How to Build An Emergency Fund As A Military Family

Trying to figure out the best way to build an emergency fund as a military family? Here are my top tips for saving and how to go about starting.

When Dane and I first got married, one of the biggest challenges we faced was figuring out how to manage our finances. With the uncertainty of deployments, relocations, and changes in pay, it quickly became clear that having an emergency fund was crucial. Here’s how I went about building ours, and some tips that helped along the way.

How to Build An Emergency Fund As A Military Family

Building an emergency fund on a military income is possible with careful planning. Start small, budget carefully, and take advantage of the benefits and opportunities available to you. Over time, those small savings will grow into a financial cushion that can help you with the unexpected challenges that military life can bring.

Start Small, Aim Big

At first, the idea of setting aside a large sum of money seemed daunting. We started by setting a realistic goal—saving $1,000. It wasn’t much, but it was a start. Once we hit that target, we aimed to save three to six months’ worth of living expenses. This approach made the task feel more manageable and less overwhelming.

Budget Like It’s Your Job

Budgeting is key when building an emergency fund. I started by tracking all of our expenses for a month. This helped us see where our money was going and where we could cut back. We created a simple budget that included all necessary expenses—housing, utilities, groceries, etc.—and set aside a portion of our income for savings.

Take Advantage of Military Benefits

One thing that helped us save more effectively was making use of the benefits available to us. For example, when we lived in Hawaii we used the commissary and exchange to save on groceries and household items. These savings went straight into our emergency fund and it’s pretty easy to track that savings, because it’s listed on the bottom of every receipt you get at those places.

Automate Your Savings

To make sure we didn’t miss a month of saving, we set up an automatic transfer from our checking account to our savings account every payday. Even if it was just $50 at first, it added up over time without us having to think about it.

Find Extra Income Opportunities

During deployments, my spouse received extra pay like hazard pay and family separation allowance. Instead of spending this additional income, we funneled it directly into our emergency fund. Without a doubt, it has helped us that I have always worked freelance jobs since we got married, but my income isn’t always a guarantee, so it’s not as dependable as Dane’s salary. 

Avoid Debt Whenever Possible

One of the most important lessons I learned was to pay off debt as soon as you can. When we got married, I still had quite a bit of student loan debt and paying that off often felt like a dark cloud looming over my head. At one point, everything I made freelancing was going directly to my student loans so they could be paid off ASAP.

If you liked this post, you might also enjoy How We Budget Our Money + Holiday Savings Plan or How To Make Money Blogging