Ready for a PCS? Essential change of station tips for military moves

For service members and their families, moving is a natural part of life. It’s also a perk that offers opportunities to experience new destinations and cultures. It's exciting, but it can be expensive if not done correctly, and those added expenses can lead to financial hardships.

Don't skip the planning stage. Here are some tips to help you move to your new home and rest easy once you're there.

1. Start a PCS fund.

While preparation is critical to guaranteeing a smooth transition, no amount of planning can help you avoid out-of-pocket expenses. That's why we recommend all service members maintain a PCS fund worth at least $2,000, plus whatever is required to cover additional expenses the military won't cover.

What does your PCS fund cover? For starters, it can help with moving things like an RV or a boat, and possessions that can't be included in your household goods shipment. Or maybe you're moving overseas and have a pet that will require quarantining. Your goal is to have enough money to cover these expenses so you don't have to put them on a credit card and go into debt.

Keep in mind that your PCS fund is separate from your normal emergency fund of three to six months of living expenses, which is meant to cover unexpected expenses. A military move isn't an unexpected emergency. It's an expense that you can and should plan for.

The best time to start building your PCS fund is right after your last move. That way, you have plenty of time to save gradually without taking a huge hit to your budget. Set a goal for how big your PCS fund needs to be. Plan to reach this goal prior to your next military move by saving automatically.

If you deplete some or all of your PCS fund during a military move, have a plan to replenish it before the next one arrives.

2. Decide on your type of move.

Will your upcoming move be a household goods move, a personally procured move or a combination of both? In other words, how much of the heavy lifting will you do yourself?

With a household goods move, the military's Joint Personal Property Shipping Office, or JPPSO, takes care of your move. They schedule a company to pack your belongings, move them to your next duty station and then unpack them for you. With a personally procured move, or a do-it-yourself move, you do it all. You are responsible for packing, loading, transporting and unpacking all of your belongings.

With both types of moves, the military will help cover the cost. But if you go with a personally procured move, or PPM, you'll often only be reimbursed at most what it would have cost if the military had coordinated the move. If you're able to move yourself for less, good news: You can keep the extra. But if it costs more to move on your own than what the military would pay, you'll have to pay the difference out of pocket.

And keep in mind that with a PPM, you'll have to pay most moving expenses upfront, minus any advance payments your branch of service authorizes. The military will reimburse you after the move is complete.

You can also combine the two moves. With a partial personally procured move, you let the military move most of your belongings, but you move a few things that are either irreplaceable or needed before the movers arrive with the rest. You'll want to make sure that all your items are covered by either the military's moving company or your own insurance policy.

It's also important that you understand how your personal property is protected in each scenario.

• In a household goods move, coverage is normally provided by the military through the transportation service provider. Make sure all your items are listed on the manifest, because you might not be reimbursed for items that aren't listed. If you have any issues, carefully follow the claims process.‍ ‍ ^{See note 1}
• In a PPM move, renters insurance or homeowners insurance may provide limited coverage. For example, you may have coverage if your items are stolen from the moving truck, but you probably won't if you drop and break your $4,000 TV unless it's covered through a valuable personal property plan or through a technology endorsement.

If you hire professional movers and they destroy your TV and it's recorded on your bill of lading, it's probably covered through their insurance. In that case, your own renters policy could serve as backup.

The bottom line: Take some time to understand your insurance policies to know when you have coverage and where your risks may be.

3. Use your per diem wisely.

During a PCS, your travel choices can break the bank or add to it. If you live a five-star lifestyle during your three-star, military-funded relocation, you can easily go into debt.

For example, if the military pays $200 a day for hotel and food and you spend it all at a fancy steakhouse, you can quickly and easily spend more than your per diem.

Before you move, familiarize yourself with the per diem rates.‍ ‍ ^{See note 1} Knowing these rates enables you to plan each day's agenda and meals and stay within your budget.

