Why we update our budget at every duty station

As a military family, we move. A lot. We’re currently in our fifth home in eight years. Every duty station comes with its perks and challenges, including the local cost of living. I update our budget at every duty station to make sure we have the most current look at our finances. While it is a good deal of work, I think it’s really important to keep tabs on our money. In the past eight years that we’ve been living together, we’ve dealt with student loans, buying a house, two car payments, and a whole other host of financial situations (remember the hail storm?). I’ve also worked everywhere we’ve lived and have made vastly different amount of money. Keeping our budget current has gone a long way in making sure we are in a good financial spot every place we move.

Update the more fixed amounts in your budget

The main variables that change for us at each duty station are housing, utilities, and my income. Military members may be eligible for a housing allowance depending on their housing situation. We live on post at Fort Gordon, so the housing allowance is paid directly to the housing office as our rent. We don’t include Mac’s housing allowance in our budget here because it’s money we really don’t see. Utilities on post are also unique. The amount you are charged is calculated on the average usage for the neighborhood. If you go over, you pay the difference. If you are under, you receive a refund. I also update what I bring in.

Look at your past few months to guesstimate your costs each month

New duty stations bring new prices. Groceries and gas may cost more or less than where you lived before. You may change your shopping habits based on your new living situation. I now go grocery shopping once a week. It does save us money, and we waste less food. We also use gas differently because we live and work on post. Give yourself a few months to get settled and to see how much you are spending at the places you shop regularly. Average these out and use that number for estimating how much you’ll spend in future months.

Reconcile your budget at the end of each week with your bank statements.

This is where I and a lot of other people stray from the budget. You really should reconcile your budget weekly with what you spent that week. For me, this means entering the actual cost of what we spent against what we estimated (if I spent $125 on groceries instead of the budgeted $100, for example). Doing this on a regular basis will give you an idea of how much you’re spending compared to how much you think you will spend or how much you can actually spend.

Update your budget once a month.

I’ll admit I don’t update our budget as much as I should. In a perfect world, I would update our budget once a month to make sure we have the most current and accurate look at our spending. My advice to reconcile your weekly spending makes this a lot easier. You spend 20 or so minutes a week updating what you spent, and, at the end of the month, you can take some time to decide if your current budget and spending are working for you.

How do you update your budget?