Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial Planner

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Being a military spouse can throw constant curveballs your way. Between demanding work schedules for the servicemember, frequent moves and living alone or taking on single-parenting duties during deployments, the life of a military spouse is all about navigating disruption.

If you're a military spouse handling the family finances, whether by choice or necessity, this article aims to help you feel empowered and prepared to make smart financial decisions.

Here are practical tips and resources that will help you manage your finances and military life.

Short-term financial goals

Having the right amount of cash set aside as emergency savings can be a simple way to be prepared for the unexpected. Saving at least three to six months' worth of non-discretionary expenses is recommended.

Non-discretionary expenses include those items you must pay each month, such as rent/mortgage, car loan payments, food, gas, childcare and so on.

The recent government shutdown serves as a reminder of why an emergency savings account is imperative. It will provide some breathing room if there is a disruption to your normal expected income. To build up an emergency fund:

• Pay yourself first after receiving each paycheck.
• If the servicemember is receiving additional pay for items such as Family Separation Allowance, combat pay, hazardous duty pay, etc., try to set aside a portion of those extra funds to build up your savings. If you're unsure whether the servicemember is receiving these special payments, have them log into myPay to review their Leave and Earnings Statement (LES).

If you are struggling to save, take some time to set up a budget to prioritize monthly savings. A good rule of thumb is to spend 50% of monthly after-tax pay on your non-discretionary items, 30% on discretionary items (dining out, movies, travel, entertainment) and 20% on savings (retirement savings, emergency fund, saving for other goals).

Long-term financial goals

Contributing to retirement accounts
Whether the servicemember plans to serve for at least 20 years to earn a military pension or wants to return to civilian life after four years of service, it's never too early to begin planning for retirement.

The servicemember can contribute to the Thrift Savings Plan (TSP) and should be contributing at least 5% after one year of service under the Blended Retirement System to maximize the government match.

It's important for the servicemember to review their contribution percentage by logging into TSP.gov or logging into myPay to make updates to contributions.

Similarly, if you're employed and have a retirement plan, it's always best to contribute at least enough to receive the full match from your employer, if applicable, so you aren't leaving free money on the table.

It's even better if you can afford to contribute the maximum amount ($24,500 for 2026 if under age 50, and an additional $8,000 for a catch-up contribution for those over 50).

Traditional and Roth IRAs
If you are not currently employed, you can still save for retirement by making annual contributions to a traditional or Roth IRA (subject to income limitations).

While the maximum contribution limits for IRAs ($7,500 for 2026 if under age 50 plus a $1,100 catch-up contribution for those age 50 and older) are not as high as for an employer-defined contribution plan (401(k), 403(b), etc.), you're still able to contribute without having earned income, as long as you file taxes married filing jointly (MFJ) and the servicemember is employed.

Of course, if both you and the servicemember are employed, you can still contribute to a traditional IRA (tax deductibility subject to income limitations) in addition to your employer retirement plan.

Contributions to a Roth IRA are subject to income limitations, so you will want to ensure you are below those Modified Adjusted Gross Income (MAGI) limits before contributing to a Roth IRA.

Choosing between a traditional or Roth IRA will depend on whether you want to get a potential tax break now (traditional IRA) or get a potential tax break in retirement (Roth IRA). If you are eligible to receive a tax deduction, consider a contribution to a traditional IRA. This allows you to forgo taxes now and then pay taxes when you take a distribution in retirement (after age 59½).

Alternatively, if you prefer to pay the taxes now and are below the income thresholds, consider a contribution to a Roth IRA.

These contributions, as well as the earnings on the contributions, can be withdrawn tax-free in retirement, provided the account has been open for at least five years and you have reached age 59½.

As mentioned, there are rules and income limitations associated with traditional and Roth IRA contributions, so consider consulting with a tax professional to ensure you're compliant with these rules. Military One Source provides free tax preparation and consultation through MilTax and is a great resource for the military community.

Education and career benefits

It can often be challenging for military spouses to find employment due to frequent relocation. For those spouses looking for new employment or those who may want to explore starting a career or going back to school, the military offers several resources and benefits to help you.

Post-9/11 GI Bill
Servicemembers may be eligible to transfer some or all of their Post-9/11 GI Bill benefit to their spouse. The GI Bill covers tuition, housing and books.

Military Spouse Preference Program
The Department of Defense has a program that gives priority consideration to military spouses for DOD civilian jobs. Requirements include being the spouse of an active duty servicemember and being listed on the Permanent Change of Station orders to a new duty station.

Military Spouse Licensing Relief Act (MSLRA)
The MSLRA was passed in 2023 to alleviate challenges military spouses face when relocating and who hold state occupational licenses (for example, teachers, nurses and realtors).

This act allows the license holder to transfer their license to the new state. Additionally, each branch of service may have a licensure reimbursement program (up to $1,000) for military spouses who relocate. Check with your specific branch of service.

Military Spouse Education and Career Opportunities (MySeco)
The DOD offers free career counseling, education scholarship opportunities and much more through MySeco.

Military Spouse Residency Relief Act (MSRRA)
If you are a military spouse with earned income, it can be confusing to determine in which state you need to file your state tax return. The MSRRA provides flexibility in choosing either your own state, the state where the servicemember claims residency, or where you are currently stationed.

This allows you to be strategic, especially if one of those states happens to be a state with no income tax.

This can be a complex topic, so discuss it with a tax adviser. Again, MilTax will be knowledgeable in these military laws and may be a good resource for you.

Content in this article is for general information only and not intended to provide specific advice or recommendations for any individual. This information is not intended to provide individualized tax or legal advice. Discuss your specific situation with a qualified tax or legal professional.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.