Leaving military service changes how you're paid, what's taxed, what's covered and when money arrives. This checklist walks the transition in four phases so the financial side is handled before the job side gets busy.
12–6 months out
- Write down your true monthly floor: housing, food, transportation, insurance, minimum debt payments.
- Note which allowances (such as BAH and BAS) end at separation and what that removes from monthly income.
- Check your Thrift Savings Plan balance, contribution rate and beneficiary designations.
- Start or top up a cash cushion sized to your expected gap between final pay and first civilian paycheck.
- Confirm your terminal-leave plan and how it affects your final pay dates.
6–3 months out
- Compare civilian salary offers on a total-cost basis: taxes, health premiums, retirement match, commute.
- Review health coverage options and start dates so there is no gap.
- Complete required transition counseling and document what applies to your situation.
- If you're doing SkillBridge, map the exact weeks of overlapping pay and expenses.
- Update the household budget for a possible one-income or reduced-income period.
3 months to separation
- Move autopay and direct deposits off any account tied to your current duty station.
- Confirm mailing address, tax withholding and state-of-residence implications.
- Save copies of pay statements, orders and medical records before access changes.
- Rebuild the three buckets using civilian numbers — Bills, Savings, Lifestyle.
- Decide on your TSP plan; understand your options before moving anything.
First 90 days after
- Verify your first civilian paycheck matches the offer, including deductions.
- Restart automatic savings transfers at whatever amount is realistic.
- Run the 15-minute weekly money routine every week during the adjustment.
- Revisit insurance: health, life, disability, renters or homeowners.
- Re-check the plan at 90 days and adjust one number, not the whole thing.
Common mistakes
- Comparing a civilian salary to base pay while forgetting untaxed allowances.
- Assuming the first civilian paycheck lands the week after separation.
- Making a permanent retirement-account decision during the busiest month.
- Letting the spouse's career transition go unplanned alongside the service member's.
Sources and further reading
Educational content only, not individualized financial, tax, legal or benefits advice. Confirm details with official sources for your branch and situation. Full disclaimer.