As military professionals, we know that mission success is built on discipline, planning, and execution. Just like preparing for a PT test or planning an operation, building and maintaining your budget is a critical part of achieving financial readiness for yourself and your family. Think of your budget as your personal financial operations order—a living document that keeps you on track, ensures you’re resourced for the mission, and helps you adapt to changing conditions.
Why Budgeting Matters: Your Financial Readiness PT Test
Budgeting isn’t just about tracking numbers—it’s about taking control of your financial future and ensuring your family’s security. The Army emphasizes that effective budgeting is your roadmap for managing finances, helping you align income with expenses and savings goals to provide long-term financial security[1]. Just as you wouldn’t go on a field exercise without a plan, you shouldn’t approach your finances without a solid spending plan.
Step 1: Assess Your Current Situation—Know Your Baseline
Before you can improve your PT score, you need to know your current fitness level. The same goes for your finances. Review all your accounts, debts, benefits, insurance, and income. This assessment is your starting point—your baseline for improvement.
Step 2: Define Your Financial Goals—Set Your Objectives
Whether your goals are to pay down debt, buy a home, or save for retirement, you need to set clear objectives. Prioritize these goals just like you would prioritize mission objectives. Develop a plan to meet them, and remember: discipline is key.
Step 3: Build Spending Habits—Train for Success
Just as you build muscle memory through repetition, you build financial strength through consistent habits. Track your regular monthly expenses and be honest about your spending on flexible items like dining out or entertainment. Adjust as needed to stay on course.
Step 4: Focus on Saving and Investing—Prepare for the Long Haul
Think of saving as your financial reserve. Decide how much you want to put away each pay period to strengthen your position. Consider your risk tolerance and whether you want to use a financial advisor or take a DIY approach.
Step 5: Begin Planning—Execute the Mission
Develop a plan to pay bills, build savings, and ensure your family is covered during deployments or training. Identify who will be the primary money manager if you’re away. Adjust your plan as life changes—just like you would adjust an op order with new intel.
Example: Staff Sergeant’s Pay Breakdown
Let’s put this into perspective with a typical Army Staff Sergeant’s pay:
- DFAS Regular Pay (Base Pay): About $4,444/month
- BAH (Basic Allowance for Housing): Varies by location, but with the 2025 increase, expect a 5.4% rise from 2024 rates
- Jump Pay (if airborne qualified): $200/month as of October 2025
Example Budget Lines:
- DFAS Regular Pay: $4,444
- BAH: $2,500 (check your local rate)
- Jump Pay: $200
- Total Monthly Income: $7,439
Sample Budget Template for Military Families
Below is a sample structure you can use in Excel, tailored for military pay and expenses. This format is based on the DoD Financial Readiness spending plan worksheet:
| Category | Item | Amount | Notes |
| INCOME | Base Pay | $4,444 | Staff Sergeant (over 8 years) |
| BAH (Housing Allowance) | $2,500 | Varies by location | |
| Special Pay (e.g., Jump Pay) | $200 | If qualified | |
| Spouse Income | $_____ | Optional | |
| Other Income | $_____ | Child support, side jobs, etc. | |
| Total Income | $7,144+ | Adjust based on actual earnings | |
| SAVINGS & INVESTMENTS | Savings | $100 | Emergency fund, TSP |
| Investments | $600 | BRS, IRA, mutual funds – aim for 10% of income | |
| HOUSING | Rent/Mortgage | $1,800 | Try to keep under 30% of income |
| Utilities | $220 | Electric, gas, water | |
| Insurance (Home/Rent) | $120 | Renter or homeowner coverage | |
| FOOD | Groceries | $_____ | |
| Dining Out | $_____ | Cut here if funds are tight | |
| TRANSPORTATION | Car Payment | $_____ | |
| Insurance | $_____ | ||
| Fuel | $_____ | ||
| Maintenance | $_____ | ||
| DEBT PAYMENTS | Credit Cards/Loans | $_____ | Include all non-mortgage debt payments |
| HEALTH | TRICARE Co-pays | $_____ | |
| Dental/Glasses | $_____ | ||
| OTHER EXPENSES | Childcare | $_____ | |
| Uniforms/Clothes | $_____ | ||
| Subscriptions | $_____ | Streaming, apps, etc. | |
| SUMMARY | Total Expenses | $_____ | Add up all expense rows |
| Income – Expenses | $_____ | Should be a positive number (leftover funds or savings gap) |
Tip: Download the official DoD Spending Plan Worksheet PDF and use it as your template.
Keeping your expenses less than your income is the definition of “living within your means” and is a key principle to financial readiness and success. It provides peace of mind that you are not overspending.
Discipline Wins the Day
Financial readiness, like physical fitness, is built on discipline and routine. Make budgeting a regular part of your battle rhythm. Review your spending plan monthly and adjust fire as needed. Remember, a well-maintained budget is your plan for success—on and off duty.
Stay mission ready, stay financially fit!
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