How to Create — and Stick to — a Military Budget in 2026

Why do I need to create and use a personal budget? 

A personal budget is your day-to-day tool for managing your money. A budget’s main benefit is that it gives you a clear understanding of your income and expenses, and helps ensure you’re not spending more than you’re earning. Plus, using a budget to guide your spending will help you reduce debt, save for unplanned expenses, and invest for longer-term goals like funding your kids’ college or preparing for retirement.

How to Create a Budget in 5 Easy Steps 

Creating a budget doesn’t have to be hard. Here’s how you create one in five simple steps:

1. Calculate your net income. This is the amount of money you bring in each month after taxes and other deductions have been taken out. Make sure to include all sources of income, such as your salary, bonuses, basic housing allowances, per diem, and money you earn from any side hustles or part-time work.
2. List all your monthly expenses. It's important to be thorough and include everything, no matter how small or insignificant it may seem. Make sure to account for any unique expenses related to your military service, such as deployment costs or moving expenses.
3. Differentiate between your fixed and variable expenses. Fixed expenses don't change from month to month, such as your rent, mortgage or student loan payments. Variable expenses include groceries, utilities, entertainment, gifts and other costs which may vary from month to month. To help determine your variable expenses, check your credit card or bank statements over the past few months.
   Helpful tip: Variable expenses are often areas where you can cut back on spending as you seek to balance your finances.
4. Establish goals and pay yourself first. Too often, people elect to save and invest only whatever money is left over at the end of the month. Instead, consider a “pay yourself first” approach. Set your short and long-term goals, determine how much you will need to put aside each month to stay on track, and then develop a budget that will allow you to pay your day-to-day and month-to-month expenses from what is left over. 
5. Finalize your budget by adjusting your expenses if they’re higher than your income. You may need to make some cuts or find ways to increase your income. If you have debt, consider prioritizing paying it off to reduce interest charges and free up money for other purposes. If you receive a large tax refund every spring, consider adjusting your withholding so that you receive more money in every paycheck that you can allocate to your budget. Helpful tip: Look for areas – potentially in your variable expenses – where you can reduce spending by eating out less or canceling subscriptions you don't use. Reducing expenses is often a matter of need vs. want. Things like meal deliveries, multiple streaming services, your clothing budget, and technology upgrades are usually ‘wants’ — standing between you and your financial goals.

How much of my monthly income should I save or invest? 

There are a lot of different budgeting methods you can try.

• The 50/30/20 method has 50 percent of your income going to needs, 30 percent to wants, and 20 percent to investments, savings or debt.
• The 80/20 rule is simple: Put 20% of your income into savings, investments, and paying off debt, and the other 80% toward spending.
• The zero-based budget entails allocating every dollar to a different source, including savings and investments, in order to hit zero at the end of each month.
• There’s also priority-based budgeting and cash-only budgeting, in addition to others, so talking to a financial advisor about which method makes the most sense for you could be helpful.

2026 Monthly Budget Template

To help you plan your monthly budget, try our easy-to-use template specifically designed for service members. It can help you determine your total household income and better organize your expenses. Most importantly, it can help you make decisions about the best way to allocate your money so that you can meet today’s needs while also working toward tomorrow’s goals. Download our complimentary military budgeting template here.

Tips for Sticking to a Budget While Serving in the Military

Sometimes the hardest part of managing finances is actually sticking to your budget once you’ve created it! To keep you on track, try these three simple tips.

1. Pay expenses first. Make sure all your bills are covered before you spend elsewhere. If you have a hard time keeping track of bills, set up automatic withdrawals to prevent late fees. Keep an eye on payments as they go through to make sure they don’t exceed what you calculated in your budget. Otherwise, it may be prudent to adjust your budget, so your automatic withdrawals aren’t risking overdraft fees.
2. Use automatic withdrawals to invest money. Investments can also be set up for automatic withdrawal, just like your bills. Pay yourself first by making sure your financial goals are covered without having to manually set the money aside each month. When you don’t have to think about it, you’re more likely to stay on track.
3. Review spending on a bi-weekly or monthly basis. You’re more apt to stick to your budget when it’s working for you! Financial situations change all the time. That’s why it’s important to schedule time to review your budget once or twice a month. Try picking the same day each month, like the 1^st and 15^th, to help make it a habit.

2026 Budgeting Tips for your Military Family

Military members with families have extra considerations while building their budget. Here are a few tips to help you make the most of your income:

1. Use the resources that are available to you. Military families have access to a variety of resources that can help with budgeting. For example, many military bases offer financial education classes and the U.S. government’s Office of Financial Readiness offers valuable information online. There’s also the option of working with a financial advisor who has a comprehensive understanding of military benefits and can work with you one-on-one to customize your budget.
2. Take advantage of military-specific benefits. Military families are eligible for a variety of benefits that can help reduce expenses, such as low-cost life insurance, a housing allowance, and dependent pay. On-base benefits include the commissary, which offers discounted groceries, and the Exchange, which offers discounted clothing, electronics and household goods.
3. Plan for deployments and Permanent Change of Station (PCS) moves. Deployments and PCS moves can be expensive. Make sure to factor in related costs — that are not covered by reimbursements — when creating your budget.
4. Involve the whole family. Budgeting is a family affair, so involve your spouse and children in the process. Make sure everyone is aware of the family's financial goals to help create a sense of shared responsibility and accountability.

Factoring a Military Pay Raise into Your Budget

If you already follow a budget, getting a military pay raise means it’s time to update it to ensure your additional income doesn’t disappear into variable expenses. A pay raise presents an opportunity to evaluate your finances and allocate the new income in a way that is beneficial for you. Consider using a portion of your pay raise to improve your family’s current lifestyle, then dedicate the remainder to longer-term financial goals like college savings or retirement investments.

You’ll implement your plans through your budget. So, after a pay raise, update the income portion of your budget and the lifestyle expense or investment portion. Learn more about how you can make the most of your pay raise in our article about the 2026 Military Pay Raise and Inflation.

Join the Millions of Americans Who Report Using a Budget

According to a survey from Debt.com, 86 percent of Americans say they budget regularly. So, no matter where you are in your military career, starting a budget is possible, and can help you move forward on your financial journey. 

Reach out to a Financial Advisor today to enlist professional help in planning your budget for your financial future.