Keep in mind that different per diem rates apply to family members, depending on their age:

• The military member gets the full per diem rate on travel days, except the day of departure and return are only at 75%
• Dependents ages 12 and older who are traveling with the military member get 75% of the military member's per diem rate.

Dependents under the age of 12 get 50% of the military member's per diem rate. Rates also change if the dependents are traveling separately. Find ways to save money during your next military move by checking out these PCS tips.

4. Use SCRA benefits to your advantage.

Under the Servicemembers Civil Relief Act, or SCRA, you're entitled to terminate your rental without penalty if you meet certain guidelines.

Consider including a military clause in your rental agreement, which can make it easier to break your contract. Around military installations, it's common to have a military clause, and many landlords will automatically add it. But don't assume that it's there. Inquire about it.

If you receive PCS orders or are deployed for more than 90 days, SCRA might allow you to break the lease before the agreement is up. This might save you money, which you can apply to other financial goals.

If you're breaking your lease, provide written notice to your landlord. If requested, you may also have to provide a copy of your PCS or deployment orders with at least 30 days' notice.

5. Advice from veteran military spouses

It's always nice to learn from people who have been there and done that. Experienced spouses with a ton of moves under their belts can offer valuable advice to make your move go smoother.

Here are a few of their top tips:

• Pack essential items separately, such as sheets, towels and pillows. That way you can use them in temporary lodging, as these accommodations may not be fully furnished.
• Carry essential cleaning supplies with you, as movers often refuse to transport them due to their flammable nature.
• Personally transport irreplaceable and valuable items like official documents, baby books and wedding albums, as well as necessary medical and shot records for children's school enrollment. Carefully track all packed items by ensuring each box and item receives a manifest sticker.
• Keep direct contact information for the moving company and driver readily accessible for the most accurate shipment status updates.
• Simplify the unpacking process by color-coding rooms in your new home to guide movers in placing items correctly.
• Carry your children and pets' toys with you, you can help provide entertainment while you wait for the rest of your household goods to arrive.
• Connect with local communities through social media groups to gather information on housing and local services.
• Make notes about what worked and what didn't with this move so you're prepared for the next one.

6. Make a plan for your pets.

If you've ever traveled with pets, you know they aren't always welcome at hotels. And some hotels that do allow pets charge additional fees. Planning to stay at a hotel on your way to your new home? Call ahead or check online to be sure it's pet-friendly.

And once you safely arrive, will your pets be allowed in your next house? Some installations and homeowners associations have restrictions on the number and breeds of occupants' pets. Be sure you know the rules before you secure housing.

7. Be sure your vehicle is road ready.

The last thing you want on your cross-country trip is to break down in the middle of nowhere.

Ensure your vehicle is PCS ready by checking out these auto maintenance tips. This allows you to enjoy the scenery as you're passing by, not as you're waiting for roadside assistance.

8. Notify your service providers.

Make a list of all your service providers, including trash pickup, internet, television, phone, home security, gas, water, electricity, lawn maintenance, house cleaners, etc.

Next, let everyone on the list know that you're moving and arrange to cancel services and receive any deposits that are due. And don't forget to arrange to have services turned on at your new address so you aren't moving into a home with no water or power.

9. Make your health a top priority.

Take a quick inventory of your prescriptions to be sure you have enough medication to last until you get situated and are able to get refills at your new location.

If you have important medical supplies, pack them so they're easy to find and within reach. Items such as an epinephrine injector should always be readily available instead of packing it with other household goods.

10. Get your finances in order.

This is the last item on this list, but it might be the most important: Be sure to update your budget after settling into your new home.

Why is this such a high priority? In your new location, income and expenses are likely to change. Look at your new costs for things like insurance, groceries and utilities, and be sure your budget has up-to-date numbers so you can adjust your spending plan so you spend less than you earn. Otherwise, you'll go into debt, perhaps without even realizing it.