2.2 Assess Financial Needs
What to Know
One of the issues you must consider when looking for possible jobs and careers is money. If you look back at the work-related values you identified in section one, you may find salary at the top of the list, the bottom or anywhere in between. There is a bottom line. You need a certain amount of money to support yourself and to reach your goals.
What to Do
The pay and benefits structure in the military is unique. In the civilian labor force federal and state taxes will be withheld from your pay. You might also pay social security tax and city or local taxes. Benefits such as retirement plans, health care, day care, etc. may also be deducted from your pay. It is important to consider the benefits offered by an employer. Some provide no benefits while others pay for a wide variety of benefits.
Practice
Before looking for employment, you should determine the amount of money you will need to earn in order to meet your expenses and your goals. Use the following budget worksheets to help you figure out your needs. Work on this exercise with your spouse and/or other significant members of your household and family.
Financial Planning
If you have personal financial concerns, you need to seek appropriate counseling. Your transition center is a great resource to help you find the right consultant. You may also want to consider obtaining a Credit Bureau Report. See your transition center for more resources and information.
Transition Budget Worksheet Instructions
- Complete the transition budget worksheets.
- When completing the worksheets make sure your estimates are realistic. Contact the transition assistance center, real estate agencies and/or local libraries in the general area you anticipate moving to. Ask them for detailed estimates on the cost of living in that area. Also, look over your checkbook register for the past several months to get an idea of how much and where you spend your money.
- This worksheet will be instrumental in helping you determine a target salary for your employment search.
- Keep in mind sources of income such as retirement and spouse's income.
- Consider part-time employment to help until you find a permanent position.
- Be certain you evaluate where you can save money (i.e., grocery store vs. commissary, insurance, number of times you eat out, etc.). Also, remember the benefits you currently receive will change and you need to see these as a future expense.
Remember: Employment searches may take longer than you anticipate.
When you prepare your household budget, be conservative and thrifty. Plan for all of your necessary expenses and add a "cushion" amount. Spend carefully based on what you need during this time of transition. Wait until you are employed to commit to new or extravagant purchases.
Monthly Transition Budget Worksheet [PDF]
Transition Budget Financial Planning Worksheet [PDF]
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