Financial Planning

PCS Move Financial Planning: Budgeting for Your Next Assignment

Coleman Marlatt
November 10, 2024
9 min read
PCS Cost Breakdown

Understanding the full cost of a PCS move helps you budget effectively and avoid financial surprises. Here's what to expect:

Out-of-Pocket Expenses:

  • House hunting trip costs beyond allowance
  • Temporary lodging beyond per diem
  • Utility deposits and connection fees
  • Vehicle registration and inspection
  • Emergency repairs or replacements
  • Pet transportation costs

Reimbursable Expenses:

  • Household goods shipment
  • Travel expenses (mileage, lodging, meals)
  • Temporary lodging expense (TLE)
  • Dislocation allowance (DLA)
  • House hunting trip allowance
  • Storage costs (if authorized)
Creating Your PCS Budget

Step 1: Calculate Your Allowances

  • Dislocation Allowance (DLA): Varies by rank and dependents
  • Travel Allowance: Based on distance and family size
  • Per Diem: Daily allowance for meals and incidentals
  • Temporary Lodging: Up to 10 days at origin and destination

Step 2: Estimate Additional Costs

  • Security deposits: $500-2,000
  • Utility connections: $200-500
  • Vehicle registration: $50-300
  • Emergency fund: $1,000-3,000
  • House hunting expenses beyond allowance: $500-1,500

Step 3: Build Your Buffer

Plan for 20-30% more than your estimated costs. PCS moves often include unexpected expenses, and reimbursements can take weeks to process.

Government Move vs. Personally Procured Move (PPM)

Government Move (GBL)

Pros:

  • No upfront costs
  • Professional packing and moving
  • Insurance coverage included
  • Less personal involvement required

Cons:

  • Less control over timeline
  • Potential for damaged items
  • No financial benefit
  • Limited flexibility

Personally Procured Move (PPM)

Pros:

  • Potential to make money
  • Complete control over process
  • Flexible timeline
  • Better care of belongings

Cons:

  • Significant upfront costs
  • Physical labor required
  • Risk of losing money
  • More complex paperwork

PPM Financial Considerations:

  • You receive 95% of what the government would have paid
  • Must save all receipts for truck rental, fuel, equipment
  • Profit is taxable income
  • Consider the value of your time and physical effort
Money-Saving PCS Tips

Before You Move:

  • Declutter and sell items you don't need
  • Use up frozen and perishable foods
  • Research your new duty station thoroughly
  • Compare housing options (on-base vs. off-base)
  • Get multiple quotes for services if doing PPM

During House Hunting:

  • Stay within your house hunting trip allowance
  • Use virtual tours to narrow options before visiting
  • Consider staying with friends or in base lodging
  • Negotiate move-in specials and reduced deposits
  • Factor in commute costs when choosing location

At Your New Station:

  • Set up utilities before arrival to avoid rush fees
  • Research local discounts and military benefits
  • Join spouse groups for local money-saving tips
  • Update your state of residence if beneficial
  • Register for base services and facilities
Managing Cash Flow During PCS

Cash Flow Challenges:

  • Reimbursements can take 30-60 days
  • Large upfront expenses for deposits and utilities
  • Potential gap in BAH if moving mid-month
  • Travel expenses paid out-of-pocket initially

Cash Flow Solutions:

  • Build PCS emergency fund 6 months in advance
  • Apply for government travel card for official expenses
  • Consider advance pay if available
  • Use high-yield savings for PCS funds
  • Track all expenses meticulously for reimbursement
PCS Financial Checklist

6 Months Before:

  • Start building PCS emergency fund
  • Research new duty station costs
  • Begin decluttering and selling items
  • Review and update budget

3 Months Before:

  • Get PCS orders and calculate allowances
  • Decide on government vs. PPM move
  • Apply for government travel card
  • Start house hunting research

1 Month Before:

  • Finalize moving arrangements
  • Set up utilities at new location
  • Notify banks and creditors of move
  • Prepare expense tracking system

After Move:

  • Submit reimbursement claims promptly
  • Update address with all institutions
  • Register vehicles and update licenses
  • Review and adjust budget for new location