What Should You Do With The Extra Deployment Pay?
Extra deployment pay! One of the “benefits” to a deployment. Earning extra money each month is going to help you and your family. The money can give you a chance to work on your long-term goals and to work towards what you and your spouse want to do with your life.
There are different ways to spend that extra money. Some are smarter than others. If you are not sure what to do with that extra deployment pay, think about what you are saving for and what would be the best way to use the money. Talk to your spouse so that you are on the same page. Make a plan about the money before they leave for deployment so that you don’t run the risk of spending the money on something you shouldn’t.
Need some ideas on what to do with that extra deployment pay?
To the Money in Savings
Saving your money is going to be a good thing! You can set up a special savings account for emergencies, for buying a house later on down the line, for a PCS or just to have that extra money in your account. You can also save through a TSP or The Thrift Savings Plan. What is the TSP? This program is a Federal Government-sponsored retirement saving and investment plan. You can visit the website for more information.
Buy a Car
Another way to use your money is to save for a car or to even pay down the car you already have. Being able to drive a dependable car during a deployment is important. When you are trying to decide on a new car, take some time to figure out what would be best for your family. Think a few years ahead. If you have one child and think you want a few more in the next few years, buying a smaller car might not be the best idea. Cost is also a factor. Think about how much you want to spend, how big you want your monthly payments to be and how much you would need to save to get the car that you want.
Save for a Trip
After my husband’s first deployment we were able to spend a month in California during his block leave. We were able to use the money from the deployment to do this and going on this trip was worth every penny. We got to spend time with family, see friends and take a break from the Army world that we had been such a part of for the last 15 months. We also got to spend a weekend away just the two of us while my parents watched our boys. You don’t have to go on a big or long trip. You could plan a weekend away with the family or something fun for the kids like Disney World. If you put some of the extra money away each month you should have enough for a nice family vacation when they get home.
Baby Stuff
Baby stuff can get expensive, especially items like a crib or a car seat. If the timing is right, use some of that deployment money on baby items. This will allow you to get the products that you want and have enough money to do so. Make sure to look for deals and take advantage of post-wide yard sales. You can buy certain items 2nd hand that still have a lot of life left in them.
Pay Down Debt
One way you can use that extra deployment pay to get ahead is by using that extra money to pay down debt. You can pay off your car, that credit card you have been hanging on to or even your student loans. You can also put extra down on your home if you are able to do so. Having that extra money will allow you to either pay off your debts or pay them down enough so they are not as overwhelming.
If you are getting ready for a deployment, you can see how much the extra pay is going to be. Then you can start to come up with a good plan before your spouse deploys. Come up with a budget and a plan for every extra dollar they will be getting. Know that sometimes the money will take almost a month to kick in.
The DoD’s Saving Deposit Program is another great option! There are some limitations to it, but you can deposit money into it after being in country (in a hostile area) for 30 days but can’t withdraw until the soldier return home. My husband was single on his first deployment to Afghanistan, and since he had no need for his paycheck while in country, he looked into doing this, but ended up not doing it for some reason. Although the interest you earn in the SDP is taxable, it gives you up to a 10% return on investment annually (compounded quarterly.) I don’t know of many savings accounts where you get a 10% return on investment!