A PCS, or a "Permanent Change of Station" is a
military
move that relocates your family from one military base to another due to a
reassignment. Although the military will reimburse you for many of the moving
expenses incurred during your PCS, moving still remains an expensive endeavor
and it's easy to lose track of your finances in this stressful time.
If
you straighten out your finances before your move and plan your budget
accordingly, there's no reason why you can't escape the PCS with as little
damage to your bank account as possible. Read on for some helpful financial tips
for your PCS move.
Request for an advance on entitlements
The United States
government repays you for choosing a military career by covering a lot of your
moving expenses. To do this, they allocate funds through several entitlement
programs that you may be eligible for, depending on your rank, status, and your
personal situation.
Here are a few examples:
- Temporary Lodging Expenses (TLE): This entitlement program provides
reimbursements for meals and any other temporary lodging expenses related to the
move, like temporary housing or hotel costs.
- Military Allowance in Lieu of Transportation (MALT): Reimburses you
for the mileage costs that you accumulate while traveling during the move.
- Basic Allowance for Housing (BAH): Provides a partial reimbursement
for housing costs if you choose not to use government-provided housing.
- Dislocation Allowance (DLA): Covers various other miscellaneous
moving-related costs.
In most cases, these reimbursements aren't handed
out until after your PCS move is completed. However, with 10 days prior notice,
you can request an advance on several of these entitlements, which can be a
major asset if you are short on money and need some financial assistance for the
move.
Create your budget and plan your moving costs
Planning your
budget is one of the most important aspects of preparing for a move. You should
anticipate all of the costs before, during and after the moving process and
create a budget that works for your move and for your family. Estimate your
driving costs during the move, lodging costs and other expenses during the move.
Make sure you also budget for miscellaneous expenses after your move, like
buying new furnishings for your home and stocking it with groceries.
Do your research
In addition to preparing and planning your
budget, you should also do a little bit of research on the town or city you'll
be relocating to during your PCS. If you have
children,
research the schools in the area and find out what kind of recreational programs
the community offers. If you know of your station change far enough in advance,
you can even begin researching the different neighborhoods and housing options
in the area and find the perfect place for you and your family to settle down.
Begin saving as soon as possible
Saving money is sound financial
advice for just about anyone, despite the fact that it's difficult when you have
bills and various other expenses. As soon as you're made aware of your PCS move,
you should begin saving some money away for the move. Doing so in advance will
help you get a head start on allocating your funds to various parts of the move.
Get rid of what you don't need
If you are in need of some extra funds for your
move, a good way to get some quick cash is to sell some of your unwanted
belongings in a garage sale or even online using sites like eBay or Craigslist.
By doing this, you'll actually be killing two birds with one stone: you'll be
gathering some extra money for your move and you'll also be lightening your
moving load and avoiding unnecessary clutter in your home.
Avoid using credit cards
Although it can be tempting, especially
if you're low on money and need to cover some of your moving expenses, you
should avoid using credit cards, as most have very high interest rates. Relying
too heavily on them can be dangerous and credit card debt can pile up very
quickly, leaving you with even more bills to pay once you've settled into your
new home.
Apply for a military loan
If you need it, the military offers
service members an Advance Basic Pay program, which is essentially an
interest-free loan that you can pay back over the course of 12 weeks. However,
when searching for a military lender from which to receive your loan, make sure
to do some research to confirm that you are contacting a legitimate military
lender. There are many out there, and some often look to take advantage of
military men and women. They may use illegal payday services that use deceptive
tactics to charge undisclosed fees and penalties should you fail to meet their
payment requirements. So it's very important that you make sure you're dealing
with an approved military lender before signing any legally binding financial
documents.