How you can transition from the military to civilian life financially

When you are about to finish your service, you may have a lot of questions regarding how you can go back to civilian life and cope well. You may be worried about the state of your finances and if this will change when you come back home. It is normal to have such concerns during this transition. The following steps can make the process smooth for you, especially financially.

Establish a cash buffer for the transition. It is not obvious that you will find a new job immediately you leave your old one. You should have a cash buffer that can help you pay for your living expenses as you search for a new job. You can achieve this is bysetting an emergency fund. Since military jobs are quite stable, you may not have experienced a lack of cash flow from the job.

Job security may not be an assurance in your new job. You, therefore, need to learn how to save some of your funds so that you don’t experience financial difficulties in case things don’t turn out as you expected. You can use the money that you save to handle emergencies such as a medical situation that requires urgent cash. If you fail to save enough for rainy days, you may be forced to apply for military loans that American lenders offer. This can, however, subject you to high-interest rates which you can avoid by getting serious about an emergency fund.

As you transition from military life to being a civilian, you should expect your budget to change. You have to include different things in your budget, such as the cost of insurance as well as taxes. While such items may be new to your budget, you have to bid farewell to things such as tax-free housing allowances. You also have to budget for things such as food, transportation, and miscellaneous expenses. If you have existing debts, include this in your budget and work hard to clear them.

Consider seeking further education. Most of the military members have privileges when it comes to education. You may have your education expenses covered for at least 36 months. If you receive a stipend for supplies and books, make use of such opportunities to further your education. If you don’t intend to further your education, you can transfer unused benefits to your dependents. Ensure you come up with a resume as soon as you leave the military. You can do this with the help of online sources.

Some of the online programs also provide information regarding how to get a new job and interviewing tips. If you intend to find a government job, USAJOBS is a good place to start. If you are a business-oriented person, you need to identify the right opportunities for a startup. Assess potential new jobs and choose one that can cater to all your needs. The salary you earn from the job should cover your taxes, housing, and all the expenses.

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