Deployment Savings Opportunities - Military Saves

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					 Deployment Savings
 Using deployment financial
opportunities to boost savings
Deployment and savings

 • Making a budget
   is like deciding
   how to divide up
   the pie
 • Deployment       • Having more pie
   offers             doesn’t mean
   opportunities to   you have to eat
   make the pie       more pie
Deployment and financial benefits
  • Deployment offers
    allowances, tax breaks,
    incentives and special
  • The Department of
    Defense currently has 70
    types of special pays
    and allowances,             • Find detailed
    depending on your             information through
    deployment and duty           your service financial
    status, branch of             office or online through
    service, and duty station     myPay
    on the books

What to save during deployment

 • Combat zone tax exclusion
 • Pay yourself instead of the government
    – As an E-6 with 6 years, you earn approximately
      $35,410 per year
    – The taxes generally add up to $8,800.00
    – Set aside $8,000 in a retirement account with
      2% interest for 10 years
    – Saving earns you $1,769.60

What to save during deployment
 – Make extra payments on credit cards,
   student loans, car loans or mortgages.

     • A credit card with a $15,000 balance will
       never be paid off with the minimum
     • With a payment of $500/month, it will
       take nearly 3 years and over $2,000 in
       interest to pay off
     • A lump sum payment of $8,000 towards
       this debt saves more than $1,500 in
       interest payments

What to save during deployment

 • Per diem while TDY
    – Minimize spending, maximize income
       and saving
 • The difference that $5-$10/day can make…
    – Over a week: $35-$70                    VS
    – Over a month: $140-$240
    – Over a year: $1820-$3640
 • Small saving can be the difference
   between 1 cup of designer coffee per day
   and an HDTV
    – Paid in cash
    – No debt and no interest payments

What to save during deployment

 • Family Separation              • Use this cash for taxes,
   Allowance                        retirement, credit card
    – FSA is payable at             and loan payments,
       $250.00 per month and        college savings, home
       accrues from the day of      repairs, etc
       departure from the
       home station and ends      • Also consider using it for
       the day prior to arrival     something that the
       at the home station, in      whole family will enjoy
       addition to any per          for years
       diem or other

What to save during deployment
 • Maybe you are considering a • If you pay in cash with your
   family vacation after your       Family Separation
   deployment ends…and nothing      Allowance Savings, you pay
   says family like Mickey Mouse!   $1076
 • 4 passes for 4 days in Disney
   World cost $1076
                                  • If you put this on a
                                    credit card and only pay
                                    the minimum, you will
                                    pay more than $2,600
                                    over 14 years

What to save during deployment
•   Live alone?
•   Going to be gone for 3
    months? 6 months? a year?
                                  • Do you rent?
                                     – This is a great way to set
•   Consider renting out your          aside money for a down
    house or apartment for             payment for your first
    extra cash                         home
•   Subletting allows you to
    cover your housing costs
    while you still collect BAH
                                  • Do you own?
                                     – This is a great way to put
                                       money aside for home

Ways to save during deployment

 • Create a rainy day fund
    – Cash has its
      advantages that credit
      and long-term
      accounts don’t offer
    – Short term savings can
      really save you from
      the unexpected

Ways to save during deployment
 • See you local credit union or
   military bank to learn more
    – Basic Savings Accounts
    – Certificates of Deposit
    – College Savings Accounts
    – IRAs and other
      retirement accounts
    – Investment options

Ways to save during deployment

 • Get sound advice.                    • See a Personal Financial
 • Online, check out                      Manager at you Installation for Money &          or arrange a consultation
   Mobility, information specifically     with a Certified Financial
   for military personnel and their       Planner through Military
   families                               OneSource.

Ways to save during deployment

 • Financial assistance   • These organizations
   is also offered          offer a wide variety
   through:                 of services and
    – Army Emergency        assistance.
       Relief             • More information,
    – Navy-Marine           including contact
       Corps Relief         information for the
       Society              Relief Society
    – Air Force Aid         nearest to you, each
       Society              organization can be
                            found online

Ways to save during Deployment
 •   Saving Deposit Program         •   E-6 salary after 6 years=$35,410
     (SDP)                          •   Save 10%=$3,451
      – For military members        •   After 12 months in SDP savings =
         deployed in combat             $3,809
         zones, qualified           •   Reward for saving = $358
         hazardous duty areas, or   •   Save the maximum = $10,000
         certain contingency
                                    •   After 12 months in SDP, savings =
      – Annual interest rate of
                                    •   Reward for saving = $1,038

Ways to save during deployment

• TSP is a Federal
  retirement savings and
  investment plan
• For more detailed
  information, visit

Join a community of savers


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