Sometimes military life comes with uncertainties — not knowing when your next deployment will be or where your next PCS move may take you — yet military service also requires advance planning. One thing you can count on: you need to plan ahead for specific expenses you know are (or may be) coming, well before the funds are needed. 

Dreams and Goals 

Wherever you are in your military career or in your life’s journey, you have certain dreams you’d like to fulfill and goals you want to accomplish.  

• If you have recently joined the service, you may be considering buying your first car. Perhaps you have recently gotten married and are thinking of starting a family. 
• If you’ve been serving for a few years, you’ve most likely had a deployment or PCS move already and you are looking to put down roots and buy your first home. And if you already own a home, maybe it’s time to do some renovations.  
• If you’re retired, you may find you have more time available to take a dream vacation. This could mean going on an overseas trip that requires buying airline tickets and booking accommodations, or maybe you are doing a cross-country road trip and want to buy an RV.  

How to Plan for Specific Expenses 

To make sure your dreams and goals come to fruition, you’ll need to plan for all of your larger and long-term expenses in your overall budget. Before you get started with your financial planning, it’s important know how much you will need to spend. The more specific you can get with the cost of your planned expense, the easier it will be for you to incorporate it into your budget. Here are just two examples of typical reasons you may need to create a specific budget:  

Budgeting for a Baby 

Among the biggest challenges when starting a family is the additional finances that come with it. There are many expenses to consider, some of which might surprise new parents: the cost of childbirth or adoption; expenses beyond what is covered by TRICARE; baby essentials (e.g., diapers, formula, etc.); and childcare services. However, a solid budget and a savings plan will help you achieve financial peace of mind as your family grows.  

Budgeting for a Down Payment 

If you are looking to buy a home, you need to know how much of a down payment will be required. The amount you put down will depend on the type of mortgage you get. A conventional mortgage, for instance, typically requires you to pay at least 3-5% down. So, if you purchase a home for $350,000, your down payment would be between $10,500 and $17,500. However, with conventional mortgages (backed by Fannie Mae or Freddie Mac) private mortgage insurance (PMI) is required when the down payment is less than 20% of the home’s value, which means you will pay an extra amount as part of your monthly payment. VA Home Loans will allow you to purchase a home with up to no money down. But to secure a better interest rate and start building equity right away, you might want to put some down — say 10% or even 20%. While VA Loans do not require a down payment, there are some financial benefits to making one if you’re purchasing your home, including the opportunity to pay a lower VA funding fee and more affordable monthly mortgage payments. 

Set Savings Goals and a Timeline  

If you want to save $10,000 in one year, you will need to save about $800 a month. If you’re unable to achieve that goal within a year, consider lengthening your savings time to two or even three years. Make sure you’ve also considered saving enough to have an emergency fund to cover living expenses for six to 12 months, and other unexpected costs such as a major car repair. 

You can also shorten the timeline needed by banking any “windfalls” you receive, such as deployment and entitlement pay, income-tax refunds, financial gifts received, bonuses or pay increases, or even the sale of personal assets. By depositing those funds into your savings accounts, you can fast-forward the process of saving for your planned expenses. 

Create Your Budget  

Creating a budget doesn’t have to be overwhelming—it’s a practical tool to help you manage your income and expenses while making informed financial choices. Whether you prefer using pen and paper, budgeting software, or a mobile app, the key is finding a method that works for you. Start with a strategy like the 50/30/20 Rule, which allocates 50% of your income to essentials like housing, food, and transportation, 30% to discretionary spending, and 20% to savings, including debt repayment, retirement, or an emergency fund. Keep in mind that housing costs should stay under 28% of your gross income, and total debt should not exceed 36%. Factoring in differences like living on or off base can also make a significant impact as you work toward achieving your financial goals. 

Once you’ve developed your budget, you have to act on it, review it, and refine it to ensure you stay on track. Revisit your budget regularly to see where you can cut spending or reallocate funds from one category to another.  

Saving with Military Benefits 

If you need to save money to pay for a pre-determined expense, you’ll want to take advantage of military-specific offers that will help you save money. Always ask retailers about military discounts, whether they promote it or not, and have your ID ready to show. Shopping on base can cost less than off-base retailers, including groceries and gas. The VA Home Loan can work to your advantage when purchasing a new home. The GI Bill can be used to help you pay for college, technical school, vocational training, and much more. And, of course, you should contribute to the Thrift Savings Plan (TSP), one of the best retirement savings programs available, exclusively offered to military members and other federal employees. 

American author Napoleon Hill said that “a goal is a dream with a deadline.” If you have dreams that you want to make a reality, create your deadline by mapping out your financial strategy and giving yourself a timeline. When you’re working toward affording a specific expense and know exactly what you need to achieve, you’re halfway there.