Why Deployment Is a Financial Opportunity
Deployment is one of the most challenging periods in a military family's life — but it also creates a significant opportunity to save and build wealth. With reduced expenses, tax-free pay in combat zones, and access to special savings programs, service members who plan ahead can come home in a substantially stronger financial position than when they left.
Before Deployment: Setting Up Your Financial Foundation
Build an Emergency Fund
Before you deploy, ensure your family has 3 to 6 months of living expenses in an accessible savings account. This protects your household from unexpected costs while you're away and unable to respond quickly.
Create a Power of Attorney
A financial power of attorney allows your spouse or trusted family member to manage accounts, pay bills, and handle financial matters in your absence. Work with your JAG office to set this up before you leave.
Review and Automate Your Bills
- Set up automatic payments for rent/mortgage, utilities, and loan payments.
- Review subscriptions and cancel anything you won't use during deployment.
- Update your beneficiary designations on SGLI and retirement accounts.
During Deployment: Maximize Your Savings
Combat Zone Tax Exclusion (CZTE)
If you're deployed to a designated combat zone, your military pay may be fully or partially excluded from federal income tax. This can result in thousands of dollars in additional take-home pay over a deployment. Consult your finance office to confirm your zone status.
Savings Deposit Program (SDP)
The Savings Deposit Program is a government-sponsored savings account available to service members deployed to a combat zone or receiving hostile fire pay. It offers a guaranteed 10% annual interest rate on deposits up to $10,000 — far above any commercial savings rate. This is one of the best savings tools in the military financial toolkit.
Thrift Savings Plan (TSP) Contributions
Consider increasing your TSP contribution percentage during deployment, especially since your pay may be higher (with combat pay and allowances) and your expenses are lower. Contributions from combat zone pay are also tax-free, making Roth TSP contributions particularly advantageous.
After Deployment: Returning Home Financially Smart
Avoid the "Deployment Splurge"
It's natural to want to celebrate your return, but large impulse purchases immediately after deployment are one of the most common financial mistakes. Give yourself a spending cooling-off period of at least 30 days before making any major purchases.
Reassess Your Budget
Your expenses will change when you return — you'll lose some deployment allowances, but gain others. Sit down and update your household budget to reflect your new income and expense reality.
Put Deployment Savings to Work
- Pay down high-interest debt first.
- Top up your emergency fund if needed.
- Consider investing in a Roth IRA (you have until tax day to contribute for the prior year).
- If homeownership is a goal, begin saving for a down payment or explore your VA loan benefit.
Quick Reference: Deployment Financial Checklist
| Stage | Key Actions |
|---|---|
| Before | Emergency fund, POA, automate bills, review insurance |
| During | Maximize SDP, increase TSP, track CZTE eligibility |
| After | Update budget, pay down debt, invest savings wisely |