Financial Moves to Make When Separating from the Military

Separating from the Military is a lengthy process. Fortunately, there are lots of resources to help prepare you for a smooth transition to civilian life. The sooner you start planning for your future, the better.

According to the Military Times, it’s best to start thinking about your separation several years before it happens. For example, finding a mentor and building a network in your desired career field or college can be done 18 months to two years before you separate. Military OneSource also recommends connecting with the Transition Assistance Program of your service branch and scheduling your pre-separation counseling a minimum of 90 days before separation.

Here are some other key financial moves to consider:

• Plan Your Next Career Move – How can the skills and experiences you’ve learned in the Military serve you in your civilian life? Whether you are looking for your next employment opportunity or want to start your own business, attending free workshops like Abound’s upcoming Veterans 2 Entrepreneurs event, can help you better prepare for your next steps.
• Budget – Financial management skills like budgeting were probably not taught in basic training. Take the time now to write it all down and get a clear understanding of what your post-separation income and expenses will be so that you can start your next chapter prepared.
• Maximize Your Benefits – Start by understanding the various benefits you’ve earned during your military career, which can vary greatly. From making your last move count to maintaining healthcare coverage, utilizing GI bill benefits and taking advantage of VA home loans, there are a lot of money-saving benefits to explore.
• Consider Life Insurance Options – While you’ll no longer be covered as a service member, you will likely still want to provide for your loved ones through a life insurance policy. Explore your options with a trusted financial partner.

Boosting your savings and paying down debt are always smart money moves, but they are especially important as you prepare to separate from the military. These actions can help insulate you if there’s a gap in employment, which may happen, after you leave your service branch.

Learn more about Abound’s military support here.