Military families often find themselves adjusting to life on one income, whether due to a partner’s deployments, frequent moves, or childcare responsibilities. Budgeting wisely and implementing effective savings strategies can make a big difference.

Let’s explore some of our tested budgeting tactics, savings tips, and ways to stretch a single income further.

Creating a Budget That Works

Track All Income and Expenses

The first step in building a sustainable budget is understanding where every dollar goes. Yes, all.

List monthly income sources: This may include Defence Force pay, allowances, and any additional income streams.
Document all expenses: Include fixed costs like rent or mortgage, utilities, groceries, and transportation, as well as fluctuating expenses like entertainment (Netflix, Disney, Binge..) or dining out.
Use budgeting apps: Apps like Pocketbook can help you track expenses and stay organised.

Prioritise Essential Spending

On a single income, it’s crucial to focus spending on essentials.

Separate needs from wants: Prioritise spending on essentials such as housing, food, utilities, and education.
Set limits for non-essentials: Allocate a small percentage of your budget for non-essential expenses to avoid feeling deprived but remain disciplined.

Saving Strategies for Military Families

Set Up an Emergency Fund

An emergency fund can be a financial lifesaver, especially given the unpredictability of military life.

Aim for 3-6 months of expenses: Try to build a fund that covers essential expenses for three to six months.
Start small: If saving a large amount feels overwhelming, begin with a goal of $1,000, and add to it gradually.
Utilise high-interest savings accounts: Look into high-interest accounts like those offered by ING or UBank in Australia to maximise your savings.

Take Advantage of Defence-Specific Benefits

The Australian Defence Force offers various support services and benefits that can help military families financially.

ADF Partner Employment Assistance Program (PEAP): This program helps ADF partners with employment services, reducing the financial strain of frequent relocations.
Defence Home Ownership Assistance Scheme (DHOAS): If you’re looking to purchase a home, explore DHOAS for potential home loan subsidies.
Check with Defence Family Support Services: They offer a range of resources, from counselling to financial advice, which can help you manage your budget effectively.

Cutting Costs and Maximising Savings

Minimise Housing Expenses

Housing is typically one of the largest expenses for families. For military families, there are some ways to manage housing costs efficiently.

Consider Defence Housing Australia (DHA): DHA offers rental homes to Defence members and their families, which can sometimes be a more affordable option.
Rent wisely: If DHA housing is not available, compare rental prices in your area and negotiate rent where possible.
Use energy-efficient appliances: Reducing your utility costs with energy-saving practices and appliances can lower your monthly expenses.

Reduce Everyday Expenses

Small changes in daily habits can lead to big savings over time.

Grocery planning: Plan meals and shop with a list to avoid impulse buys. Check out apps like Woolworths’ “Everyday Rewards” for discounts and cashback.
Reduce transport costs: Look into public transport options, carpooling, or even Defence discounts for car rentals to save on fuel and maintenance costs.
Review insurance: Regularly review insurance policies for better rates, especially when relocating. ADF families may be eligible for discounts on certain policies.

Making the Most of Family Allowances

Understand Your Entitlements

The Australian government provides a range of benefits and allowances that can help military families manage on a single income.

Family Tax Benefit: This payment helps families with the cost of raising children, and eligibility can be determined by income level.
Child Care Subsidy: The Child Care Subsidy can reduce out-of-pocket childcare costs, which is especially helpful for families with young children.
Rent Assistance: If you’re renting privately, you may be eligible for Rent Assistance to ease housing costs.

Access Free Community Resources

There are numerous free resources across Australia that provide financial assistance or cost-saving opportunities.

Local libraries: Many offer free classes, workshops, and events, as well as access to books, movies, and magazines.
Community centres: Often host free or low-cost activities and provide support services for families.
Salvation Army and Red Cross: These organisations offer financial counselling and emergency relief for families in need.

Long-Term Savings Strategies

Open a Dedicated Savings Account for Your Long-Term Goals

Setting aside money specifically for long-term goals, like homeownership or education, can help military families prepare for the future.

Automate savings contributions: Automate deposits to a dedicated savings account for consistent contributions, even if they’re small.
Consider investment options: Look into low-risk investment options, such as Australian savings bonds or conservative superannuation funds, which can grow over time.

Use Budget-Friendly Family Activities

Family time doesn’t have to be expensive. Get creative with budget-friendly activities.

Explore national parks: Australia has a stunning range of national parks with free or low-cost entry, perfect for family outings.
Attend free local events: Check local councils for community events, from movie nights to festivals and workshops.
Enjoy a “staycation”: Explore your local area by visiting new beaches, hiking trails, or museums, reducing the need for costly trips.

Living on a single income as a military family can be challenging, even with careful budgeting, simple strategies, and accessing available benefits, and like many families, we have learnt to live ‘differently’. By prioritising essentials, building an emergency fund (no matter how small it may be), and taking advantage of Defence-specific resources, you can create a balanced budget that supports your family’s needs and goals.

I’d love to hear your tips on navigating ‘life’ on a single income; comment with your own tips for budgeting on a single income.

Saving And Budgeting Strategies On A Single Income