How to Money · Wednesday, July 1, 2026
Lacey Langford stresses that service members should begin financial planning for civilian life at least two years before separating from the military. She notes that allowances like BAH and BAS become taxable, and previously tax-free deployment income will be taxed, requiring adjustments to budget expectations.
“That's a really great question, and one hundred percent yes, you should be preparing your finances to get out of the military at least two years out. And the reason why is because it is a major transition, especially if you've served twenty years.”
“Your identity is changing, your career is changing, and it's not just you, it's your family, it's your spouse, and so it's really important for everybody to start preparing for this transition because you know, you may get a job making the same amount of money, but a lot of your benefits aren't taxed.”
“So there's all these nuances to prepare your finances for, but also your quality of life, your mental health to make this transition out. That starting early on can make the transition less stressful for you and your family.”