Today, I am specifically thankful for the financial advantages of being a military family. More often than not, I take so many of these benefits for granted.
It’s so easy to focus on the difficulties of military life. It comes with such unique challenges. But it’s important for us to take a moment and be grateful for the many blessings of this crazy military life.
Early Start to a Career
People joining the military are young. Many join right out of high school. Yes, there are plenty of people who join later, but you usually have to be under 40 to join the military.
Being young, with a steady paycheck and full benefits, is a huge financial advantage – because time is in your favor.
Starting a career early, allows you to take full advantage of the power of compounding interest to set you up for life. Work smarter, not harder.
Steady Paycheck
Military members (for the most part) do not have to worry about whether or not they’ll receive their next paycheck. It’s very basic, but so many people outside of the military cannot say the same about their paycheck.
Can you make more money outside of the military? Maybe. But if you are strategic about maximizing all of your military benefits – slow and steady CAN win the race.
Healthcare
Tricare can be tricky to navigate. But I will be the first to admit that Tricare has saved us on more than one occasion with major medical care. I am forever grateful for that. When I hear about other people’s medical bills outside the military, I am always reminded of how fortunate we are to have this benefit.
BAH and COLA
Military people are not the only ones that have to move for their job. But companies do not always adjust their compensation to accommodate higher living costs. So having a housing allowance and cost of living adjustment that fluctuates based on our location is definitely a plus.
Educational Benefits
The Post 9/11 GI Bill is one of the many reasons people join the military – educational benefits. Many of us do not graduate high school with money for college waiting for us. Not only is this benefit awesome for the servicemember if he/she needs it, but it can also be transferred to dependents.
In addition, many state schools offer free tuition to veterans and children of veterans, if they are a resident of that state. That’s pretty awesome too.
I can tell you I was not eligible for these benefits to go to college… and it took me three jobs to make it through school. I don’t recommend it. This benefit would have been amazing!
Pension
For servicemembers that make it through 20 years, one of the biggest financial advantages of being a military family is the pension. The servicemember can earn a military pension for the rest of their life (and their spouse’s, if you pay into the Survivor Benefit Plan.) It’s a nice bonus if you continue working after your 20 years in the military. But some military people set themselves up to live solely on their pension and retire for good after their time in the military.
Depending on where you decide to live after you retire from the military, some states will not tax your military pension – also a bonus.
Subsidized Travel
Between TDYs and PCSs, it is common to accumulate hotel points and airline miles while you serve in the military.
Some jobs travel significantly more than others. Military families can often travel using hotel points and airline miles accumulated from their time in the military.
Military life also offers opportunities for circuitous travel and COT leave (if you have back to back OCONUS assignments.) Oh, and let’s not forget Space-A travel. When Space-A travel works in our favor, it saves significant amount of money and allows us the opportunity to travel around the world.
For many of us stationed overseas, that in itself, is an opportunity to explore faraway places on a budget.
TSP and Savings Deposit Program
Similar to a 401K, TSP contributions are tax-deferred. This means you do not owe taxes on the money you set aside, but you pay taxes on it when you withdraw it. In addition, you’re paying less income tax upfront because federal taxes are calculated based on your pay after contributing to your TSP.
If a servicemember is deployed to a combat zone, they may qualify for the Savings Deposit Program. As of now, you can deposit up to $10,000 for a return of 10% annually. That’s a nice deal.
VA Loans
You can write a whole article on the benefits that come with VA loans, but I won’t.
In a nutshell, VA loans allow servicemembers and veterans to buy a house without a downpayment and oftentimes have lower interest rates.
By freeing up that money, you can have some flexibility – if you have that money available, you can look into saving/investing it and getting ahead.
Tax Benefits
Some states, with no income tax, offer income tax breaks for military members that maintain legal residency in the state.
Low Cost Life Insurance
Is SGLI the most affordable life insurance out there? Not sure. Actually, I started doing some research to compare SGLI and other life insurance plans. But then I realized my husband would be suspicious if I looked too much into life insurance policies. Ha! So I’ll just leave this here…
SGLI is a decent deal as far as life insurance goes. I consider this a financial advantage for military members. If you are trying to have something in place, just in case, SGLI is not a bad way to go.
There you have it, 11 financial advantages of being a military family that we can be grateful for. These benefits are so ingrained as part of a military family’s life that it’s easy to take them for granted. Hopefully, this list can serve as a reminder to keep our gratitude in check!!
