may involve providing them with necessary account information and setting up permissions for online banking. Additionally, consider setting aside a specific amount of cash in a secure location to handle any emergencies that may arise while you are deployed. Regularly review and update your plan to accommodate any changes in your financial situation.
• •Monitoring Your Financial Situation During Deployment: While deployed, it's important to stay informed about your financial situation. Use online banking tools to monitor transactions and ensure that all bills are being paid on time. Communicate regularly with the person you designated to manage your finances, and make adjustments to your plan as needed. If any issues arise, address them promptly to avoid complications that could impact your family’s financial well-being.